2 Apr 2009 07:00
2nd April 2009
Findel plc
Conclusion of Business Unit Review
The Board of Findel plc, one of the UK's leading Home Shopping and Educational Supplies businesses, today provides an update on a review of some of its business units.
In the Group's interim management statement issued on 17 February 2009, the Board announced that it was reviewing the ongoing viability of The Cotswold Company and Letterbox brands. This review has been completed and the Board has decided that both businesses will be discontinued with immediate effect. In addition, Findel Direct, the central administration functions of our cash with order businesses will be terminated and incorporated into our existing Home Shopping business.
As a result of this decision, trading losses, administration and management costs totalling in excess of £8m will be eliminated from future trading performance. Impairment charges of £9.0m and £8.6m will be written off in the period ending 3 April 2009 for Cotswold and Letterbox respectively. Further asset write downs of approximately £6.0m will be made against Findel Direct. The cash cost of all of these actions will be less than £1m.
Patrick Jolly, Chief Executive said:
"This action is in line with our strategy of improving the cash performance of the business with the aim of helping to reduce debt. We remain confident of achieving our strategic cash generation plans by our target date of March 2011."
Ends
For further information, please contact:
| Findel plc Keith Chapman, Chairman Patrick Jolly, Chief Executive Chris Hinton, Finance Director | T: +44 (0) 1943 864686 |
| Financial Dynamics Jonathon Brill Billy Clegg Caroline Stewart | T: +44 (0)207 831 3113 |