Retail business Findel (FDL) has managed to refinance its medium-term debt facilities to keep on top of its substantial borrowings. During the six months to September, the group paid down an additional £20m in debt. But it still owes around £218m, or £95m, excluding the securitisation facility for Express Gifts.
Express Gifts didn't fare particularly well during the group's first half. Product sales only grew 1.9 per cent, leaving operating profits flat. That was due to weak demand from the new autumn catalogues, though sales from existing customers did grow 7.4 per cent. Overall sales for the division grew 2.7 per cent, below management's expectations. Findel Education, which supplies teaching resources to schools, also faces an uphill battle. Revenues fell 8 per cent in the half-year period, although a slight stabilisation in customer numbers and improved product margins left underlying operating profits up 16 per cent at £3.6m.
Just after the period-end, Findel received an offer for its Kitbag business. While contract terms have been agreed, the group now says the buyer is struggling to come up with the funds.
House broker N+1 Singer expects pre-tax profits of £29.5m for the year ending March 2016, giving EPS of 25.7p, compared to £26.5m and 23.4p in FY2015.
| FINDEL (FDL) | ||||
|---|---|---|---|---|
| ORD PRICE: | 227p | MARKET VALUE: | £196m | |
| TOUCH: | 227-228p | 12-MONTH HIGH: | 255p | LOW: 162p |
| DIVIDEND YIELD: | nil | PE RATIO: | na | |
| NET ASSET VALUE: | 93p* | NET DEBT: | 271% | |
| Half-year to 25 Sep | Turnover (£m) | Pre-tax profit (£000s) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2014 | 192 | -998 | -0.8 | nil |
| 2015 | 191 | -553 | -0.5 | nil |
| % change | - | - | - | - |
Ex-div: na Payment: na *Includes intangible assets of £46m, or 53p a share | ||||
