21st Oct 2008 14:11
21 October 2008
Flying Brands Limited ('Flying Brands' or the 'Group')
Interim Management Statement for the three months to 26 September 2008
Flying Brands, the Jersey-based home shopping group, is today issuing an Interim Management Statement for the three months to 26 September 2008.
In the Trading Update released in September 2008, the Group explained that a series of recent adverse events had had a material impact on year-to-date trading and that management had responded with a number of actions to mitigate this shortfall in performance for the full year. These actions are progressing well and October trading is on forecast.
Sales for the three months for the whole Group were £7.5m (2007:£9.3m) and consistent with our expectations at the time of our recent Trading Update. Excluding the Greetings Direct business that is being closed down, sales for the three months were £5.6m being £0.9m down on those for the comparable period in 2007, around £0.3m of which is explained by timing.
The Garden Division's sales were down by £0.6m. £0.2m due to timing and the remainder due predominantly to the poor weather in August.
The Entertainment Division's sales declined by £0.2m as a result of a planned reduction in loss-making recruitment activity for Listen2 and a timing issue for Benham due to a delay by the Royal Mail in issuing their Olympics first day stamp covers.
Flying Flowers' sales were lower by £0.1m.
In terms of the financial position, net debt within the Group at 26 September was £4.8m. The Group continues to pay down this debt on schedule and to enjoy a good relationship with its bank.
Tricia Killen, Chief Executive, commented:
"The mitigating actions, outlined in the recent Trading Update are progressing well and we are seeing improved response rates from our revamped promotional mailings.
From the beginning of this month, we have increased the selling price of selective Garden Bird Supplies products to offset rising ingredient costs and, in the first two weeks, our sales have been significantly higher than for the same period last year. We are confident that our projected gains from these price increases will be achieved.
This week, we are also implementing selective price increases across the Flying Flowers business to compensate for rising product costs. Our pricing remains very competitive versus others in the marketplace.
New Christmas catalogue campaigns have been developed for the significant active database of non Flying Flowers customers, who would not normally receive Christmas offers from Flying Brands and the first of these catalogues will be mailed this week."
For further information, please contact:
Flying Brands Limited 01245 228300
Patricia Killen, Chief Executive
Graham Norton, Finance Director
Smithfield Consultants 020 7360 4900
John Kiely
Notes to editors
Jersey based Flying Brands Limited (LSE: FBDU) is a multi brand home shopping group. Founded in 1981, it was admitted to the Official List of the London Stock Exchange in 1993. The Group operates the following divisions:
* Gifts (Flying Flowers, the UK's largest flowers by post brand, despatching nearly one million bouquets a year; Greetings Direct, the UK's only continuity greeting cards business)
* Garden (Gardening Direct, one of the UK's largest mail order bedding plants and gardening products operations; Garden Bird Supplies, a leading provider of food and accessories for birds and other wildlife; Sarah Raven's Kitchen and Garden for hard to find plants and household accessories)
* Entertainment (Listen2, the leading mail order audio books, DVD and video publisher and distributor; Benham, the first day cover stamps and coins collectables specialist)
More information can be found at: www.flyingbrands.com
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