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Some turbulence for Flying Brands
Archived article dated Friday March 13th 2009
Lower revenue from flowers on Mother's Day and higher operating costs impacts on the multi- channel retailer's results.
For the 53 weeks ended 2 January 2009, revenue decreased by 8% to £42.5m (2007: £46.3m) and revenue from the ongoing business decreased by 7% to £33.6m (2007: £36.1m).
Profit before tax for the ongoing business decreased by 53% to £1.5m (2007: £3.2m)In July 2008 the group announced the decision to close the Greetings Direct part of the business.
The company says that despite the poorer than expected trading, progress has been made in transforming the business away from being a pure-play catalogue business to a multi-channel retailer with internet revenue now delivering 20% of revenue from on-going business, compared with 16% in 2007.
Commenting on today's announcement, Tim Trotter, Chairman, said, “2008 has been a very difficult year for the Group. The current economic crisis will have an impact on the Group, its customers and suppliers, but it is too early to be precise about the scale and duration of these effects. The Board fully recognises the unprecedented nature of the challenges that lie ahead, and is taking action to reduce its cost base and being smarter with its marketing spend without jeopardising its opportunity of generating profitable revenue. The Group is well placed to respond effectively to the current economic climate.”
Tagged as: flying brands
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