22nd Jan 2007 07:02
Flying Brands Limited22 January 2007 22 January 2007 Flying Brands Limited Trading Update Flying Brands, the Jersey based home shopping group, is today providing anupdate on its trading performance during the second half of 2006. On 29 November 2006, we commented that trading had been mixed, with the Giftsdivision performing well and the Garden and Entertainment divisions tradingbehind plan. We also stated that the final outcome for the year would depend onthe performance of the Group during the important Christmas period. This pattern has continued over Christmas with the Gifts division tradingpositively: Flying Flowers' sales were ahead of internal forecasts, but both theGarden and Entertainment divisions performed behind plan as a result of low newcustomer recruitment and the continued warmer weather. Total like for likeinternet sales over the Christmas period, however, improved by 31% for the wholebusiness over the same period last year, demonstrating the success of our onlinestrategy. As a consequence of the weak performance primarily of the Gardendivision, it is likely that our full year results, before non recurring items,will be marginally below the guidance given on 29 November 2006. The nonrecurring items, which have been reported previously, relate to therestructuring of the Board, and the reorganisation and integration of GardenBird Supplies. Overall, second half sales for the group were 19% ahead of last year, althoughlike for like sales were 5% behind the same period in 2005, reflecting thedifficult trading conditions of the Garden division in the autumn as we havepreviously reported. Greetings Direct, acquired in September 2006, is trading inline with our expectations. We are accelerating product expansion within the Garden division to reduce ourreliance on the volatile bedding plant sector, and we are merging Listen2Booksand Silverminds with effect from February 2007 to create a unified entertainmentbrand with a single database of customers. Commenting on the trading performance, Mark Dugdale, Chief Executive, said: "Our strategy of growth through careful acquisition is working well, with GardenBird Supplies now fully integrated and Greetings Direct having made a promisingstart. We are also working hard on increasing our internet development whichwill deliver further growth in 2007, but we have some challenges in both ourGarden and Entertainment divisions which we are addressing urgently." Outlook The Group enters 2007 in a strong position with its expanding portfolio ofbrands ensuring it is well placed for future growth. We anticipate strongperformances from our recent acquisitions as we continue to integrate them costeffectively into our infrastructure. The current year will also see asignificant increase in distribution costs, principally from Jersey Post, and itis likely that we will have to absorb some of the costs ourselves. Flying Brands' proven strategy of maximising value from its strong cashgeneration will continue through 2007, with increased investment in onlinedevelopment and further diversification to increase spend from its database of 5million households. We will continue to make appropriate acquisitions when theright opportunities arise, with a focus on earnings enhancement. The Board istherefore confident in the future performance of the group. Flying Brands intends to announce its preliminary results for the year to 29December 2006 on 16 March 2007, with the Annual General Meeting being held on 17April 2007. The final dividend will be paid on 25 April 2007 to shareholders onthe register as at 30 March 2007, with the shares going ex dividend on 28 March2007. For further information, please contact: Flying Brands Limited 01376 575 010 / 07785 346 935Mark Dugdale, Chief ExecutiveGraham Norton, Finance Director Smithfield Consultants 020 7360 4900John KielyGeorge Hudson Notes to editors Jersey based Flying Brands Limited (LSE: FBDU) is a multi brand home shoppinggroup. Founded in 1981, it was admitted to the Official List of the London StockExchange 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) • Entertainment (Listen2Books, the leading mail order audio books, DVD and video publisher and distributor; Benham, the first day cover stamps and coins collectables specialist; Silverminds Direct, the nostalgic music business) More information can be found at: www.flyingbrands.com This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
IQ-AI