West Coast Capital partners Paul Davidson and James McMahon will join the board of Flying Brands as non-executive directors and Newton will leave the company. Fraser will remain chairman until early next year, after which he will step down as chairman and board member. An independent chairman will be appointed.
Davidson said: 'This is a strategic long-term position for West Coast Capital that complements our portfolio of investments. We believe there are clear growth opportunities for Flying Brands and we look forward to working with the management team to support Flying Brands' growth as a public company.'
Flying Brands chief executive Mark Dugdale said: 'We welcome West Coast Capital as a new shareholder and its involvement in our business. It brings with it expertise and a range of opportunities that we believe we can profitably exploit for the benefit of all shareholders.'
Overall trading across the Flying Brands' divisions has been mixed, according to a trading update. The gifts division performed well, benefiting from the successful integration of recently acquired Greetings Direct. However, entertainment was slightly behind plan, and gardening was also trading below expectations, because of the poor performance of some products and the warm weather.
The net effect is that full-year results are likely to be slightly below market expectations of£6million to£6.35 million. However, the company said the figures will depend on the performance of the group during the Christmas period. Early indications put trading in line with management's expectations.
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