Published on 16 - March - 2007
Flat profits for Flying BrandsCosts on the rise; online presence to grow
Jersey-based home shopping group, Flying Brands has said its full-year pretax profit for 2006 remained flat at £5.3m on sales that rose 17% from £36.3m to £42.4m in 2006.
Chairman, Paul Fraser said the strong performance from acquisitions, including Greetings Direct, and the internet were 'very encouraging' and helped offset weak trading in the autumn from Gardening Direct.
He now expects the garden division's widening product range means it is 'well placed for future growth'.
However, the group warned that higher delivery costs, principally from Jersey Post and Royal Mail, would hit 2007 earnings. It is now contesting the rises, although increasing prices on some product lines.
The group said it has made a strong start to 2007 and is developing its internet sales channel to appeal to younger customers. Internet sales rose 31% to £5m in 2006. Flying brands has a database of 50-plus customers, where it is finding it 'difficult' to grow the number of active purchasers.