Findel sees underlying FY pre-tax profit slightly below consensus

Shares in Findel are down after it warned that, overall, it expects to report a FY pre-tax profit before exceptional items slightly below the bottom of the range of consensus.

It said the pre-tax profit range of consensus forecasts for the 53 weeks to 31 March was £25.5m-£26m.

"Core net debt is expected to end the year at c.£80m, an improvement of around £5m on the prior year and slightly better than market expectations," the company said.

It said Express Gifts had a strong year for customer and revenue growth, while Findel Education had continued to see difficult market conditions for educational resources.

Findel had relocated its head office function to Accrington, from Hyde where Findel Education would remain in situ and a new tenant sought for the vacated space.

"In light of current market rates, and the lease running until 2034, the group anticipates recognising an onerous lease provision of around £8m, which will be recorded as an exceptional item in the current year," the company said.

Looking ahead, Findel said the significant increase in the Express Gifts customer base and the continued investment in customer recruitment activity formed an encouraging base to take into the new financial year.

"We remain watchful of pricing conditions as a result of foreign exchange movements from the perspective of Express Gifts, but look forward to delivering growth in the coming year."

Findel also confirmed it had appointed Phil Maudsley as chief executive with immediate effect. Executive chairman Ian Burke had now become non-executive chairman.

At 10:42 GMT, shares in Findel were down 1.48% to 200p each.