Its gift arm, which includes Greetings Direct and Flying Flowers, delivered a weak second-half performance that could not be offset by stronger sales by its other brands. The retailer now said that full-year results are unlikely to hit market expectations.
Group sales in the second half were flat compared with 2006, although internet sales jumped 13 per cent.
Flying Brands chairman Tim Trotter said: “In a very challenging trading environment, we have experienced a series of issues, both internal and external, that has made the second half of 2007 both difficult and disappointing.”
The group said that plans to buy a significant private retail business have had to be scrapped, which will shave a further£750,000 off the retailer’s 2007 profits.
Flying Brands chief executive Mark Dugdale has told the board he wants to leave the company to pursue other interests and it is thought he will leave on or before April 23, the date of its AGM. Dugdale has been chief executive of the group since 2002.
James McMahon has resigned as non-executive director. Former strategy director at West Coast Capital Stephen Cook has been appointed to the board as a non-executive director.