Share Centre share of the week: Findel
“Findel, the home and school products supplier, is a stock that investors may want to consider this week. It has been in the news recently after reports that Sports Direct, which is controlled by Mike Ashley, has bought large chunk of shares in the group. Investors should be aware that Sports Direct is now the biggest shareholder in the group with an 18.9% stake. Findel also announced an offer from an unnamed third party for its Kitbag online retail business, and those interested will note that the sale is expected to go through subject to contract.
“Full year results back in June gave positive news to investors. Pre-tax profits from continuing operations were up 28% whilst revenues were up 2.8%. While a lot of work has been done to stabilise Findel, there is still a lot to do to reach the company’s full potential. With this in mind we are currently maintaining our ‘buy’ recommendation for investors. This is due to the potential for further growth at the Express Gifts business, the possible resumption of dividends, and the fact that the current valuation does not reflect its potential. We feel that this is a share for investors seeking growth as an objective. Given that this is a higher risk investment, we would recommend that investors drip-feed into the shares following their strong run recently.”