Mail order flowers and gardening group Flying Brands delivered a stark warning over profits after sales wilted in the face of strong competition.
Its year forecasts are now expected to be 'materially' below expectations following a 19.8% plunge in like-for-like sales in the quarter to April 1.
Its flowers business continues to be hit by heavy discounting from rivals, while its gardening arm also came under pressure from supermarkets and garden centres.
Jersey-based Flying Brands shares lost 1.4p (3.1%) to 45p today, 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% to ?22,000. The group had been hopeful that consumers would continue to splash out on flowers and gifts despite general spending caution. More...