This resulted in Channel Island-based companies such as Thompson & Morgan (Young Plants) having to account for VAT for the first time on its despatches from its Guernsey base.
More than 80 per cent of the group's business is mail-order and overall sales fell 22 per cent to £32.3m, down from £41.5m in 2012. The directors blamed the weather for the "disappointing" performance. LVCR meant Channel Island-based companies kept the VAT on sales under £18 plus postage up to a further £6. The £41.5m sales would have incurred VAT of almost £7m.
Operating losses were £2.8m. In 2012, profit was £931,000. Restructuring of operations cost £1.2m because of the closure of Guernsey operations, resulting in a £3.5m loss after tax.