The owner of Kleeneze catalogues yesterday warned that it would take longer for the business to stabilise than expected.
Revealing its final results for the year to March 28, Findel said it had booked a £10 million accounting write-down on the value of Kleeneze and its sister Kitbag sports goods business.
The firm said Kleeneze’s performance had deteriorated, with sales from the doorstep catalogue business declining 5.5% during the year and operating profits reducing by around a third to £1.3m.
Findel said actions taken by management had slowed the rate of decline compared with the previous year, but the number of active catalogue distributors fell by more than a quarter in the period.
Despite Kleeneze’s issues, Findel saw overall revenues increase by 4.8% during the year to £514.7m, and pre-tax profits before exceptional items increased by 87% to £22m.
The group’s performance was bolstered by its Express Gifts division which saw operating profits rise by 40% to £30.6m and a significant profits hike from its educational supplies unit.
“Over the past three years we have turned the group around from its extremely difficult position through a clear focus on a series of ‘self-help’ plans,” chief executive Roger Siddle said.
“The strong results we are reporting today represent a year of transition for Findel as we make the move from a turnaround phase to one of continued growth and improvement,” Mr Siddle added.