Ahead of the company’s final results on 12th June,
Findel plc announced that it expects group sales
to be in line with expectations and approximately 1 per cent ahead
of last year. In a preclose statement for the year ending 30th
March, Findel said its mail order arm Express
Gifts continued to see increasing customer numbers in
response to a “more competitive pricing approach and
improved offer”. Thanks to a strong Christmas, sales are
around 9 per cent higher for the year. In contrast, Findel saw a
sales decline at Kleeneze, but this was reduced
from 9 per cent in the first half to 1 per cent in the second half
of 2011/12. The education Supplies division is expected to report
an annual sales decline for the full year of around 12 per cent.
Findel attributes part of the slump to increasing pressures on
school budgets. The healthcare division is performing well,
maintaining an annual sales growth since the half-year of 12
per cent.
While sales at Findel-owned Kitbag are expected
to rise this year, the business is on track to deliver a
“significant operating loss”. To turn its fortunes
around, the management team is now focused on growing cash margin
and dealing with legacy issues such as poor processes and
unprofitable contracts. The sportswear retailer has already
signed new exclusive terms with Aston Villa FC and has won
contracts in golf to support the next two Ryder Cups and they
have renewed with The Open Championship. Discussions are also in
an advanced stage with “two major American
organisations” to service their European online stores.
Following the restructuring of Kitbag as well as further
management changes and rationalisation group-wide, Findel will
incur a cost £8 million in the second half of the year.
Following Ofcom’s announcement of a new regulatory framework to
safeguard the universal service, Royal Mail
confirmed that from 30th April, the price for a first class stamp
for a standard letter will rise from 46p to 60p. The price for a
second class stamp for a standard letter will increase from 36p
to 50p. For business customers, Ofcom has placed a cap on second
class small parcels and large letters up to 2Kg in weight, on
which it will consult next month. This cap will not constrain
prices for 2012/13, which have been confirmed as £2.70 for
first class packets weighing up to 750g from 30th April. For
second class packets the price will be £2.20. Currently, the
prices range between £1.58 and £3.05 for first class
items weighing up to 750g and between £1.33 and £2.61
for second class packets.
Matalan founder John Hargreaves has acquired the
Fenn Wright Manson brand, John
Lewis concession and a small number of its 17 shops,
reports the Independent. According to the article, he
intends to run Fenn Wright Manson as a separate business to
Matalan, with his daughter Maxine playing a lead role.
The fashion pages of the Telegraph profile David Hieatt, the founder
of Howies and now the owner of Hiut
Denim Co.
Chairman Oliver Stocken is retiring from the board of
Argos and Homebase owner Home
Retail Group. He is succeeded by John Coombe, who is currently a
senior independent director at the company.
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