Flying Brands third quarter sales down

Flying Brands' total group sales fell to £4.6m in the three months to the end of September - down from £6.0m last time.

The group experienced difficult trading conditions in its core bedding plants business in the autumn season but the bird seed business performed ahead of management expectations.

The group' says its gifts division continues to be affected by weak consumer spending.

In response to this the management team has focussed on quality, value for money products and improving efficiency.

The group said it had agreed an extension to its current overdraft facility with Barclays Wealth from £800,000 to £1,475,000.

The interest rate on this is 4% above base rate and is secured against the group's freehold property in Jersey.

It also said it had obtained a waiver from Barclays Wealth for the breach of its banking covenants on its treasury loan facility for the quarter ending 30 September.

The group has agreed to sell its glasshouse premises at Meadow Springs to Jersey Choice which trades as Jersey Plants Direct.

The Glasshouse has a current book value of £1.15m and is used during the spring gardening season to grow bedding plants.

Following the sale of the Glasshouse the group will retain all its growing and dispatch operation at Retreat Farm, Jersey.

The consideration agreed is £1.225m to be satisfied in cash at completion.

The sale of the Glasshouse will reduce the group's overheads by £0.2m per annum.