Pre-tax profits at home shopping specialist Flying Brands’ ongoing operations plummeted 53 per cent to £1.5m last year.

The Jersey-based retailer had a turbulent year, in which it decided to shut its Greetings Direct business, triggering a loss before tax of£11.7m in the 53 weeks to January 2.

Flying Brands chairman Tim Trotter said: “2008 has been very difficult. The current economic crisis will have an impact on the group, its customers and suppliers, but it is too early to be precise about the scale and duration of these effects.”

He said Flying Brands is well placed to respond effectively to the economic climate.

The retailer reported that it had arranged to have its overdraft facility reinstated to£500,000 and its loan facility covenant requirements relaxed. Trotter said: “This provides the group with the ability to meet its day-to-day working capital requirements for the foreseeable future.”

Flying Brands directors hope they will face less turmoil this year after the business lost its second chief executive, Tricia Killen, in less than 12 months. Killen was replaced by non-executive director Stephen Cook.