Findel has instigated a full review of its business after losses widened for the group in what it described as a “challenging year”.

Chairman David Sugden has embarked on the review after reporting that losses before tax rose to £76.1m in the year to April 2.

Findel’s home shopping arm reported sales up slightly from £383.7m to £398.3m, but operating profit for the division fell from £34.4m to £30.5m.

The group put the losses down to the tightening of its credit lending business following the difficult economic conditions.

Sportswear offer Kitbag has continued to perform well for the group with sales up 34% to £48.3m for

the year, with growth aided by a partnership with Everton football club last year. The group said that

it is also seeking further clubs to partner with.

Seymour Pierce retail analyst Freddie George said: “Following this update, we are provisionally reducing our 2010/11 pre-tax profits from £23m to £20m.”