Findel's (LON:FDL) management team is seeing early success from its self-help measures. While strongly positive interim results are partly the result of timing issues, the underlying point is that sales growth from an early Christmas launch has already been banked, improving visibility. The change of strategy at the Education division is also bearing early fruit, and at 66% online, Studio continues to make steady progress to becoming a fully online retailer. Neither that nor management’s progress on strategy is reflected in a P/E rating of around 10% of pure-play online retailers.
Underlying improvement boosted by timing
H118 pre-tax profit was sharply higher at £11.9m against £1.9m in H117. The increase was largely driven by Express Gifts, trading as Studio, and included timing issues, particularly management’s decision to begin its pre-Christmas campaign in September rather than October. However, a 103% operating profit increase from the Education division also contributed, marking an important early result of the change strategy targeted at restoring Education to a 10% return on sales.
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