LONDON (Alliance News) - Flying Brands Ltd Wednesday said it narrowed its losses in the first half, as it continues to pursue options for its freehold farm property in Jersey, including a possible sale before planning permission for further development is received.
The former multi-channel home shopping specialists posted a pretax loss of GBP302,000 for the 26 weeks ended June 27, compared with a GBP435,000 loss year earlier, even though revenue fell to GBP26,000 from GBP50,000.
The primary focus of the group since the disposal of its operating divisions in 2012 has been the maximisation of the long-term value of Retreat Farm. The farm is a freehold property based in Jersey with greenhouses and a plant despatch facility.
Flying Brands said it has continued its discussions with the planning authorities on the development of Retreat Farm. However, it said these pre-application discussions have indicated that obtaining planning permission for the development of this property is likely to be more difficult and protracted than had been anticipated.
"Given the group's limited financial resources and following approaches from parties interested in acquiring the property, the board has instructed local property agents to explore a possible sale of the property and will make a decision as to how best to proceed when that exercise has been completed," the company said.
This is expected to be by the end of September, Flying Brands said.
In addition, Flying Brands said it has agreed in principle a settlement with Jersey Choice Marketing Ltd regarding the payment of the outstanding deferred consideration for the Gardening Direct business and Jersey Choice's warranty claim arising out of the same transaction, with no further sum being due to or by either party.
As part of that settlement, Jersey Choice has agreed to extend its lease of the greenhouses and despatch centre at Retreat Farm for a further year.
"The settlement proposals are currently being documented and the directors anticipate finalising the settlement by the end of September 2014," the company said.
Flying Brands shares were quoted down 5.4% at 2.01 pence Wednesday morning.
By Anthony Tshibangu; anthonytshibangu@alliancenews.com; @AnthonyAllNews
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