Flying Brands sees sales wilting

The group said this year’s profits were expected to be “materially” below market forecasts following a 19.8 per cent plunge in like-for-like sales in the quarter to April 1.

Its flowers business continues to be hit by competition from general retailers and heavy discounting from rivals, while its gardening arm also came under pressure from supermarkets and garden centres.

Jersey-based Flying Brands saw shares lose nearly a fifth of their value at one stage after the news, with the group also revealing it would have to renegotiate its bank terms. It is to start talks with lenders soon.

The update dashes hopes of a quick turnaround after profits were almost wiped out in 2010, down by 91 per cent to £22,000.

The group had been hopeful that consumers would continue to splash out on flowers and gifts despite general spending caution.

But Mother’s Day trading failed to offer any respite for the group’s main flowers division, with sales surrounding the event well below its expectations.

Like-for-like flower orders in the quarter were 14.7 per cent down on a year earlier.

Within the gardening arm, bird food sales were badly hit by competition, although there was some good news as its Gardening Direct business saw a better start to April and sales continued to grow at Garden Centre Online.

It said: “Overall we believe that our strategy for transforming our business remains the right one.”