Acquisition of GBS-replacemt

30 Sep 2005 11:58

Flying Brands Limited30 September 2005 This announcement replaces RNS number 9921R which was released by Flying BrandsLtd at 07.00 today. The following amendments have been made to the announcement: • Consideration details in the first paragraph • Gross asset details in the third bullet point 30 September 2005 FLYING BRANDS ACQUIRES GARDEN BIRD SUPPLIES LTD FOR £4.3m TRADING UPDATE Flying Brands, the Jersey based multi brand home shopping specialist (ticker:FBDU), today acquired the entire share capital of Garden Bird Supplies Limited("GBS"), one of the UK's leading providers of food and accessories for birds andother wildlife, for a cash consideration of £4.3m. • GBS sells approximately 200 products (65% of which is wildlife food), promoted to customers via mail order catalogues and the internet. • GBS has a database of 486,000 customers, of which 48,000 are active; internet sales account for 17% of total turnover. GBS has strong margins and steady sales across the course of the year with minimal seasonal variations. • GBS is a highly cash generative, profitable business and in the financial year ended 30 June 2005, generated turnover of £3.8m, and adjusted profit before tax of £0.7m (excluding emoluments to shareholders). The gross assets of GBS at 30 June 2005 were £1.0m. • GBS employs nine call centre, finance and administration staff; all other functions, specifically database management, mailing, fulfilment and despatch, are outsourced. • GBS was established in 1994 by founder directors Jonathan Blezard and Tony Bennett. They will continue in their respective positions as directors for the next 12 months. • The UK wild bird food market is estimated at c.£150m p.a. and is growing rapidly benefitting from the public's increasing concern for the environment. The Flying Brands' Board believes that the acquisition of GBS is an excellentstrategic fit and in particular believes that: • It represents an important step in Flying Brands' strategy to enhance and strengthen the Group's product offering to its customers; • GBS will complement Gardening Direct in a new enlarged "Garden" division; • GBS' year round sales performance will smooth the earnings profile of the Garden division; • GBS has significant growth potential. Commenting on the acquisition, Flying Brands' Chief Executive, Mark Dugdale,said: "We outlined our strategy to grow by acquisition and are delighted to haveannounced this second transaction today. Garden Bird Supplies is a high qualitybusiness and its integration into the Group will help smooth out the volatilityof Gardening Direct sales and moreover will be immediately earnings enhancing." Jonathan Blezard, Director of Garden Bird Supplies, commented: "We firmly believe that the potential to accelerate the development of GBS lieswithin a larger diversified group. Flying Brands has a quality management teamwith proven direct marketing expertise and focused strategy. We are delighted tobe part of the enlarged group and look forward to growing the business." Trading update Current trading is in line with market expectations for all brands, following athird quarter that is on target to date. Silverminds Direct, the assets of whichwere acquired in April 2005, is performing well, with full integration completedsuccessfully. 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 shoppingspecialist. 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, 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 Exchange