Findel profits soar as online value offer gains followers

28th Nov 2018 09:42

(Sharecast News) - Online retail and education outfit Findel more than doubled its half-year profits on the back of a period of continued progress.The AIM-listed outfit saw revenues rise 1.7% to £228.2m, however, a 72% increase in higher margin digital sales led the group to a 127% improvement in pre-tax profits of £17.1m. Basic earnings per share rose to 15.88p from the 6.96p recorded a year earlier.Net debt was cut 10% to £80.9m.Findel's largest business, Express Gifts, trading as online retailer Studio, continued to show growth in customers and revenue - with an active customer base of more than 1.9m as of 28 September. Studio offers a flexible credit option that enables any cash-strapped customers to spread out the cost of clothing, footwear and toys.The Education arm, which supplies resources to UK and overseas schools, grew its domestic customer base 5% in the 12 months to 30 September 2018 with online ordering levels leaping to 52% from 26% a year ago.Chief executive Phil Maudsley, said: "This has been a period of continued progress and profit growth, driven by Studio's hugely attractive customer proposition as a digital first, value retailer.""More and more new customers are now recognising our incredible value, while our existing customer base is shopping more frequently and across an increased range of products."Looking forward, Maudsley said: "We have been pleased with the start to the second half, buoyed by a record-breaking Black Friday period, and we are well placed as we head into Christmas.""Our expectations for the full year remain unchanged."As of 1120 GMT, Findel shares had picked up 1.78% to 223.92p.Broker N+1 Singer said the company continued to perform strongly against the tough retail backdrop, highlighting the 12% product sales growth at Express Gifts over the last 10 weeks."This, alongside better than expected financial services growth, a stable debtor book, and positive key performance indicators at Education, puts the group well on track to deliver full year expectations and further reduce net bank debt."