Findel focused on cash as sales slide continues

The Burley-in-Wharfedale company said like-for-like sales for the 39 weeks to the start of January were three per cent below the same period a year earlier.

Like-for-like sales in its home shopping arm were flat. Within this, its credit arm grew sales by two per cent, helped by demand for its expanded clothing range. However, Findel said revenue from its financial services arm were 10 per cent down on last year, after a decision to tighten credit requirements and focus on customers with good credit ratings.

Sales in its Kitbag ordering arm remained strong at over 35 per cent ahead of last year but trading conditions in Confetti and I Want One Of Those.com remain "challenging".

Findel's education supplies arm struggled with sales down 12 per cent, hit by falling export and project sales. Since the start of the month, Findel added school closures due to the snow storms have affected sales.

The group said in the light of this performance, it continues to cut costs in this division, and has already made 6m annual savings.

"We have also put in place several key sales initiatives which we believe will return the division to like-for-like revenue growth by the second half of the next financial year," it said.

Findel added: "The group's primary objective is to generate cash and we remain on track to achieve our debt reduction target for the year ending 2 April 2010.

"In parallel, our programme of cost reduction and planned efficiencies across all group companies has to date achieved 15m of annualised savings with a further 10m already having been identified and being progressed. These savings will be the cornerstone of the group's ability to generate improved results in the future."