Findel future ‘challenging’ after accounting irregularities

A “CHALLENGING FUTURE” faces Findel after it was hit by accounting irregularities in January 2010 that forced it to restate results for the previous 12-month period and saw then-chairman Keith Chapman step down.

The group is conducting a “full potential review” of its five arms as a result of recent poor results, after pre-tax profits plummeted to £7m from £11.7m in the year ending 1 April 2011. It will take three years to complete and cost the business £35m, The Telegraph reported.

Findel appeared to be in trouble after it was forced into a rights issue in July 2010, accompanied by a renewal of debt facilities. Chief executive Roger Siddle said: “Given the group’s then level of debt, the terms for these facilities were both challenging in terms of headroom and onerous in their conditions.”

The future is looking brighter now, as its online sports retail business Kitbag has signed a contract with Uefa for the Champions League and European Championships, while buying processes for the education supplies division have been improved and £10m injected to “ease supplier pressures”.

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