Home shopping and educational supplies specialist, Findel, had a tough first half and management has been busy compensating for weaker demand by cutting costs and reducing output. Even so, turnover held-up pretty well and the gross profit was only 9 per cent lower on the year at £132m.
The home shopping side provides the bulk of turnover and sales there rose £7.4m to £171.8m - although £6.7m of this came from acquiring the remaining 70 per cent of home entertainment products provider, Webb Group. Still, divisional operating profits slid from £9.6m to £1.4m. Moreover, sales in the education supplies division fell 20 per cent to £74.5m, although sales in the 34 weeks to 27 November did at least fall by a less significant 15 per cent. The relatively small healthcare division pushed sales ahead slightly to £30.9m, but operating profits eased from £1.4m to £1m.
Debt also remains a worry and, in August, the group raised a gross £81m through a share placing - although this refinancing came with a chunky £11.9m of fees. Looking ahead, and assisted by the placing and a £40m reduction in stock levels, Findel hopes to cut debt by £165m a year, up from £100m previously, through to the year ending in March 2011.
Numis Securities expects full-year adjusted pre-tax profit of £33.4m (£57m: 2008), EPS of 30p (47.9p: 2008).
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| FINDEL (FDL) | ||||
|---|---|---|---|---|
| ORD PRICE: | 33p | MARKET VALUE: | £162m | |
| TOUCH: | 32-33p | 12-MONTH HIGH: | 103p | LOW: 21p |
| DIVIDEND YIELD: | nil | PE RATIO: | na | |
| NET ASSET VALUE: | 23p* | NET DEBT: | 229% | |
| Half-year to 3 Oct | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2008 | 295 | 1.85 | 1.07 | 1.4 |
| 2009 | 278 | -21.1 | -7.02 | nil |
| % change | -6 | - | - | - |
Ex-div: - Payment: - *Includes intangible assets of £170m, or 35p a share | ||||
