Findel PLC Trading Statement (8574C)

TIDMFDL

RNS Number : 8574C

Findel PLC

25 January 2018

25 January 2018

Findel plc ("Findel" or "the Group")

Trading statement

Strong Christmas online trading underpins drive to profit growth

Findel, the online value retail and education business, today issues a trading update covering the 42-week period ended 19 January 2018.

Express Gifts had a record Christmas sales performance, with momentum built from a strong Black Friday campaign. Year to date product sales have grown by 11.0% in line with our plans. The active customer base ended the calendar year at 1.8m, up 15% on the previous year, aided by a strategy of carefully targeted TV and online marketing. Online ordering levels during Q3 averaged 72%, up from 65% in the previous year.

The proportion of credit account customers remained strong, with interest-earning balances ending December up 13.7% on the prior year, positioning the business well for the key upcoming months for financial services revenues and collections.

Findel Education continues to see encouraging trends from its turnaround strategy focussed upon increased online trading and price competitiveness.

Net debt ended December 2017 at GBP76.7m, down by GBP5.1m from the previous year, despite strong growth in Express Gifts' receivables and outflows from the legacy customer refund programme which remain on track.

While early trading in the traditionally quiet month of January has been slightly slower than anticipated, the further strengthening of our online value retail proposition leaves us well-placed against the current consumer backdrop. The Group remains on track to deliver a full year performance in line with market expectations.

Enquiries

   Findel plc                                                          0161 303 3465 

Phil Maudsley, Group CEO

Stuart Caldwell, Group CFO

   Tulchan Communications                                 020 7353 4200 

Susanna Voyle

Will Smith

Notes to Editors

The Findel group contains market leading businesses in the UK home shopping and education supplies markets. It is primarily a retailer and distributor, handling and supplying specialist products manufactured by third parties.

The Group's activities are focused in two main operating segments:

-- Express Gifts - one of the largest direct mail order businesses in the UK, primarily trading via the Studio.co.uk brand; and

-- Findel Education - the second largest listed independent supplier of resources and equipment (excluding information technology and publishing) to schools in the UK.

This information is provided by RNS

The company news service from the London Stock Exchange

END

TSTFMGZMLDRGRZM

(END) Dow Jones Newswires

January 25, 2018 02:00 ET (07:00 GMT)