Increased levels of bad debt and a higher returns rate at
Greetings Direct have forced home shopping group Flying Brands to
warn on profits. In a statement to the City, Flying Brands, which
also operates the Listen2, Gardening Direct and Flying Flowers
catalogues, said it would miss its fiscal 2008/9 profit targets
by £1.1 million. The deteriorating performance at Greetings
Direct is being felt at the division’s UK operations and its
Australian business. Yet the group stressed it was still on track
to launch Greetings Direct in the US later this month, a venture
it feels will be “successful in the long term”.
Current trading in its other brands is also “marginally
below expectations”, prompting the company to trim its
internal expectations for the full year’s profits by
£200,000.
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