Excellent Results - a nice surprise on the dividend - have added a few more, It looks as though recent aquisitions are taking effect!

dikytree.

flying

:-))

Hope for good christmas update

Interim Management Statement
RNS
RNS Number : 1428W
Findel PLC
23 January 2013





23 January 2013



Findel plc (the "Group")

Interim Management Statement



Findel plc, a market leader in the UK home shopping, education supplies and healthcare markets, today issues its Interim Management Statement covering the 16 weeks of the Group's second half from 29 September 2012 to 22 January 2013. This should be read in conjunction with the Group's Interim Results announcement issued on 27 November 2012.



Group Performance

The Board continues to be pleased with the strength of the Group's recovery, with total sales since the half-year 10.2% ahead of the prior year, up from 7.7% in the 8 weeks to 23 November 2012*. Year-to-date, Group sales are 8.9% ahead of the prior year.



Divisional Performance

Express Gifts, our largest business, has continued to achieve strong sales growth, recording its strongest Christmas sales performance for five years. Since the half-year sales have increased by 13.3% versus the prior year, building on the 9.1% in the 8 weeks to 23 November 2012*.



Express Gifts has continued to invest in the customer value proposition, and as a result has experienced an 8% growth in active customer numbers over the last 12 months. Whilst this has been driven by a reduction in gross margin percentage, we expect Express Gifts to deliver a significant improvement in profit performance for the year as a whole. Bad debt indicators have remained broadly stable since the half-year benefitting from the rollout of the behavioural credit scoring system, which now applies to 60% of the customer base. As previously noted, the rate of sales growth is likely to moderate as prior-year comparators become tougher and we are seeing this effect in the early response to our Spring catalogue.



Although the rate of sales decline versus the prior year has now broadly stabilised, Kleeneze's trading remains challenging. Sales since the half year are 9.1% below prior year with distributor retention a continuing factor. Active distributor numbers are 10.3% below last year at this point. As mentioned in the Interim Results, a number of new initiatives are being rolled out across the distributor base to address this shortfall and to improve retention rates.



Kitbag continues to make significant improvements on the prior year operating loss, with trends seen at the time of the Interim Results continuing. Sales since the half-year were 19.0% ahead of last year with a gross margin improvement of around 2%. Kitbag was recently awarded new contracts to support the online sales of Olympique Marseilles football club, effective immediately, and the Tour de France, effective Spring 2013. It has also recently renewed its contract with Formula 1 for three years, although the relatively small contract with the ECB will come to an end in February. The relaunch of Kitbag.com, our own e-tailing website has not met all of our aspirations and we will increase the level of marketing spend behind this element in the final quarter which should deliver medium-term payback.



In Education Supplies, during the division's seasonally quiet period, we have continued to see the encouraging trend of growth in our core UK brands since the half-year results, offset by the previously reported shortened duration of Sainsbury's 'Active Kids' scheme, which is supported by Findel Education, and lower international exports, resulting in total sales in the period down 1.6% on the prior year. Clearly, any extended period of school closures due to weather will impact the division's performance over the remainder of the year.



Finally, our Healthcare division has continued to perform well. Sales for the period since the half-year are 20.1% ahead of prior year driven by new contract starts and growth in existing contracts, with margin trends maintained. Having been successful in winning the ICES contract for Norfolk to start in April 2013, as announced with our Interim Results, the business was unsuccessful in two other bids within the period. Discussions regarding a possible sale of the division are progressing, with the process constructed to allow for the conclusion of the new ICES bid submissions.



The financial position of the Group continues to improve, with a focus on debt reduction whilst investing in growth.



Summary



The Group remains on the path to recovery and overall we are positive about the progress we are making in a difficult environment. We remain focused on delivering our multi-year turnaround plan, which is aimed at delivering significantly improved shareholder returns. The Board continues to believe that, as stated at the time of our Interim Results, the Group will deliver improved results in the second half versus the prior year, continuing the trend of improved performance.



* the 8 week period since the commencement of the second half of the financial year from 29 September 2012 to 23 November 2012, and which was commented upon in the Interim Results announcement on 27 November 2012

News did not look to bad, over sold .

Findel (LSE: FDL.L - news) falls 7.3 percent as the home shopping group's broadly in-line trading update leads Seymour Pierce to reduce its full-year 2013 pre-tax profit forecast to 14.5 million pounds from 16.0 million pounds, with similar revisions also made to its subsequent year forecasts.

"Management has made encouraging progress in improving performance of the business but before we consider an upgrade to our recommendation, we need to see a structural decline in net debt, forecast at circa 230 million pounds at end of March 2013. In addition, most importantly, the stock has to look more attractive on a sum of the parts basis," Seymour Pierce says in a note, retaining its "hold" rating on Findel.