Mail order specialist Findel reassured the market with a 1 per cent first-half sales increase.

Home shopping sales were down 1 per cent in the period, but the retailer advised that default rates “remain firmly under control and in line with our forecasts”.

The stock has taken a hammering this year on the back of concerns about bad debts, but its educational supplies business gives it strong defensive characteristics.

Numis said buy. “With lower stock commitments and a continued focus on credit scoring, the [home shopping] division remains well positioned,” it said.

The shares rebounded strongly this week ahead of the trading update. House broker Singer said: “We believe the recent rebound should continue following a sharp fall in the last month.”

Topics