Kleen-e-ze returns to profit

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The Independent Online
KLEEN-E-ZE, the household goods to direct marketing company, recovered in the year to end- August to make pre-tax profits of pounds 86,000 against a loss the previous year of pounds 1.14m, writes Alison Eadie. Turnover was unchanged and there was no dividend.

The extensive rationalisation programme is now complete and the company is left with two core businesses - Kleen-e-ze and Innovations.

Kleen-e-ze, now described as 'catalogue network marketing' but still reliant on a network of door-to-door agents, is growing rapidly. The number of agents and level of sales are both double what they were a year ago. Laurie Todd, finance director, said new agents were being attracted as catalogue marketing provided a good way of earning a living in a recession.

Innovations, the direct mail and retailing operation, saw more sluggish growth because of difficult trading conditions. The retail side, under The Leading Edge and Innovations banners, was still making a loss. Several stores were switched from The Leading Edge to Innovations and the company is looking for ways to reduce the high occupancy costs of its outlets.

Acquisitions are still being sought in mail order to make full use of the customer base and processing facilities.