The home shopping and education company behind the door-to-door Kleeneze sales operation has seen losses narrow in the first half of the year.
Findel’s interim results showed the company made a £3 million pre-tax loss in the 26 weeks to September 27, a significant improvement from the £11.9m reverse at the same juncture last year.
Revenues in the period climbed 5.2% from £231.7m to £243.6m, while net debt was reduced from £252.1m to £236.7m. The group’s total net assets also increased in value from £90m to £105.6m at the half-year point.
Findel whose largest division is it Express Gifts business, which contributes 50% of overall revenues said the results were encouraging and the firm was on track to deliver full-year profit growth.
It said the Kleeneze business, known for its home-delivered catalogues featuring all manner of houseware products, was stabilising after a significant decline in sales and profits during 2012. However, revenues were 3.5% below that seen last year during the first half.
The company instituted a major restructuring in the business, which saw a change in management team early this year, a reduction in cost overheads, a redesign of its catalogue and products, and increased coordination with the Express Gifts business.
“Although our efforts to return Kleeneze to growth after its many years of decline are yet to bear fruit, the business remains profitable and cash generative and is thus a contributing member of the group,” Findel told investors in the update.
“Despite the sales decline, the actions already taken within the business should underpin the full-year profit performance.”
The company also said trading in its Kitbag division had been disappointing in the period, with losses increasing from £0.7m to £2.9m. It said the turnaround of the business had “clearly slowed” but a renewed focus on sales and costs combined with a strong new business pipeline which includes World Cup and Ryder Cup related work was expected to lead to an improved performance next year.
The core gifts operation saw revenues rise by 10.7% to £121.9m in the period, with the business posting 8.4% growth in its customer base ahead of the important Christmas trading period.
Group chief executive Roger Siddle said the result represented sustained progress against the company’s strategic plan.
“These interim results represent the fourth consecutive half-year period of year-on-year revenue growth since launching our turnaround plan three years ago.
“Express Gifts and education, some 75% of group revenues combined, are seeing improved momentum whilst Kitbag and Kleeneze still need to show progress.”