Shares in retailer Findel (FDL) jumped by a third on the day the retailer delivered first-half adjusted pre-tax profits that were up £10m to £11.9m, well ahead of analysts’ expectations. Part of that growth was down to the sale of delinquent debt and provisioning changes, according to analysts at N+1 Singer, but the broker admits better-than-expected underlying growth accounts for the remainder.
Improved gross margins across both the express gifts and education segments bolstered this performance, while after the period-end Black Friday was said to have traded well. Analysts are starting to call Findel a "double-digit growth online retailer", even if the shares have continued to underperform an already weak sector in recent weeks.
But thanks to a strong start to the festive trading period, N+1 analysts say there’s better visibility for the rest of the year, believing that the company is on track to meet expectations. Analysts expect pre-tax profits of £26.5m for the year ending March 2018, giving EPS of 23.5p, compared with £22.2m and 19.6p in FY2017.
| FINDEL (FDL) | ||||
| ORD PRICE: | 200p | MARKET VALUE: | £173m | |
| TOUCH: | 193-200p | 12-MONTH HIGH: | 215p | LOW: 150p |
| DIVIDEND YIELD: | NIL | PE RATIO: | NA | |
| NET ASSET VALUE: | 27p* | NET DEBT: | £237m | |
| Half-year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2016 | 213 | -0.6 | -0.5 | nil |
| 2017 | 226 | 8.1 | 7.5 | nil |
| % change | +6 | - | - | - |
| Ex-div: | na | |||
| Payment: | na | |||
| *Includes intangible assets of £25.8m, or 30p a share | ||||
