Multichannel retailer Flying Brands is confident of a turnaround under its new chief executive, despite a dive in pre-tax profits of more than 55 per cent to £1.2 million for the 26 weeks to June 27.

Last month, the retailer revealed it was to close its Greetings Direct business following a poor response to its US launch. The closure resulted in losses of£11.7 million after tax for the period. Sales dropped 5 per cent to£18.9 million.

Flying Brands chief executive Tricia Killen, who joined the business in June, said: “We are now at a turning point for the business. We have a strong plan and we will be executing it over the next six months.”

Landsbanki analyst Paul Deacon said he was encouraged by Killen’s approach to the business. “We are hopeful that Killen’s experience and attention to detail could have an important impact on the operations.”

The retailer has also renegotiated its loan agreements, which Deacon said will help give it “plenty of headroom” in future.

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