Home shopping group Flying Brands reported sales from its ongoing business rose 12% to £5.6m in the three months to October 1.

Despite an improvement in web sales, there was a 4% decline in like-for-like sales at its garden division, which was affected by difficult trading conditions in its bedding plants business.

Sales at the gift division were up 42% to £2m for the period, but that was “slightly behind expectations” because of disruption of business at Flowers Direct, which it bought out of administration.

Matthew McEachran, analyst at house broker Singer, is cutting his forecast for this year by £150,000 to £175,000. This “reflects the sales shortfall in Gardening Direct, which has not quite been offset by good performances in Garden Bird Supplies and Flying Flowers”, said McEachran. He said: Management are actively addressing issues and the overall group transformation looks on track for 2011.”

Flying Brands has also acquired a 50% stake in web business Deal­tastic as part of its “continuing efforts to put the web at the heart of our business”, said chief executive Stephen Cook.