Retailer in the news: Express Gifts boss Philip Maudsley

Findel’s Express Gifts managing director Philip Maudsley has kept a low-profile during almost three decades in retail, but he has been the steady hand that has navigated the retailer through turbulent waters.

He took on the role of permanent chief executive of Findel in November 2009 at a time when no one else would.

The company - which comprises the Express Gifts business, Kitbag and an education arm among others - became embroiled in a scandal when a fraud involving international contracts in the education business was discovered.

Maudsley says changes have been made subsequently, including moving away from international contracts.

But what impact did the fraud and the refinancing that followed it have on Maudsley? “When walking the shopfloor, with staff saying to us are we going to be okay, are we going to be able to continue paying our mortgages, are our jobs safe, that focuses the mind because you’ve got a responsibility to those 1,100 staff,” says Maudsley.

When the dust had settled Maudsley was happy to step aside for Roger Siddle to take over as Findel boss. But he clearly relishes his current role. It is his leadership of Express Gifts that in the first half of this year propelled Findel to its first profit for six years.

“I am 54 and God willing I will see out my career at Express Gifts,” says Maudsley. “I have been here 27 years and I will do it as long as I enjoy it.”
Was it still enjoyable at the time of the fraud? “You never stop enjoying it but one thing I will say is it was certainly a learning experience,” says Maudsley.

A critical part of the business

Maudsley is the only surviving member of the old Findel executive team and Cantor analyst Freddie George believes the decision to keep him on was wise.

“Roger Siddle wanted to retain some good people and saw him as a critical part of the business going forward,” says George.

“He has created momentum in the business through initiatives including broadening the range to leisure apparel and strengthening systems.”

Maudsley says Express Gifts is now entering the “second chapter” of a turnaround plan.

The business’ second chapter is being built on broadening its offer and will primarily be driven by the push into clothing.

“We have got half of our customers buying clothing and 70% of those are buying branded clothing,” says Maudsley. “We only recruit customers into the business from July to the end of October but expanding the clothing offer will allow us to recruit customers all year round.”

Express Gifts’ branded offer at present consists of tertiary brands, but Maudsley says the retailer is in conversations with high street brands.

“Our customers are very aspirational, so we need to move into those brands,” he says. “We see it as an opportunity to increase the average spend and [encourage people to] shop on a more frequent basis with us.”

The bold plans have been made possible by the solid growth overseen by Maudsley at Express Gifts.

Express Gifts accounts for 60% of sales and around 90% of profits and is propping up the other businesses in the Findel group, which are all struggling at the moment.

In the three years since the refinancing Express Gifts has recorded a sales uplift of 35%, an operating profit increase of 92%, grown its customer base 20%, improved sales per customer 23% and reduced debts by 32%.

Is it time for Maudsley to kick back and relax and take up  horse riding again, a hobby he has let lapse because of a lack of time? Not a chance.

“I am already proud of what we’ve achieved and I’m hell bent focused on continuing what we’ve achieved in the last three years,” he concludes.