Online value retail-to-education business Findel (FDL), geared into the channel switch to the web, has momentum at its heels.

Extending its commercial ties with biggest shareholder Sports Direct International (SPD) could turbocharge its revenue and may even pave the way for an eventual takeover bid.

In a trading update on 6 March, Findel said it was exploring the possibility of further developing joint commercial opportunities between direct mail order arm Express Gifts, a seller of discount clothing, toys and gifts, and Sports Direct.

Mike Ashley’s sporting goods colossus owns 29.9% of Findel, just under the threshold that would necessitate a formal takeover offer.

Commercial tests of Sports Direct-licensed clothing brands on Express Gifts’ Studio.co.uk website have apparently proved successful with the products resonating with value-conscious consumers.

Express Gifts is becoming an online value retailer of real scale, as demonstrated by a record Christmas sales performance and strong Black Friday campaign, with the active customer base growing at a steady clip.

We also note an encouraging turnaround underway at the Findel Education business, now more price competitive thanks to increased Far East product sourcing, while the group’s end of December net debt of £76.7m was down £5.1m from the previous year. (JC)

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