Essential reading for retailers and suppliers in the home improvement market

Concerns raised over Flying Brands' future growth

Published: 30 July 2007
Analyst raises concerns over the Home shopping group Flying Brands, which specialises in gifts, gardening and entertainment products.
In a research note released on Monday (30), broker Seymour Pierce has said it is worried about the 'soft performance of the core brands, with each of them in negative territory' despite seeing the Flying Brands' business model as viable.

"In particular, the acquisition of new customers (despite the fact that more are recruited online) does not seem to be getting any easier," Seymour Pierce said.

It went on: "With the continued circulation declines of printed newspapers reducing the effectiveness and efficiency of one of Flying Brands' recruitment media, we can see the business continuing to have problems".

Seymour Pierce's research also highlighted a reduction in marketing spend to maintain profitability in the first half of its financial year, adding that this resulted in a 'reduction in an active customer database for sales growth' in the second half.

Flying Brands reported flat pre-tax profits of £3.1m in the first half of 2007 on sales up 20% to £25.2m.

The group said it sold its Kelvedon Park call centre for £4.5m cash and will use monies to fund future acquisitions or partnerships.

Chief executive Mark Dugdale described the first half of the year as one of consolidation in which the group had maintained margins, despite having to absorb cost increases.

Sales via the internet rose 26%.

Comments


(Your email address will not be published)
9 + 1 =  
Already Registered?
Sign In
Not Yet Registered?
Register
Printable View E-mail Bookmark
*

Latest reader comments

re: Latest update on Green Homes Grant and implications for homeowners and landlords

John Hart
After applying for a green homes how long will it take for a decision? thanks...

re: SX Rainproof Exterior Caulk

Wally
I need the exterior sx rain resistant caulk! Can't get it anywhere so please help! How can I order it? Need it yesterday...

re: BCT can replicate any material in a ceramic tile

Christina Tiritanou
Not sure if you can help as I require a tile which has the measurements of 6”x 6”? Thank you....

re: Latest update on Green Homes Grant and implications for homeowners and landlords

colin thompson
SarahVery clear and helpful information.Thanks...

Most read stories