Findel posts surge in full-year profit as it unveils name change
Home shopping company Findel has posted a sharp rise in profit and unveiled a new brand name, just weeks after it fended off a takeover bid from major shareholder Sports Direct.
Pre-tax profit jumped 33 per cent to £29.4m in the year to the end of March, while revenue rose 5.7 per cent to £506.8m.
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Findel said its performance had been driven by growth in customer numbers, sales and profit in Studio, its online discount retail division.
The London-listed firm revealed plans to change its name to Studio Retail Group in a bid to raise the profile of the Studio brand.
The overhaul comes amid a tussle with Mike Ashley’s Sports Direct, which is Findel’s largest shareholder.
Earlier this year the tracksuit tycoon increased his stake in the firm to more than 30 per cent, forcing a mandatory takeover bid.
But Findel’s board rejected the £139m offer, which it said “significantly undervalued” the company, and the bid lapsed.
In a review published alongside the results, chief executive Phil Maudsley said the firm had also scrapped plans to roll out a menswear range with Ashley’s retail empire.
But he said the company will continue to explore potential for access to other Sports Direct-owned brands.
Findel also posted a rise in sales for its education division, which supplies teaching resources for nursery and primary schools.
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“These strong results reflect the clear transformation of the group into a digital-first, value led retailer,” said chief executive Maudsley.
“We look ahead with confidence and ambition, as shown by our proposed name change to Studio Retail Group. We remain focused on our customers’ needs, and our investment in digital technologies and delivering on our strategic objectives will underpin profitable growth over the medium term.”