Findel aims to save £8 million over the next 12 months after
scaling back its warehousing and fulfilment facilities and
disposing of its outlet stores. Sales in the six months to
September 2006 were slightly down though the company announced a
profit before tax of £1.9m, up 31 per cent on last year.
Findel says it has completed the first stages of a strategic
review which included continued focus on its cash with order
business, exit from the clearance stores, rationalisation of the
warehousing facilities and the further consideration of demerging
the company’s two principal divisions. It has also decided to
exit all third party fulfilment contracts. Its newly acquired
businesses have all been performing well, with Letterbox’s sales
up 14 per cent compared with the same period last year, I want
one of those.com and Kitbag.com have seen sales grow by 40 and 30
per cent respectively. Meanwhile it has increased its investment
in the Confetti.co.uk network and now owns a controlling share in
the business. In a statement to the Stock Exchange, chairman
Keith Chapman said that Findel plans to improve Confetti’s growth
curve by introducing a wider product range and contacting
customers more frequently. He also commented that the company was
“convinced that the introduction of new product and
improved service levels” would greatly enhance Kleeneze’s
performance.
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