Findel reports strong Christmas trading in retail business

Online value retail and education business Findel issued a trading update covering the 42-week period ended to 19 January on Thursday.

The London-listed firm said its Express Gifts division had a record Christmas sales performance, with momentum built from a strong Black Friday campaign.

Year-to-date product sales grew by 11.0%, in line with the board’s plans.

The active customer base ended the calendar year at 1.8 million, up 15% on the previous year, aided by its strategy of carefully-targeted television and online marketing.

Online ordering levels during the third quarter averaged 72%, up from 65% in the previous year.

“The proportion of credit account customers remained strong, with interest-earning balances ending December up 13.7% on the prior year, positioning the business well for the key upcoming months for financial services revenues and collections,” the board explained in its statement.

“Findel Education continues to see encouraging trends from its turnaround strategy focussed upon increased online trading and price competitiveness,” it added.

The company’s net debt ended December at £76.7m, down by £5.1m from the previous year, despite strong growth in Express Gifts' receivables and outflows from the legacy customer refund programme, which remained on track.

“While early trading in the traditionally quiet month of January has been slightly slower than anticipated, the further strengthening of our online value retail proposition leaves us well-placed against the current consumer backdrop,” the board explained.

“The group remains on track to deliver a full year performance in line with market expectations.”