Ceo to quit as Flying Brands issues profit warning
Published: 18 January 2008
Jersey-based home shopping group, Flying Brands, has issued a profit warning and announced the imminent departure of its chief executive.
The company, which includes UK mail order bedding plants and gardening products supplier, Gardening Direct, says total sales for the second half of the year were flat and added that full year trading results are likely to be below market expectations.
A bright spot, however, was internet sales, which saw a 13% increase.
Worst hit was its Flying Flowers brand, which had a disappointing Christmas in the aftermath of the disruptive postal strike.
Chief executive of the group since 2002, Mark Dugdale, has announced that he is to leave the company to pursue another interest in the private sector.
James McMahon has also decided to resign as non-executive director.
Flying Brands said it had abandoned plans to acquire a private retail business – a decision which has cost it around £750,000.
It added that the group's priority is to now invest in growth and managing the cost base. The group is to invest £2m in its core businesses, including Gardening Direct.