Poor figures force Flying Brands site sale

Flying Brands, which owns the Gardening Direct brand, has sold its Meadow Springs bedding glasshouse on Jersey to Jersey Choice (Jersey Plants Direct) through CB Richard Ellis for £1.225m.

The listed home shopping specialist, which is part owned by Sir Tom Hunter, said using the glasshouses only to grow spring bedding was inefficient.

The group's remaining glasshouses will now be used to grow more bedding and will buy additional products from third parties in spring.

Flying Brands has been performing poorly recently and a statement read: "Difficult trading conditions with performance in all divisions being below management expectations has led to pressure on the company's banking covenants. "The board has been seeking ways to realise the value inherent in the assets and businesses of the company both to ease short-term cashflow difficulties and also to enhance shareholder value. The disposals are the first steps in this strategy."

Chief executive Stephen Cook added: "The bulk of the proceeds will be used to pay down debt and thus strengthen the financial position of the company. We continue to explore ways of securing additional working capital should the board consider this to be necessary or desirable."

The end of the low value consignment relief VAT break for the Channel Islands on 1 April 2012 (HW, 18 November) is set to cause prices into the mainland to rise.

Have you registered with us yet?

Register now to enjoy more articles and free email bulletins

Sign up now
Already registered?
Sign in

Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus

Read These Next

Garden centre profile: Hulme Community Garden Centre, Manchester

Garden centre profile: Hulme Community Garden Centre, Manchester

High environmental standards, community work and support for local suppliers are all lessons for the wider garden retail industry, Matthew Appleby discovers.

How can garden centres reduce plastic use?

How can garden centres reduce plastic use?

Garden retailers are under pressure to use less plastic as the Government's new 25-year environment plan seeks to introduce a wave of measures to reduce pollution.

Will peat use be taxed or banned?

Will peat use be taxed or banned?

The Government has made strong statements on peat reduction in its new 25-year environment plan, published in January.

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