Losses before tax at home shopping group Findel rose to more than £76m in the year to April 20, 2010.

David Sugden, who joined the Burley-in-Wharfedale-based group as chairman on April 1, said it had been a challenging year.

Sales from the group’s operations were down by four per cent to £547m, with benchmark operating profits reduced to £36,2m compared with £48.4m the previous year.

Pre-tax losses rose from £57.4m to £76.1m Mr Sugden said the trading performance, with the exception of the educational supplies division, was “creditable” in a difficult economic environment The discovery of unsub-stantiated accounting entries in the education division led to corrective action being taken, including restating the company’s 2008-09 results.

Mr Sugden, said: “The past year was undoubtedly a challenging period for the group.

“Since being appointed chairman, we have instigated a full review of all the group’s continuing operations, with the intention to complete this review as quickly as possible so we can return the group to profit.

“Despite the many distractions and the uncertain economic backdrop, performance in the first quarter of the year has shown resilience, although the key peak trading periods for both our home shopping and education supplies businesses are still to come.”

Sales in Findel’s home shopping division remained at £345.1m while sales by its direct Kleeneze direct selling brand fell from £65.1m to £62m.

The Kitbag division increased sales by 34 per cent from £36m to £48.3m – due mainly to a contract with Everton FC.

Sales in the education supplies division fell to £138.4m from £162.3m.

Findel has also announced that Tim Kowalski will be joining as finance director in August to take over from Chris Hinton, who is stepping down after three years.