Last checked at 22 May 2012 11:15
22 May 2012
FLYING BRANDS LIMITED
Trading Update
As announced on 1 May, we have now completed the disposals of our Gifts Division and of the Garden Bird Supplies, Garden Centre Online and Listen2 businesses ( together the "Sold Businesses").The business of the Group now comprises the Gardening Direct retail business, the Growing and Live Despatch business (GLD) and the freehold property at Retreat Farm. We are reporting today Group orders for the three month period to 31 March 2012 and for these purposes the Gardening Direct retail business and GLD are grouped together as the "Garden Division".
Overall Group Orders for the period to 31 March 2012 were £7.0m (2011: £10.8m). Orders for the Garden Division for the period were £3.8m (2011: £5.5m). Orders for the Sold Businesses for the period were £3.2 m (£5.3 m).
The Garden Division continues to face a number of challenges. The gardening industry generally this year has suffered as a result of a combination of poor weather and the continuing uncertain consumer outlook. In addition, we and our principal competitors have suffered as a result of the abolition of Low Value Consignment Relief earlier this year. We believe that the resulting increase in prices did have the effect of reducing demand and we, along with most of our competitors, have had to respond by reducing prices in the latter half of the season.
Our restructuring programme to cut central overheads, announced with our annual results on 30 April, is proceeding according to plan. We are continuing discussions with a number of prospective purchasers of our gardening businesses and will provide an update when appropriate.
For further information, please contact:
Flying Brands Limited 01245 228 300
Stephen Cook, Chief Executive
Stuart Dootson, Group Finance Director
Smithfield Consultants 020 7360 4900
John Kiely