The Group announced double digit growth in customers and revenue in Express Gifts, their largest business.
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Findel Group (LON: FDL) has reported a good start to FY18, with both its Education and Home Shopping businesses trading in line with expectations in the 20 weeks to 18 August. The trading update was released this morning ahead of its AGM later today.
The statement noted double digit growth in customers and revenue growth in their largest business, Express Gifts, and Findel Education has reported an improved performance in recent weeks, following a difficult start to the year, and is making good progress on the various pricing and cost initiatives designed to increase its profitability.
Singers released a note detailing their take on the trading update, with their prediction of a positive response by the market ringing true with shares currently trading up around 10% this morning.
The positive response is welcome news to the Group after seeing its shares gradually fall by a quarter since January after poor trading in Findel Education earlier in the year.
Singers forecasts remain unchanged, which assume 20% YoY EPS growth. Today’s update "clearly increases confidence that these forecasts can be delivered" the note also said.
Findel currently trade at a PE ratio of 7x against an industry median of 13x. Revenue for the Group has plateaued over the past few years, whilst operating profits have suffered against difficult market conditions falling from their peak of £15m in 2014to a loss of -£51m in 2017.