You are here: Home - Investing - Experienced Investor - News -

Stock of the week: Findel

0
Written by: YourMoney.com
11/06/2018
Ian Forrest, investment research analyst at The Share Centre, picks Findel as stock of the week this week.

Home shopping and education supplies group Findel has expressed confidence in its ability to capitalise on any opportunities for profitable growth.

There has been a focus within the group to cut costs and improve distribution channels and this has proved a success as recent results reported a pre-tax profit of £22.1m, an impressive improvement from the pre-tax losses of £59.4m reported in 2017.

Its Express Gifts business remains the main driver of growth with a 9.6% increase in product revenue growth last year. The growing customer base has resulted in an increase in online orders, with its clothing business particularly enjoying an upsurge.

The Education business continues to improve and the market particularly noticed the positive tone in comments on the outlook for the new financial year. However, investors should be wary of the persisting pressure on school budgets which may continue to hamper attempts to turn around the education division.

The shares have made a good start to 2018 but continue to trade on a 2020 PE of just 9.5, which is relatively low compared to other retailers with mostly online sales. The price-to-book value of 1.5 times is about average relative to peers and Findel is expected to see earnings growth over the next two years at least.

We retain our ‘buy’ recommendation due to the potential for further growth at the Express Gifts business. There are better signs within Education but there is clearly some way to go to return that side of the company to strong growth so the shares are suitable for higher risk investors.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

The essential Your Money guide to the April 2018 tax changes

As we head into the 2018/19 tax year, a number of key changes take place to existing policies while some new i...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

YourMoney.com Awards 2018

Now in their 21st year, our awards recognise the companies offering the best products and services to consumers

Money Tips of the Week

Read previous post:
supermarkets
Living near a supermarket could add £21,500 to your house price

Living near a supermarket can push up your property’s value by £21,500, but it’s not just premium brands. It also...

Close