Flying brands grounded in spring

Home shopping retailer Flying Brands suffered from poor spring trading, resulting in disappointing figures for the first half of the year. The retailer said sales for the 26 weeks to July 1 fell 9 per cent to£18.2 million. Profit before tax plunged from£3.9 million in the same period of 2004 to£2.9 million, a fall of 27 per cent.

However, the retailer said summer trading had picked up and all brands are now on track. Chief executive Mark Dugdale said the group had to cut costs to make up for the disappointing first quarter and was able to defend its position if the market continued to be depressed. The retailer has a healthy war chest and Dugdale said that he was on the look out for acquisitions at the right time and price.

He said: 'Our strategy of developing the portfolio of existing brands and acquiring suitable businesses remains robustly in place. We are addressing the volatility of performance in Gardening Direct and we recognise the need to widen the franchise for this brand.'