31/07/2001
Although interim results revealed a 26% increase in pre-tax profits to £2.9m, the board of mail order business Flying Brands claims to be considering 'all opportunities to increase shareholder value'. This decision reflects the fact that while Flying Brands' 'Gardening Direct' division is performing strongly - it generated a £3.5m profit on £11.2m of turnover during the period - other aspects of the business continue to falter. Of most concern are the costs of £1.9m associated with operating Flying Brands' order processing and marketing facilities in Kelvedon and Jersey, a figure chairman Robert Norbury describes as being 'too high for a business of our size'. Growth at the company's other main brand, flower delivery business Flying Flowers, also continues to be disappointing. Norbury blames 'the continued problems with the postal service in the UK' for a 'quality of product on arrival that has been below our targets'. Similarly, collectables business Benham is described as having performed 'considerably below expectations'. By December's year-end broker Seymour Pierce is forecasting a £5.6m pre-tax profit.
| Market cap: | £34.7m |
| PE Forecast: | n/a |
| Share price: | 129.5p |
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