Home shopping group Findel has reported a loss for its first half but the retailer said it is confident its cost savings should help it to generate profit.
Findel reported a benchmark loss before tax of £8.1m for the six months ending October 3, against a profit in the previous year of £6.9m. The statutory result for the period was a loss before tax of £21.1m against a profit in 2008 of £1.8m – the retailer said the difference between the benchmark and statutory result principally relating to the £11.9m fees arising from its debt refinancing.
Group sales for the six months were £277.2m, down slightly on 2008 of £287.7m.
Findel chairman Keith Chapman said: “The Group’s focus remains firmly on cash generation and the further reduction of bank debt. However, with substantial headroom against our banking facilities over the next two financial years the Group is again in a position to manage its portfolio of businesses to optimise shareholder value.
“Whilst the Board remains cautious regarding economic conditions the Group’s ability to generate profit should be greatly enhanced by the cost saving actions we have taken and continue to take.”