Multichannel retailer Flying Brands has reported a drop in profits for 2010, but estimates that profitability will improve in the months ahead.
Group profit before tax from continuing operations for the 12 months to December 31st was £220,000, compared to £2.39 million last year, while revenue from continuing business excluding Greetings Direct reached £27.56 million.
Investors were made aware that the company would not meet annual profit targets in January, when a statement from the firm revealed that the bad weather over Christmas had a seriously negative impact on sales.
It was certainly a year of transformation at Flying Brands, with the company changing its strategy to focus on the garden and gifts markets.
Flowers Direct, Drake Algar and Garden Centre Online were all acquired during the 12-month period. The latter, which was bought for a fee of around of £130,000 in August, had a turnover £1.25 million in the 12 months to August 2009.
As more businesses were added to the organisation’s portfolio some were removed, with 2010 seeing the disposal of the non-core Benham collectibles business.
Meanwhile internet sales accounted for 34.8 per cent of total trading during the year compared to 23.6 per cent in 2010, highlighting where the company’s main focus lies in the months ahead.
Tim Trotter, Chairman of Flying Brands, said: “We believe that the initiatives we have undertaken during the year will improve the profitability and efficiency of our business in 2011.”