LONDON (Alliance News) - Flying Brands Ltd Tuesday said it swung to a loss in its last financial year as revenue declined, having sold off a majority of its businesses the prior year.
The group was previously a multi-brand, multi-channel home shopping specialist made up of three divisions: garden, gifts and entertainment. However, in 2012 it sold the divisions to focus on its Retreat Farm site in Jersey. It is now currently leases out various sites within Retreat Farm, but is considering its options for that business too.
"We now have a preferred option for Retreat Farm and are in discussions with a number of interested parties... There is no guarantee that these plans will come to fruition and we remain open to the possibility of an outright sale of the property," the company said in a statement.
Pending the development of the property, the group said it has agreed to lease the greenhouses and dispatch centre to Jersey Choice Marketing Ltd until June.
For the year ended December 27, 2013, the group reported a net loss of GBP1.3 million, compared with a GBP102,000 profit the prior year, which was supported by a GBP2.2 million profit from now discontinued operations, including its garden, gifts and entertainment businesses.
Revenue for the year was GBP78,000, down from GBP105,000 a year earlier, as the group's only income currently only comes from the rental of the sites within Retreat Farm.
The group said it has settled its dispute with Flying Flowers Pty Ltd in order to avoid hefty legal expenses.
It also said it is in advanced settlement discussions with Jersey Choice Marketing Ltd regarding the payment of the outstanding deferred consideration of GBP375,000 for the Gardening Direct business it sold. It said it still believed the matter can be resolved without litigation.
Flying Brands shares were down 4.8% at 2.95 pence Tuesday afternoon.
By Rowena Harris-Doughty; rowenaharrisdoughty@alliancenews.com; @rharrisdoughty
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