While RM were reporting a good set of half-year results, Findel, the educational supplies company, were announcing an amazing set of results for their education business. Like the warning from RM’s CEO, Findel’s CEO had also previously warned shareholders that the education market was likely to be challenging. So it came as a surprise to many when he announced that the education division had achieved record sales - educational sales increasing by 40% to £228.3m.
So where did the huge improvement come from? Part can be attributed two acquisitions made in 2005 and to the government’s continued record spending on education. More importantly investors are now seeing the results of a major restructuring program within Findel’s education businesses that began 12 months ago. At the heart of the restructure was the removal from the education division of the NRS Healthcare business (now a standalone business).
There has also been a revamp of the education division’s senior management team (with Patrick Jolly as CEO and Philip Maudsley as COO), a rationalisation of product lines and an improved focus on financial performance. Also helping improve margins has been Findel’s investment in e-commerce, allowing schools to purchase online. Findel’s education e-commerce site was developed in consultation with the DfES’s Centre for Procurement Performance and the system is compatible with most popular school administration software packages.
