IQ-AI Regulatory News (IQAI)

28 Jan 2005 09:00

Flying Brands Limited28 January 2005 Flying Brands Limited Trading Statement 28 January 2005, Jersey, Flying Brands is today providing an update on tradingfor the year ended 31 December 2004. Overview The Company has enjoyed a good performance overall for the year and hasbenefited from the actions that the management has taken to improve theefficiency of the business and revitalise its brands. Christmas trading has beendifficult for the Flying Flowers brand, but the Board anticipates that theCompany will still report double-digit earnings growth for 2004 and that it willmeet market expectations, albeit at the lower end of the range. Cash generationcontinues to be very good, as does online sales growth. Business by business highlights (annual basis) Gardening Direct: Sales overall were up on the year as a result of a number ofnew initiatives, including new product lines, price reductions, an improvedcatalogue format and successful reactivation of lapsed customers, all of whichshould help drive the brand forward in 2005. Flying Flowers: The strategy in 2004 focused on re-positioning the brand as amajor player in the low cost gift arena. After a strong H1, Flying Flowers, incommon with much of the retail sector, saw more difficult trading conditions inthe run up to Christmas, despite a late sales rally. The new gift categories,however, such as pot plants and teddy bears, tested well and will be rolled outin 2005. Listen2Books: The focus in H1 was to develop the product range and improvecustomer spend. Trading was consistently buoyant through H2, culminating in astrong Christmas performance, with sales driven by a steady stream of newproduct introductions, offering CDs as an alternative format to cassettes (whereavailable), and a promising trial of video and DVD titles tailored to the tastesof our database. These will be rolled out in 2005. Benham: Although remaining highly cash generative, Benham was unable to matchthe success of 2003, despite a full H2 programme. We are developing a newproduct strategy for this brand, which, together with a successfully implementednew operating system, should propel the brand back to growth in 2005. Flying Brands intends to announce its preliminary results for the year to 31December 2004 on 11 March 2005. For further information please contact: Flying Brands Limited 01376 575 010Mark Dugdale, Chief Executive Smithfield 020 7360 4900Nick BastinGeorge Hudson Notes to editors Jersey based Flying Brands Limited (LSE: FBDU) is a leading Home Shoppingcompany. Founded in 1965, it was admitted to the Official List of the LondonStock Exchange in 1993. The Group has the following brands: • Flying Flowers, the UK's largest flowers by post brand, despatching nearly one million bouquets a year• Gardening Direct, one of the UK's largest mail order bedding plants and gardening products operations• Listen2Books, the leading mail order audio books distributor• Benham, the first day cover stamps and coins collectables specialist More information can be found at: www.flyingbrands.com This information is provided by RNS The company news service from the London Stock Exchange