Web sales push up Flying Brands¬í interim results
The interim management statement covers the three months to 1 October 2010.
For the ongoing business as a whole, sales for the period were £5.6m, compared to £5.0m the same period last year. Web sales accounted for 41.2% of total sales, almost double last year's percentage of 21.2%
The Group has also announced the acquisition of 50% of Dealtastic Holdings Limited, a company set up to exploit opportunities in Web retailing and promotional activities.
Sales in the Garden Division for the quarter were £3.1m (2009: £3.1m). The recently acquired Garden Centre Online performed in line with expectations. Web sales in this division increased from £0.65m in 2009 to £1.06m this year representing 34% of total sales (2009: 21%). On a like for like basis web sales increased Web from £0.65m to £0.92m.
The Gifts Division's sales were £2.0m compared with £1.4m in the equivalent period last year.
Web sales in the Gifts Division increased from £0.36m in 2009 to £1.19m this quarter representing 59.4% of total sales (2009: 25.9%). Flying Flowers increased like-for-like web sales from £0.36m to £0.41m, which represented 37.5% of total sales (2009: 25.9%).
Trading conditions in the gardening sector have been tough throughout this year and this has impacted the performance of Gardening Direct.
The improvements made in Flying Flowers and in Garden Bird Supplies should go a long way to making up for the under-performance of Gardening Direct. The company anticipates a much-improved performance in the Gifts Division over the crucial Christmas period.
They say that going forward, recent acquisitions and in particular the strengthening of the Gifts Division should mean that overall group performance is less dependent on the performance of Gardening Direct.
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