Homebase and Flying Brands blame economy and weather for difficult start to year

The Homebase and Gardening Direct brands have reported a slow start to the year.

Homebase owner Home Retail Group has reported a iike-for-like sales dip of 0.6% at its 349-store DIY/garden centre chain in the final eight-week trading period for the financial year ending 27 February 2010.

HRG chief executive Terry Duddy said: "The final short trading period reported today saw volatile trading patterns, making it difficult to assess any changes in underlying consumer demand. For the new financial year, we continue to plan cautiously given the uncertain economic outlook, but do so from our position of operational and financial strength."

Homebase had sales of £205m for the eight weeks and £1,572m for the year, up 2.1% like-for-like.

Meanwhile, in separate results announced today, Flying Brands, which includes Gardening Direct and Garden Bird Supplies, saw like-for-like revenue in its garden division up 6% to £15.89m, with operating profit, excluding one-off redundancy and reorganisation costs, up to £1.81m (2008: £1.31m).

Chairman Tim Trotter said: "The gardening sector as a whole has, we believe, had a difficult start to the year largely brought about by the bad weather to date. Sales so far this year have been behind management expectations but it is still very early in the season and we have been encouraged by our recruitment efforts to date. We have also been pleased with the launch of our new value brand - Jersey Bedding Plants."

 


Have you registered with us yet?

Register now to enjoy more articles and free email bulletins

Sign up now
Already registered?
Sign in

Read These Next

How garden centres are using social media to promote their brands

How garden centres are using social media to promote their brands

Blue Diamond managing director Alan Roper has recently decided to improve social media coverage of his 20 garden centres and has seen success during the launch of new centre East Bridgford Garden & Home in Nottinghamshire.

Paeonia

Paeonia

Stocking a wide range of these impressive flowers from early March until June can boost sales, Miranda Kimberley reports.

After a tough start to the season, how are payment terms impacting cash flow?

After a tough start to the season, how are payment terms impacting cash flow?

Paying on time can be more than a bugbear for suppliers, and at times of slow sales can make or break companies.


Follow us on:
  • Facebook
  • LinkedIn
  • Twitter
  • Google +
Horticulture Jobs
More Horticulture Jobs

Horticulture Week Top 100 GARDEN CENTRES 2017

See our exclusive ranking of garden centre performance by annual turnover. 

Garden Centre Prices

Peter Seabrook

Inspiration and insight from travels around the horticultural world
 

Read more Peter Seabrook articles

Neville Stein

Business advice from Neville Stein, MD of business consultancy Ovation
 

Read latest articles

PLANT SUPPLIERS GUIDE

Free to subscribers, the essential guide for professional plant buyers
 

Download your copy