Home shopping group Findel expects full-year profits to come in £7m below its expectations after contract delays at its educational division and accounting changes.
The retailer, which is conducting a strategic review, reported that it would be “prudent” to assume that some education contracts worth £3m will now fall within the next financial year.
A similar approach has been taken to accounting for non-trading items including property profits, pensions and foreign exchange, which will lower earnings by £4m.
Findel will post interim results at the end of November, and expects profits to be up on last year. The retailer said that as Christmas approaches “it is too early to be definitive about the performance through the key period” but customers of its main catalogue are “responding well” to current offers.
Seymour Pierce analyst Freddie George said Findel “remains firmly in the intensive care room” and cut his forecast by 25% to £15m.
He said: “It is encouraging to see that half-year profits will ahead of the previous year but disappointing to see further changes in accounting approach will leads to reductions in internal forecasts.”