Profits down at Findel

SHOPPING to education group Findel warned it will report lower than expected profits as it continues its review into accounting entries at its educational supplies division.
By The Newsroom
Published 23rd Apr 2010, 10:57 BST

The group said benchmark pre-tax profits will be lower than expected at between 16m and 17.5m.

The educational supplies division has been hit by a decline in sales in a difficult market environment and a more prudent approach following the review of accounting entries announced last month.

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The group said that its home shopping sales have held up well thanks to its new clothing range.

The Burley-in-Wharfedale company added that default levels have also improved due to the implementation of tighter credit management.

In the year to April 2, the group expects sales to show a one per cent improvement to 582m.

It said the trading performance of each of the home shopping divisions - with the exception of Webb Ivory - and healthcare divisions were in line with expectations.

The benchmark profits exclude exceptional charges.

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In addition to the 12m of fees arising from the group's refinancing, the results will include intangible impairment charges of approximately 61m in respect of IWOOT, Confetti and Webb.

They will also include 8m of onerous lease provisions in respect of properties vacated and general restructuring charges of 12m.