29 September 2004
Immediate Release 29 September 2004
AGM Trading Update
At the Annual General Meeting to be held at noon today, William Rollason, Chief
Executive of Kleeneze plc ('Kleeneze' or the 'Group'), the home shopping
specialist, will give the following trading update:
Sales at Kleeneze UK for the first four months of the financial year are ahead
of last year and in line with expectations. Distributor numbers are stable and
we are continuing to see an increase in the Average Sales Rate (the average
period sales per ordering distributor) as our re-designed catalogues are being
well received by customers. This follows a 20% increase in the last financial
year. We have increased the size of our Christmas catalogue and have also
doubled the size of our Halloween catalogue following its successful launch last
year. As part of our ongoing strategy to add higher value branded goods to our
product range we acquired in September for £0.4 million in cash the Cabouchon
costume jewellery business which we are re-launching.
Our Dutch operation, representing the Group's expansion into Continental Europe,
began trading in September. We have surpassed our target of 1,000 distributors
and recruitment remains strong.
Farepak is trading in line with expectations. We are actively addressing our
cost base and making a dedicated move to increase further the percentage of
sales from shopping vouchers, which currently stands at approximately 76%. We
have launched a new range of shopping vouchers for Christmas 2005 aimed at the
younger market, which we believe will re-stimulate demand for our vouchers.
Expansion into Television Shopping
We have also announced today the Group's investment in a television shopping
channel carried on Sky channel 664. Full details of this investment are set out
in a separate announcement issued this morning.
We are optimistic about the Group's growth opportunities including those coming
from the new initiatives, Continental Europe and television shopping. Overall
we remain confident of achieving our expectations for the current year.'
Kleeneze plc 01793 606 000
W P Rollason - Chief Executive
C J S Hulland - Finance Director
Buchanan Communications 020 7466 5000
This information is provided by RNS
The company news service from the London Stock Exchange