Multichannel retailer Flying Brands has reported pre-tax profit plummeted 53 per cent in its full-year results to £1.5m.

The retailer said revenue fell 7 per cent to£33.6m for the 53 weeks ending January 2, but that like-for-like revenue for the business stabilised in the fourth quarter of 2008, level with the fourth quarter of 2007.

Internet revenue from the Garden Division and Flying Flowers increased 18 per cent to£6.5m, representing 24 per cent of its total revenue.

The retailer suffered an impairment of£11.6m for its Greetings Direct arm, which is being closed, resulting in a loss before tax of£11.7m.
Chairman Tim Trotter said: “2008 has been a very difficult year for the Group. 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 added: “The board fully recognises the unprecedented nature of the challenges that lie ahead and is taking action to reduce its cost base and being smarter with its marketing spend without jeopardising its opportunity of generating profitable revenue. The group is well placed to respond effectively to the current economic climate."

The retailer said group trading for the year to date is consistent with last year and in line with its expectations.