Findel : Trading Statement

17 October 2018

Findel plc ('Findel' or 'the Group')

Trading Statement

Findel, the online value retailer and education supplies business, gives the following post-close trading update ahead of its interim results announcement on 28^th November 2018.

Express Gifts, trading as 'Studio', is the Group's largest business and grew revenue by 8% in the first 28 weeks of the year (a period which takes into account the changes to marketing activities across the half-year in 2017 due to the implementation of the Financier platform in early October 2017). Whilst growth in Q2 was slower than Q1, we have seen a much stronger response from customers in recent weeks as we start the peak trading period ahead of Black Friday and the Christmas period. Our expectations for full-year progress on revenue, margin and profit remain unchanged.

Education has continued to make good progress with its operational turnaround. Its core UK customer base has grown by 4% over the last year, driven by its online value proposition which has seen online ordering levels rise from around 20% in September 2017 to over 55% now. Our full-year profit expectations for both Education and the Group as a whole remain unchanged.

Core net debt for the Group at the end of September 2018 was c.£81m, being c.£9m lower than September 2017, and our expectations for net debt at the year-end remain unchanged. We are also approaching the end of our legacy customer redress programme, which continues to perform in line with existing provisions.

Enquiries

Findel plc

Stuart Caldwell

Phil Maudsley

0161 303 3465

Tulchan Communications LLP

Catherine James

Will Smith

020 7353 4200