Thursday 18 June 2015

Investors see progress in Findel – and it’s still a ‘buy’

Otmane El Rhazi from Mindful Money » Shares.

As home shopping Findel group reports its full year results, Helal Miah, investment research analyst at The Share Centre, explains what they mean for investors…

This morning, home shopping and educational supplier Findel disappointed the market as large exceptional items led to a net loss of £25.3m. However, there was good progress during the year as pre-tax operating profits rose by 28% to £26.5m and operating margins improved to 7.6% highlighting a particularly strong performance from its Express Gifts business which reported sales up by 4.7% to £302m.

Investors should note that the group’s management team see this as another year of progress for the retailer, with further opportunities for growth within its businesses. Findel has been addressing various issues and focusing on cost cutting and improving distribution channels over the last year. The group is also targeting further profitability within its businesses to reduce its core legacy debt.

As the group continues to improve its strategies and results show proof of progress, we continue to with our ‘buy’ recommendation for investors seeking capital growth and willing to accept a higher level of risk.

 

 

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