ANNUAL REPORT AND ACCOUNTS
FOR THE 53 WEEKS ENDED 2 JANUARY 2004
FLYING BRANDS LIMITED ANNUAL REPORT AND ACCOUNTS FOR THE 53 WEEKS ENDED 2 JANUARY 2004
MAXIMISING OPPORTUNITIES,
MINIMISING RISKS, DELIVERING VALUE
www.fbgl.co.uk
www.flyingflowers.com
www.gardeningdirect.com
www.listen2books.co.uk
www.benhamcovers.com
www.victory-cards.com
FLYING BRANDS LIMITED
REGISTERED OFFICE 
& HEADQUARTERS
Retreat Farm
St Lawrence
Jersey JE3 1GX
UK OFFICE
Kelvedon Park
London Road
Rivenhall 
Witham
Essex CM8 3HB FLYING BRANDS
DELIVERING VALUE THAT EXCEEDS
EXPECTATIONS TO ITS CUSTOMERS
AND ITS SHAREHOLDERS
CONTENTS
FINANCIAL HIGHLIGHTS 01
FLYING BRANDS AT A GLANCE 02
CHAIRMAN’S STATEMENT 03
CHIEF EXECUTIVE’S REPORT 04
FINANCIAL REVIEW 11
DIRECTORS AND ADVISORS 13
FINANCIALS
DIRECTORS’ & CORPORATE GOVERNANCE REPORT 14
CONSOLIDATED PROFIT AND LOSS ACCOUNT 17
STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES 18
RECONCILIATION OF MOVEMENTS IN EQUITY 
SHAREHOLDERS’ FUNDS 18
BALANCE SHEETS 19
CONSOLIDATED CASH FLOW STATEMENT 20
NOTES TO THE FINANCIAL STATEMENTS 21
FIVE YEAR SUMMARY 38
AUDITORS’ REPORT 39
REMUNERATION COMMITTEE REPORT 40
NOTICE OF ANNUAL GENERAL MEETING 44
FINANCIAL CALENDAR
AGM 14 APRIL 2004
PAYMENT OF 2003 FINAL DIVIDEND 16 APRIL 2004
INTERIM RESULTS ANNOUNCED 8 SEPTEMBER 2004 01
FLYING BRANDS LIMITED  ANNUAL REPORT AND ACCOUNTS FOR THE 53 WEEKS ENDED 2 JANUARY 2004
FLYING BRANDS
A YEAR OF GOOD PROFIT GROWTH
AND EXCELLENT CASH GENERATION
FINANCIAL HIGHLIGHTS
> SALES £35.3m –3%
> PROFIT BEFORE TAXATION £5.27m + 10%
AND ALL EXCEPTIONAL ITEMS 
> PROFIT BEFORE TAXATION £5.58m + 24%
> EARNINGS PER SHARE 16.9p + 26%
> EARNINGS PER SHARE (ADJUSTED) 15.7p + 10%
> FINAL DIVIDEND PER SHARE 5.22p +3%
> CASH BALANCE £3.92m
+24%
INCREASE IN PROFIT BEFORE TAXATION
TO £5.58 MILLION
99
00
01
02
03
+10%
INCREASE IN PROFIT BEFORE TAXATION 
AND ALL EXCEPTIONAL ITEMS
TO £5.27 MILLION
99
00
01
02
03
£m
(7.83)
0.05
4.35
4.50
5.58
£m
5.10
3.14
4.46
4.80
5.27 FLYING BRANDS AT A GLANCE
FLYING FLOWERS
THE UK’S LARGEST
POSTAL FLOWER BRAND
TOTAL SALES
£12.23m
CONTRIBUTION
£4.24m
GARDENING DIRECT
THE UK’S LEADING 
MAIL ORDER
BEDDING PLANT
SPECIALIST
TOTAL SALES
£14.77m
CONTRIBUTION
£5.18m
BENHAM
THE FIRST DAY
COVER STAMPS
AND GENERAL
COLLECTABLES
SPECIALIST
TOTAL SALES
£4.83m
CONTRIBUTION
£0.24m
LISTEN2BOOKS
THE UK’S FASTEST
GROWING MAIL
ORDER AUDIO
BOOKS RETAILER
TOTAL SALES
£3.36m
CONTRIBUTION
£0.20m
02
FLYING BRANDS LIMITED  ANNUAL REPORT AND ACCOUNTS FOR THE 53 WEEKS ENDED 2 JANUARY 2004 03
FLYING BRANDS LIMITED  ANNUAL REPORT AND ACCOUNTS FOR THE 53 WEEKS ENDED 2 JANUARY 2004
CHAIRMAN’S STATEMENT
FINANCIAL RESULTS
The Group strengthened its position in 2003, sharpening its strategic focus and
objectives. This has led to a more proactive and streamlined business. The year has
been successful in terms of the increase in profits and cash generation and the
business is benefiting from an improved infrastructure and motivated personnel.
It is encouraging to report that profit before tax and all exceptional items was
£5.27m, an increase of 10% over last year. Profit before tax increased by 24%
to £5.58m. Adjusted earnings per share increased by 10% to 15.67p with basic
earnings per share increasing by 26% to 16.86p. The improvement in
profitability was principally due to better targeting of our customer database,
rigorous control of costs and the elimination of losses on Listen2Books.
Sales were down 3.4% on prior year. As reported in the Interim Statement, 
the performance of Gardening Direct was disappointing in the Spring but some
recovery was seen in the Autumn campaign. Flying Flowers had weaker sales 
in the second half, but this was, in part, due to our policy of mailing more
profitable customers. Listen2Books achieved a 29% increase in sales and is now
firmly positioned as a market leader in the mail order audio books market.
Benham had a satisfactory year with profits before tax of £0.24m.
Due to the initiatives undertaken by management during the year, the
performance in the second half was significantly better than at the interim 
stage and this is reflected in our optimism going forward.
Strong cash generation has left us with a cash balance of £3.92m on the
balance sheet; we have no gearing and are in excellent financial shape to
develop the business further.
DIVIDEND
The directors are recommending a final dividend of 5.22p (2002: 5.05p). 
Together with the interim dividend of 2.53p (2002: 2.45p), this will represent 
a total dividend of 7.75p (2002: 7.50p), an increase of 3.3% for the year.
Dividend cover is 2.16 times.
BOARD AND MANAGEMENT
Mark Dugdale, who took over as Chief Executive at the end of 2002, has now
completed his first full year with the company. Together with his senior colleagues,
he has completed a review of the way we operate and this has led to the
elimination of some middle management positions, as well as a strengthening of
the marketing team. We are fostering an entrepreneurial culture in the Group
which is now supported by robust and effective systems and controls.
We understand the importance of corporate governance and appropriate steps
have been taken to ensure that we comply with best practice for a company of
our size.
OUTLOOK
We have a number of new initiatives in place to refresh our brands, including
widening the overall product offering to increase customer expenditure, more
cost effective customer targeting, expanding our reach in the areas of Gifts,
Hobbies and Entertainment, and focusing more consciously on service and
quality. We will also continue to search for acquisitions that will fit our business
model and enable us to strengthen further our position as a leader in the 
Home Shopping Sector.
EMPLOYEES
I would like to thank all our employees for their contribution in 2003. They have
had to weather a number of changes in the business during the year and I believe
we now have an efficient and effective team to take the business forward.
WE ARE FOSTERING
AN ENTREPRENEURIAL
CULTURE, SUPPORTED
BY ROBUST SYSTEMS
AND CONTROLS 
ALAN FRYER
CHAIRMAN
3 MARCH 2004 2003 was a year of progress, where the strategies and objectives for
the business were translated into action plans and then
implemented. On this basis alone the year has been a successful
one, with healthy increases in profit, matched by an enhanced
infrastructure and motivated personnel.
The increase in profit was achieved despite some substantial cost
increases in 2003, both in the cost of delivering our products and in
sending out promotional material, and indicates the improving
efficiency of our operations. We are now well placed to drive the
business forward and achieve growth, increasing profit and value for
our shareholders.
Our employees have not just embraced change, they have both
suggested and contributed to it. They can be proud of what they
have achieved, just as I am encouraged that we now have the
correct team in place to move the business forward quickly,
maximising opportunities and minimising risk. We are trying to
foster an entrepreneurial culture underpinned by supporting systems
and effective controls, to drive profitable growth in an expanding
Group. I am satisfied that robust foundations towards establishing
this were laid in 2003 and that we will build upon these in 2004
and beyond. Combined with our increasingly efficient operational
infrastructure, these will enable us to exploit the substantial
opportunities that are available across the Group’s business.
STRATEGIC FOCUS
We remain committed to developing our core home shopping 
skills to drive up sales, increase profit and generate cash, 
whilst maximising the efficiencies of our principal assets – 
our customer databases, our call centre, our production and
packing operations, our IT systems and, of course, our staff.
In 2003, we have focused more attention on our two leading
brands – Flying Flowers and Gardening Direct and much of 
the benefit of this will flow through in 2004; we firmly believe 
that both of these brands still have growth potential. With the
successful implementation of our new customer marketing
database software, we have been able to understand far more
about our customers and their ordering pattern dynamics. This
is playing a key part in determining to whom we market, at
what time and with what product offering. We are trying to
balance new customer recruitment investment against extracting
increasing value from our existing best customers.
04
FLYING BRANDS LIMITED  ANNUAL REPORT AND ACCOUNTS FOR THE 53 WEEKS ENDED 2 JANUARY 2004
WE ARE WELL PLACED
TO ACHIEVE GROWTH,
INCREASING PROFITS
AND VALUE FOR OUR
SHAREHOLDERS
MARK DUGDALE
CHIEF EXECUTIVE
3 MARCH 2004
CHIEF EXECUTIVE’S REPORT 05
FLYING BRANDS LIMITED  ANNUAL REPORT AND ACCOUNTS FOR THE 53 WEEKS ENDED 2 JANUARY 2004
The barometer of our success and the basis of our optimism 
for the future lies in our second half performance, where our
enhanced customer targeting strategies have started to contribute
to positive results. 
However, despite the 10% increase in profit before tax and all
exceptional items, we are not complacent about our top line sales
decline, albeit against a particularly strong 2002.
In part this can be ascribed to the reorganisation of our operations
and smarter marketing, by reducing recruitment spend in those
areas that would not deliver a quick enough return, as well as
eliminating unprofitable mailings to the weaker segments of the
database. We have also reorganised our marketing department
along brand lines and have recruited a number of leading 
marketing professionals.
We recognise that there is a perceived maturity plateau in Flying
Flowers and the slow down in Gardening Direct’s previously rapid
growth pattern. We firmly believe that we can at least maintain
Flying Flowers’ turnover levels and that we will return Gardening
Direct to growth. Listen2Books has already reached critical mass
with a very loyal core of responsive customers, so that, although
growth will slow, profits will accelerate over the next three years.
With a careful new product expansion programme, Benham too will
grow and will continue to contribute profits and cash to the Group.
We have 3.8m customers across the databases of all our brands,
from which over 900,000 have ordered from us during 2003. We
recruited 335,000 new customers from advertising in national press
and in consumer magazines. We received over 100,000 orders from
our brand websites.
CHIEF EXECUTIVE’S REPORT CONTINUED
OPERATING RESULTS FOR THE PERIOD
2003 2002 2001
Sales Profit* Sales Profit* Sales Profit*
£’000 £’000 £’000 £’000 £’000 £’000
Flying Flowers 12,231 4,243 12,797 4,292 12,845 4,306
Gardening Direct 14,769 5,180 15,981 4,849 15,598 4,901
Listen2Books 3,360 198 2,605 (59) 499 (381)
Kelvedon and Jersey overheads – (4,021) – (3,817) – (3,729)
30,360 5,600 31,383 5,265 28,942 5,097
Benham 4,828 241 4,930 192 3,444 5
Other 143 144 261 68 424 87
Corporate overheads – (795) – (636) – (518)
Interest –75 – (88) – (216)
Profit before all exceptional items 35,331 5,265 36,574 4,801 32,810 4,455
Disclosure in the Financial Statements:
Profit before operating exceptional items 5,190 4,889 4,671
Net interest receivable/(payable)
and similar charges 75 (88) (216)
5,265 4,801 4,455
* Profit before taxation and operating exceptional items.  06
FLYING BRANDS LIMITED  ANNUAL REPORT AND ACCOUNTS FOR THE 53 WEEKS ENDED 2 JANUARY 2004
CHIEF EXECUTIVE’S REPORT CONTINUED
FLYING FLOWERS
Sales for Flying Flowers were £12.2m in 2003 (2002: £12.8m) with 
a contribution of £4.2m (2002: £4.3m) and a contribution margin 
of 35% (2002: 34%). Internet sales increased by 39% to £1.5m.
Flying Flowers is the UK’s biggest postal flower service. We market
to our best customers eight times a year, but the main promotional
effort concentrates on three ‘peaks’: Christmas (44% of all bouquets
shipped), Mother’s Day (15% of all bouquets) and Valentine’s Day
(2% of all bouquets). We are the market leader in postal despatched
bouquets and also have 11% of the overall mail order gift market
(source: Mintel).
Bottom line improvements have largely been driven by the
streamlining of our order processing and operations areas, and 
a more disciplined approach to buying and supplier control.
The October postal strike had a detrimental impact on new
customer recruitment, but proactive management action reduced 
any other downside. 
On line orders, stimulated both by the revision of our website and a
more targeted approach to e-mailings, increased by 39% in 2003,
with overall participation moving from 8% in 2002 to 12% in 2003.
Market research has shown that we continue to offer excellent service
and the quality of our products is getting better all the time.
We are developing the brand as follows:
• Reintroducing a sub £10 bouquet for off peak activity
• Continuing to introduce new bouquets and stem varieties
• Greater incentives for lapsed customers to retry our service
• Spelling out more clearly the reasons to buy flowers as a gift
• Introducing value add-ons at the point of sale
• Implementing a vigorous campaign to turn recipients into donors
• Testing additional gift concepts and new markets
Flying Flowers is a very successful brand and there is considerable
scope for further development.
FLYING FLOWERS
DESPATCHED ORDERS 
FOR MORE THAN 350,000
CUSTOMERS IN 2003 CHIEF EXECUTIVE’S REPORT CONTINUED
07
FLYING BRANDS LIMITED  ANNUAL REPORT AND ACCOUNTS FOR THE 53 WEEKS ENDED 2 JANUARY 2004
GARDENING DIRECT
It is pleasing to report that Gardening Direct had a better Autumn
season after a disappointing Spring. Overall, sales for 2003 were
£14.8m (2002: £16.0m), with a contribution of £5.2m (2002: £4.8m)
and a contribution margin of 35% (up from 30% in 2002).
Internet sales grew by 35%.
Gardening Direct is the largest home delivery provider of
bedding plants in the UK. The Group grew over 120m bedding
plants last year at our two nurseries in Jersey. The brand has two
major campaigns – Spring (with mailings in November, January,
February, March and April) and Autumn (with mailings in June,
July and August). Nearly 1.8 million customers have ordered from
Gardening Direct, with over 450,000 ordering in 2003. We
estimate our customer market share of all home delivered
garden products to be about 16% (source: Mintel).
We believe that the slowdown in sales against a strong Spring
2002 was as a result of:
• Cutting out unprofitable recruitment
• Increasing our staple bedding plant prices above £10
• More aggressive external competition from multiple retailers
• Timing of some customer mailings
Some of the new initiatives to drive the brand forward include:
• Larger format of catalogue (now A4 from A5)
• 30% additional new products to be offered
• New product types to be trialled
• A more analytical approach to customer targeting
• Introduction of lower price points for key product lines
• Greater incentives for lapsed customers to retry our service
• Driving more sales on line
Our second half performance has given us confidence for the 
future. We are the market leader and intend to consolidate our
position as such.
IN 2003 WE GREW 
OVER 120 MILLION
BEDDING PLANTS AT 
OUR NURSERIES IN JERSEY 08
FLYING BRANDS LIMITED  ANNUAL REPORT AND ACCOUNTS FOR THE 53 WEEKS ENDED 2 JANUARY 2004
CHIEF EXECUTIVE’S REPORT CONTINUED
LISTEN2BOOKS
Sales for Listen2Books in 2003 were £3.4m (2002: £2.6m), with 
a positive contribution of £0.2m (2002: a loss of £0.06m). Units
despatched increased from 150,000 (2002) to 250,000 (2003), and
on line sales grew by 45%.
In two years, Listen2Books has grown from a concept to a major
brand in the audio book retail marketplace. We market to our best
customers eight times a year, offering over 400 titles in each main
catalogue. Customer numbers have grown to just under 150,000,
with 85,000 having ordered from us during 2003. We believe that
our share of the adult audio book market by units is already 15%
(source: SWPA).
However, given that the audio books market is a relatively small 
one, Listen2Books rate of growth is likely to slow somewhat. New
customer recruitment (mainly from inserts in selected national
media) has seen a gradual increase in customer cost per order, but
the database of best, multi ordering customers remains extremely
robust and responsive. In the year ahead, we will therefore focus 
our attention on:
• Converting first time buyers to multi orderers as quickly as possible
• Increasing the mailings and product choices to our best customers
• Testing different opportunities to recruit new customers
• Using sales and special offers as incentives for lapsed customers
• Trialling CD’s alongside cassettes
Listen2Books is already a market leader, and from 2004, it will also
become a major profit contributor to the Group as a whole.
LISTEN2BOOKS 
IS ALREADY A 
MARKET LEADER 09
FLYING BRANDS LIMITED  ANNUAL REPORT AND ACCOUNTS FOR THE 53 WEEKS ENDED 2 JANUARY 2004
CHIEF EXECUTIVE’S REPORT CONTINUED
BENHAM INTRODUCES
NEW PRODUCTS THAT
CAPTURE THE PUBLIC’S
IMAGINATION
BENHAM
Sales were £4.8m in 2003 (2002: £4.9m), with contribution of
£0.24m (2002: £0.19m). This improved result was mainly due to 
our focusing on extracting more profit out of existing customers and
a move away from more speculative investment in external media
advertising, which explains the slight decline in sales.
Benham, our collectables brand, serves both the specialist collector
as well as those with a more general interest, with a wide range of
first day cover stamps (illustrated envelopes bearing postage stamps
franked on the day of their release) and also a worldwide new issue
stamp business. Benham has a trading database of more than
100,000 customers.
As Benham continues to provide products that exploits its customer
databases, as well as introducing new concepts that capture the
imagination of the public, we believe that this business will step up
a level going into 2004. 10
FLYING BRANDS LIMITED  ANNUAL REPORT AND ACCOUNTS FOR THE 53 WEEKS ENDED 2 JANUARY 2004
INFRASTRUCTURE AND OPERATIONS
The introduction of our customer marketing database software
during 2003 is enabling us to exploit previously unseen synergies
between our different brands. We have also completely “cleaned”
our database to eliminate duplication (and therefore promotional
waste and customer irritation) and we are building a much more
focused “customer view” of spending trends by season, price point
and product.
We introduced new websites for three of our brands and saw overall
internet sales increase by 38% over 2002 and, as a proportion of
total sales, from 5% to 7%. I firmly believe that we can continue to
improve both on line sales and participation rates, through rigorous
application of our direct marketing knowledge, targeted e-mailing,
regularly updated websites, and a greater understanding of site
driving opportunities.
Last year, we embarked upon a renovation project of Retreat Farm,
our headquarters in Jersey, with two principal objectives:
• Guarantee at least 10 further years of usage from our despatch
centre (this was constructed in the 1970’s with a thirty year 
safe life span)
• Utilise the space more effectively to improve work flow and
operational efficiency
We are well on track to completing this. Furthermore, we have
simplified our forecasting methods and enabled more direct
interface between departments. This has allowed us to reduce
headcount whilst generating collective accountability and means
that we can implement decisions more quickly and with more
confidence. Complaint levels have fallen in 2003 and market
research indicates that we deliver excellent customer service.
ACQUISITION STRATEGY
Given our database, infrastructure and levels of home shopping
expertise, the Group is more than capable of absorbing other home
shopping businesses while minimising costs. Indeed, by driving
increasing volumes of orders through our existing operations, we
will see economies of scale and substantially improved recovery of
fixed overheads.
Our strong positive cash position means that we can continue to pay
a progressive dividend while being able to review the market for
other growing and profitable brands to incorporate into the Group.
These will enable us to:
• Deliver solid sales growth whilst also increasing profits
• Consolidate our position as a leading direct marketing and home
shopping business with a rounded portfolio of brands serving a
large consumer market
• Invest more into the development of our existing brands
• Test more new concepts to bring new brands to life at the start of
their growth cycle
We have therefore been looking for home shopping businesses (or
the home shopping arm of both wholesale or store retail businesses)
in the Gifts, Hobbies and Entertainment arenas, matching the areas
in which our four existing brands trade.
We have identified several suitable businesses and are evaluating a
number of opportunities. We hope to be able to announce at least
one successful outcome during 2004, but we are focused on
making the right acquisitions at the right price that leverage our
operational assets and enhance our shareholder value, rather than
being committed to a specific time schedule.
OUTLOOK
Flying Brands remains a highly profitable, cash generative business,
where shareholders have enjoyed consistent dividends. It has four
brands that are well established, three of which (Flying Flowers,
Gardening Direct and Listen2Books) can now claim to be market
leaders in their particular fields. The Directors and management are
committed to taking the business forward to a new phase of
profitable growth, through:
• Increasing customer spend on existing brands
• Recruiting new customers to strict pay back parameters
• Reactivating lapsed customers through the right incentives
• Expanding the reach of our current brands with new products 
and categories
• Acquiring new businesses with appropriate synergies with our
current brands
• Developing the internet and on line sales
• Ensuring the correct infrastructure is in place to deliver growth
efficiently and that customer service is always put first
I remain pleased with what has been done but very excited by what
we can still achieve. I have confidence that we will deliver increasing
value to our shareholders as our strategy is implemented. You will
notice that we have changed the format of our Annual Report for
2003. We hope that it will better communicate who we are, what
we are currently doing, and our vision and aspirations for Flying
Brands in 2004 and beyond.
CHIEF EXECUTIVE’S REPORT CONTINUED
INTERNET SALES
INCREASED BY 38% 11
FLYING BRANDS LIMITED  ANNUAL REPORT AND ACCOUNTS FOR THE 53 WEEKS ENDED 2 JANUARY 2004
RESULTS
The Group has continued to drive profits forward with profit before
tax up by 24%, and profit before tax and before all exceptional
items up by 10%. The business is focused on profitable growth, 
and although sales in 2003 showed a fall on 2002 of 3%, the
temptation to chase marginal customers was resisted, and a greater
emphasis was placed on increasing customer spend and improving
operational efficiency. This is reflected in the contribution margin for
the two main brands improving to 35% compared to 32% in 2002.
With Listen2Books and Benham also generating profit increases this
shows a consistent trend.
Overheads increased during the year by 5%, slightly above inflation,
as the marketing team was considerably strengthened.
Corporate overheads comprise the cost of the Chief Executive, 
the Finance Director, the Non Executive Directors and the legal,
professional and other fees connected with the running of a public
company. These costs increased by £0.16m in 2003, following the
changes to the board which were implemented in the latter part of
2002, together with one off costs of £0.06m.
The Group received net interest income in the year of £0.08m,
compared to an interest charge in 2002 of £0.09m. This all derives
from the continued improvement in the Group’s financial position,
which is explained below.
The Financial Statements show a profit on sale of subsidiaries and
businesses and freehold property of £0.31m. During the year the
Group received a final payment from the sale of the Blooms of
Bressingham Nursery business which was completed in 1998.
The Group also sold a property in Jersey for £0.3m which
realised a profit of £0.02m.
CASH FLOW
The net cashflow from operating activities was £7.69m, up 
by 19% on the previous year. Working capital changes were
neutral. The Consolidated Cash Flow Statement on page 20
shows how this cash flow was utilised. 
Taxation payments increased substantially from £0.72m to £1.24m.
Capital expenditure was down from £1.51m to £0.99m in 2003 and
in addition the Group received £0.34m from the sale of fixed assets,
together with £0.49m in deferred payments on the sale of Blooms
of Bressingham Nursery business.
The Group repurchased 350,000 of its own shares during the year at
an average price of £1.42. The special resolution to authorise the
Group to be enabled to buy its own shares is included in the AGM
notice enclosed with this Report. 
FINANCIAL REVIEW
THE BUSINESS IS
FOCUSED ON
PROFITABLE GROWTH
AND MAXIMISING
CASH GENERATION 
DAVID HARBORD
FINANCE DIRECTOR
3 MARCH 2004 12
FLYING BRANDS LIMITED  ANNUAL REPORT AND ACCOUNTS FOR THE 53 WEEKS ENDED 2 JANUARY 2004
The Group made dividend payments of just under £2m. Dividend
cover in 2002 was 1.8 but has increased to 2.16 in 2003, partly a
result of the profits on sale of subsidiaries and freehold property. 
Net of this, the cover is 2 times which the board believes is a
sensible and prudent medium term level of cover.
The combined impact of these cash flows was to eliminate debt 
and create cash balances of £3.92m in the year, which, given the
dividend payment, represents an excellent performance.
TREASURY POLICY
The Group’s financial position has changed considerably in the 
last few years. 
1999 2000 2001 2002 2003
£’000 £’000 £’000 £’000 £’000
Profit/(loss) after taxation (8,859) (820) 3,452 3,527 4,405
Dividends 1,945 1,941 1,930 1,964 2,010
Net (debt)/funds (7,970) (4,744) (2,352) (98) 3,920
It is the Group’s policy to take a conservative stance on treasury
matters and maximise cash generation. This is tied to our strategy,
which aims to utilise cash generated to acquire complementary
businesses. We recognise that cash cannot provide a satisfactory
level of return for shareholders, however well it is managed, but 
we believe it is in the best interests of shareholders to retain the
flexibility this currently allows us in pursuing our strategy.
The main financial risks of the Group have reduced in recent years
following the disposal of overseas subsidiaries and the elimination 
of debt. There remains some currency risk on the purchase of some
raw materials, and the policy of the Group is to enter into forward
contracts for up to 80% of the forecast requirement. 
The cashflow profile of the Group is very seasonal, but with the level
of cash at the beginning of the year, no bank facility is required. Where
possible, cash is placed on deposit for periods of no greater than two
months, which again is in accordance with our strategic objectives.
TAXATION
The group pays taxation in Jersey and the UK depending on the 
domicile of its respective subsidiaries. The taxation charge for 2003
is £1.17m or 21% (compared to £0.98m or 21.7% in 2002). The
reduction in the average rate of taxation was due to exceptional
items, on which no tax was payable. Excluding these items the
average rate of taxation was 22.2%.
ACCOUNTING POLICIES
There have been no changes to the accounting policies in the year
and they have been applied on a consistent basis throughout the year.
FINANCIAL REVIEW CONTINUED
OUR MAIN FINANCIAL
RISKS HAVE REDUCED 
IN RECENT YEARS
Flying Brands is one of the largest non-financial
listed companies in the Channel Islands 13
FLYING BRANDS LIMITED  ANNUAL REPORT AND ACCOUNTS FOR THE 53 WEEKS ENDED 2 JANUARY 2004
ALAN FRYER
NON-EXECUTIVE CHAIRMAN
Aged 62, appointed to the Board in 1999, appointed Chairman in
2002. Formerly Group Deputy Chief Executive of Smith & Nephew
PLC (retired December 2000). Chairman of Oxoid Group Ltd.
MARK DUGDALE
CHIEF EXECUTIVE
Aged 45, appointed to the Board in November 2002. Formerly
Managing Director of Dial Home Shopping Limited (part of Arcadia
Group plc) and Hamilton Group (Europe); also a former Marketing
Director of Innovations Mail Order plc. He is a Non-Executive
Director of Digivate Limited.
DAVID HARBORD ACA
FINANCE DIRECTOR & COMPANY SECRETARY
Aged 43, joined the Company and appointed to the Board in 1999.
Formerly Finance Director of Westmill Foods Limited, a subsidiary of
Associated British Foods PLC. He qualified as an accountant in 1986
with Touche Ross &Co.
TIM BODEN
MARKETING DIRECTOR
Aged 36, appointed to the Board in 2002. He joined the Company
in 1995 as product manager at Flying Flowers, being promoted to
Marketing Manager in 1998. Previously he worked for Innovations
Mail Order plc.
PAUL FRASER
NON-EXECUTIVE DIRECTOR
Aged 48, joined the Company and appointed to the Board in 1998.
Moved to non-executive role in 2002. Over twenty years experience
of mail order and retail collectables. He is Chairman of The Stanley
Gibbons Group Limited.
LEN SANDERSON*
NON-EXECUTIVE DIRECTOR
Aged 50, appointed to the Board in 2000. Former Managing Director
of the Telegraph Sales, part of the Telegraph Group Limited.
TIM TROTTER*
NON-EXECUTIVE DIRECTOR
Aged 45, appointed to the Board in 2000. Non-Executive Director of
Vislink PLC and Chairman of Smithfield Consultants Limited.
Formerly Chairman of Ludgate Group Limited.
* Members of the Audit Committee and 
the Remuneration Committee
REGISTERED OFFICE
Retreat Farm, St Lawrence, Jersey JE3 1GX
COMPANY NUMBER
2044
STOCKBROKERS
Collins Stewart
88 Wood Street, London EC2V 7QR
AUDITORS
PricewaterhouseCoopers (Channel Islands) Chartered Accountants
Twenty Two Colomberie, St Helier, Jersey JE1 4XA
LEGAL ADVISORS
Ogier and Le Masurier
PO Box 404, Whitely Chambers, Don Street, St Helier, Jersey JE4 9WG
Pinsents
Dashwood House, 69 Old Broad Street, London EC2M 1NR
BANKERS
Barclays Bank PLC
PO Box 8, 13 Library Place, St Helier, Jersey JE4 8NE
REGISTRARS
Capita IRG plc
Balfour House, 390/398 High Road, Ilford, Essex IG1 1NQ
DIRECTORS AND ADVISORS 14
FLYING BRANDS LIMITED  ANNUAL REPORT AND ACCOUNTS FOR THE 53 WEEKS ENDED 2 JANUARY 2004
The Directors present their report and the audited financial statements for the 53 weeks ended 2 January 2004.
INCORPORATION
The Company is incorporated in Jersey, Channel Islands.
DIRECTORS‘ RESPONSIBILITIES FOR THE FINANCIAL STATEMENTS
The Directors are required by the Companies (Jersey) Law 1991 to prepare financial statements for each financial year which give a true and
fair view of the state of affairs of the Company and the Group as at the end of the financial year, and of the Group profit or loss for that
period. In preparing these financial statements, the Directors are required to:
• Select suitable accounting policies and then apply them consistently;
• Make judgements and estimates that are reasonable and prudent;
• State whether applicable United Kingdom accounting standards have been followed, subject to any material departures disclosed and
explained in the financial statements;
• Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company and the Group will
continue in business.
The Directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial
position of the Company and to enable them to ensure that the financial statements comply with the Companies (Jersey) Law 1991. They are
also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud,
error and non compliance with law and regulations.
Although an overseas company, the Directors have sought to ensure that the financial statements of the Company and the Group comply
materially with the disclosure requirements of the UK Companies Act 1985 and the listing requirements for a UK company.
PRINCIPAL ACTIVITIES
The principal activities of the Group are unchanged from last year being volume mail order and collectables retailing.
BUSINESS REVIEW AND FUTURE PROSPECTS
A commentary of the Group's progress during the year and its future prospects are set out in the Chairman’s and Chief Executive's
Statements on pages 3 to 10 and the Financial Review on pages 11 to 12.
FLYING BRANDS HOLDINGS (UK) PLC
During 1996 the Group created a twinned share structure to enable UK based shareholders to receive a UK dividend and thereby avoid being
double taxed on the Jersey dividend. Consequently all shareholders hold in addition to their shares in Flying Brands Limited an equivalent
number of shares in Flying Brands Holdings (UK) PLC.
Although the results for the 53 weeks ended 2 January 2004 of Flying Brands Holdings (UK) PLC are included in the consolidated financial
statements of Flying Brands Limited, in accordance with UK Company Law a separate set of financial statements for Flying Brands Holdings
(UK) PLC will be sent to shareholders.
RESULTS AND DIVIDENDS
The Group profit on ordinary activities before taxation amounted to £5.58m (2002: £4.50m). 
An interim dividend of 2.53p was paid in 2003 (2002: 2.45p).
The Directors recommend a final cash dividend for the year of 5.22p per ordinary share (2002: 5.05p).
Subject to the approval of members at the Annual General Meeting the dividend will be paid on 16 April 2004 to shareholders on the
register on 19 March 2004.
The retained profit for the financial year amounted to £2.32m (2002: £1.56m).
DIRECTORS
The Directors of the Company at the end of the year are shown on page 13. Mr T Dunningham served as a Director of the Company from
the beginning of the year until 30th April 2003. Mr TK Boden, Mr PI Fraser and Mr THS Trotter retire by rotation, and, being eligible, offer
themselves for re-election. The service contracts of all directors are noted in the remuneration committee report on pages 40 to 43.
Biographical details of the Directors are given on page 13.
DIRECTORS’ AND CORPORATE GOVERNANCE REPORT  15
FLYING BRANDS LIMITED  ANNUAL REPORT AND ACCOUNTS FOR THE 53 WEEKS ENDED 2 JANUARY 2004
DIRECTORS’ INTERESTS
The interests of the Directors in the shares of the Company at 2 January 2004, together with their interests at 27 December 2002 are shown
in the Remuneration Committee Report on pages 40 to 43.
SHARE CAPITAL
Details of the share capital of the Company and the movements during the year, are set out in Note 22 to the accounts.
The Directors’ interests in share options are set out within the Remuneration Committee Report on page 43.
Apart from service contracts none of the Directors had a material interest in any contract of significance to which the Company or any of its
subsidiaries was a party during the financial year.
POLICY ON PAYMENT OF CREDITORS
It is Group policy, in respect of all of its suppliers, to settle the terms of payment when agreeing each transaction, to ensure that suppliers are
made aware of the terms of payment and to abide by those terms. 
CHARITABLE AND POLITICAL DONATIONS
The Company did not make any political or charitable donations during the year.
INTANGIBLE ASSETS
No value is attributed in the Balance Sheet to the Group's brand names or its extensive databases of customers.
SUBSTANTIAL SHAREHOLDINGS
As at 14 February 2004, other than the Directors‘ holdings noted above, the Company was aware of the following interests in 3% or more
of its issued share capital:
Sussex Research Limited: 3,615,999 (13.6%)
Mr T Dunningham: 1,145,000 (4.3%)
ANNUAL GENERAL MEETING
The Annual General Meeting will be held on 14 April 2004 and notice of that meeting is set out on page 44.
A Special Resolution to renew the authority for the Company to purchase up to 10% of its own shares, last renewed on 24 April 2003, will
be proposed at the forthcoming Annual General Meeting.
PURCHASE OF SHARES 
The company purchased 350,000 of it own shares having a nominal value of £3,500 for a total consideration of £496,000. This represents
1.3% of the company’s issued share capital. The shares were purchased because the directors were of the opinion that the purchase of its
own shares at an average price of £1.42p per share would enhance shareholder value.
EMPLOYEES
The Company‘s policy is to provide equal opportunities to all present and potential employees, including, where practical, those who are disabled.
There is regular communication with staff at all levels. Staff are kept informed of performance and objectives of the Group throughout the
year through their line managers, staff meetings and the Interim and Annual published results.
SECRETARY
The Secretary of the Company is Mr D C Harbord ACA who had been Secretary for the entire year.
AUDITORS
A resolution to reappoint PricewaterhouseCoopers, Channel Islands, as auditors will be proposed at the Annual General Meeting.
CORPORATE GOVERNACE
Flying Brands Limited supports the Combined Code of Best Practice issued by the Turnbull Committee on Corporate Governance and
incorporated into the Listing Rules and the Principles of Best Practice which makes a number of specific recommendations relating to the
composition and procedures of the Board and the Directors’ responsibilities in relation to systems of internal control.
DIRECTORS’ AND CORPORATE GOVERNANCE REPORT CONTINUED 16
FLYING BRANDS LIMITED  ANNUAL REPORT AND ACCOUNTS FOR THE 53 WEEKS ENDED 2 JANUARY 2004
The Group complies with the provisions of Section 1 of the Combined Code, with two exceptions. Firstly, for part of the year the work of a
Nomination Committee was undertaken by the Remuneration and Nominations Committee as no separate constitution existed. Secondly on
1 September 2003 the membership of the Audit Committee was reduced to two members, being the two Independent 
Non-Executive Directors as opposed to the three members required by the Combined Code.
On 26 February 2003, a separate Nominations Committee was formed, comprising the four Non-Executive Directors and the Chief Executive.
BOARD OF DIRECTORS
The Board meets at least six times a year and currently comprises three Executive Directors and four Non-Executive Directors. Two of the 
Non-Executive Directors are considered to be independent. Mr LM Sanderson is considered to be the Senior Independent Non-Executive
Director. The Board has a formal schedule of matters specifically reserved to it for decision and retains full and effective control over the
Group’s activities. All Directors have access to the advice and services of the Company Secretary. In addition, a formal procedure is in place by
which any Director may take independent professional advice, if necessary at the Company’s expense.
In accordance with the Articles of Association, a third of Directors are subject to re-election each year. In practice this means that all Directors
are subject to re-election at intervals of no more than three years.
AUDIT COMMITTEE
Members of the Audit Committee as at 2 January 2004, and who served during the year, were as follows:
T H S Trotter, Chairman 
L M Sanderson
P I Fraser (Resigned 1st September 2003)
A R Fryer (Resigned 1st September 2003)
The Audit Committee meets at least 4 times a year, with the meetings being attended by the Group’s external auditors. Mr THS Trotter
replaced Mr LM Sanderson as Chairman of the Audit Committee on 1 September 2003.
REMUNERATION COMMITTEE
The Remuneration Committee, comprising the two Independent Non-Executive Directors, meets at least three times a year. The Report of the
Remuneration Committee is set out on pages 40 to 43.
SHAREHOLDERS RELATIONSHIP
The group maintains a close relationship with its major shareholders through regular contact. 
FINANCIAL REPORTING
The annual report is designed to present a balanced and clear view of the Group’s activities and prospects.
STATEMENT ON GOING CONCERN
The Directors, having made appropriate enquiries, confirm that they believe that the Group has adequate resources to continue in operational
existence for the foreseeable future and for this reason they continue to adopt the going concern basis in preparing the financial statements.
INTERNAL CONTROLS
The Directors are responsible for the Group’s system of internal control and for reviewing its effectiveness. Such a system is designed to
manage rather than eliminate the risk of failure to achieve business objectives and can only provide reasonable and not absolute assurance
against material misstatement or loss. 
A detailed assessment of the risks and internal controls of the group is updated and circulated to the Board every three months. The
assessment is reviewed by the Board and the Audit Committee on an ongoing basis and accords with the Turnbull Committee guidance on
internal control issued in September 1999. In addition to its review of the scope and results of the audit and the activities of the external
auditors, the Audit Committee terms of reference include the overseeing of internal controls.
The Board has considered the need for an internal audit function but has decided that the size of the Group does not justify it at present.
However, the Board will continue to review this decision annually.
By order of the Board
D C Harbord Registered office
Secretary Retreat Farm
St Lawrence
3 March 2004 Jersey CI
DIRECTORS’ AND CORPORATE GOVERNANCE REPORT CONTINUED 17
FLYING BRANDS LIMITED  ANNUAL REPORT AND ACCOUNTS FOR THE 53 WEEKS ENDED 2 JANUARY 2004
2003 2002
notes £’000 £’000
Turnover 2 35,331 36,574
Cost of sales (24,089) (25,727)
Gross profit 11,242 10,847
Operating expenses 3 (6,052) (6,255)
Profit before operating exceptional items 5,190 4,889
Operating exceptional items 4 – (297)
Operating profit 5,190 4,592
Profit on sale of subsidiaries and businesses 15 287 –
Profit on sale of freehold property 23 –
Net interest receivable/(payable) and similar charges 5 75 (88)
Profit on ordinary activities before taxation 6 5,575 4,504
Tax on profit on ordinary activities 9 (1,170) (977)
Profit for the financial year 4,405 3,527
Dividends 11 (2,010) (1,964)
Retained profit for the year 24 2,395 1,563
Earnings per Ordinary Share 12 16.86p 13.43p
Exceptional items (1.19p) 0.88p
Adjusted Earnings per Ordinary Share 15.67p 14.31p *
Diluted Earnings per Ordinary Share 12 15.56p 13.29p
All activities derive from continuing operations.
There is no material difference between the profit on ordinary activities before taxation and the retained 
profit for the year stated above and their historical cost equivalents.
*Adjusted Earnings per Ordinary Share have been restated (see note 12).
CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE 53 WEEKS ENDED 2 JANUARY 2004 18
FLYING BRANDS LIMITED  ANNUAL REPORT AND ACCOUNTS FOR THE 53 WEEKS ENDED 2 JANUARY 2004
2003 2002
£’000 £’000
Profit for the financial year 4,405 3,527
Exchange adjustments offset in reserves 12 2
Total recognised gains for the year 4,417 3,529
STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
2003 2002
£’000 £’000
Profit for the financial year 4,405 3,527
Dividends (2,010) (1,964)
Retained profit 2,395 1,563
Purchase of own shares (496) –
Issue of own shares 104 82
Exchange difference 12 2 
Net increase in equity shareholders’ funds 2,015 1,647
Opening equity shareholders’ funds 12,336 10,689
Closing equity shareholders’ funds 14,351 12,336
RECONCILIATION OF MOVEMENTS IN EQUITY SHAREHOLDERS’ FUNDS 19
FLYING BRANDS LIMITED  ANNUAL REPORT AND ACCOUNTS FOR THE 53 WEEKS ENDED 2 JANUARY 2004
Group Group Company Company
2003 2002 2003 2002
notes £’000 £’000 £’000 £’000
Fixed assets
Intangible assets 13 7 95 – –
Tangible assets 14 14,042 15,438 – –
Investments 16 927 942 22,321 22,341
14,976 16,475 22,321 22,341
Current assets
Stocks 17 2,394 2,836 – –
Debtors – due after more than one year 18 21 655 – –
– due within one year 18 996 936 2,544 4,647
Cash at bank and in hand 3,920 1,191 7 7
7,331 5,618 2,551 4,654
Creditors: amounts falling due within one year 19 (6,804) (8,572) (1,356) (1,342)
Net current assets/(liabilities) 527 (2,954) 1,195 3,312
Total assets less current liabilities 15,503 13,521 23,516 25,653
Creditors: amounts falling due after more than one year 20 (1,007) (937) – –
Provisions for liabilities and charges 21 (145) (248) – –
Net assets 14,351 12,336 23,516 25,653
Capital and reserves
Called-up share capital 22 268 270 267 269
Share premium 24 15,731 15,629 15,731 15,629
Revaluation reserve 24 464 471 – –
Capital reserve 24 (17) (17) 670 670
Capital redemption reserve 24 5 1 5 1
Profit and loss account 24 (2,100) (4,018) 6,843 9,084
Equity Shareholders’ funds 14,351 12,336 23,516 25,653
The financial statements on pages 17 to 37 were approved by the 
Board of Directors on 3 March 2004 and signed on its behalf by
MTN Dugdale DC Harbord
Director Director
BALANCE SHEETS
AS AT 2 JANUARY 2004 20
FLYING BRANDS LIMITED  ANNUAL REPORT AND ACCOUNTS FOR THE 53 WEEKS ENDED 2 JANUARY 2004
CONSOLIDATED CASH FLOW STATEMENT
FOR THE 53 WEEKS ENDED 2 JANUARY 2004
2003 2002
notes £’000 £’000
Net cash inflow from operating activities 25 7,689 6,461
Returns on investments and servicing of finance
Interest received 75 30
Interest paid on bank loans and overdrafts – (113)
Interest element of finance lease payments – (5)
75 (88)
Taxation
Jersey tax paid (677) (532)
UK corporation tax paid (563) (191)
(1,240) (723)
Capital expenditure and financial investment
Payment to acquire tangible fixed assets (994) (1,506)
Receipts from sales of tangible fixed assets 345 60
(649) (1,446)
Acquisitions and disposals
Receipt of deferred consideration 495 153
Equity dividends paid (1,975) (1,929)
Net cash inflow before financing 4,395 2,428 
Financing
Issue of ordinary share capital 104 81
Capital element of finance lease payments (89) (568)
Bank loan repayments (1,200) (550)
Exercise of options held in ESOP 15 –
Payments to buy own shares (496) (255)
Net cash outflow from financing (1,666) (1,292)
Increase in cash 27 2,729 1,136 21
FLYING BRANDS LIMITED  ANNUAL REPORT AND ACCOUNTS FOR THE 53 WEEKS ENDED 2 JANUARY 2004
1  PRINCIPAL ACCOUNTING POLICIES
The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain freehold land and
buildings and in accordance with accounting standards currently applicable in the United Kingdom. The Directors consider that the
accounting policies set out below are suitable, have been consistently applied, and are supported by reasonable judgements and estimates.
Basis of consolidation
The consolidated financial statements include the assets, liabilities and results of the Company and all its subsidiary undertakings. The results
of subsidiary undertakings acquired or disposed of during the year are included in the consolidated profit and loss account from the date of
their acquisition or up to the date of disposal.
Intra-Group sales and profits are eliminated on consolidation, and all sales and profit figures relate to external transactions only.
Turnover
Turnover represents the invoiced value of goods supplied and is stated net of VAT and credit card commission. Turnover is recognised at the
date of despatch of goods to customers. Any refunds or replacements are recognised in the period in which the refund or replacement is made.
Goodwill and intangible assets
Purchased goodwill is capitalised, classified as an asset and amortised over its estimated useful economic life. The gain or loss on the disposal
of a subsidiary or associated undertaking is calculated by comparing the carrying value of the net assets sold (including any unamortised
goodwill) with the proceeds received. Prior to 1998 the Group’s policy was to write off goodwill in the year of acquisition to the profit and
loss account reserve. Any permanent diminution in value is recognised by immediate write-off through the profit and loss account.
Other intangible fixed assets are amortised on a straight line basis over their estimated useful economic lives ranging from 5 to 7 years.
Tangible fixed assets
Interest in land and buildings is stated at cost or valuation. The group has taken advantage of the transitional provision available under 
FRS 15 (Tangible Fixed Assets) which allows for the book value of the freehold land and buildings to be ‘frozen’ and treated as historic cost.
Freehold land and buildings were last revalued for the purpose of the financial statements on 1 July 1993. Fixed assets held under finance
leases are stated at the present value of the minimum lease payments due at the inception of the lease, or at fair value where this is
considered a sufficiently close approximation to present value. Other tangible fixed assets are stated at their purchase price, including any
incidental expenses of acquisition.
Depreciation is calculated to write down the net book value of tangible fixed assets, less their estimated residual value, on a straight-line
basis, over the expected useful economic lives of the assets concerned. The principal annual rates used for this purpose are:
%
Freehold land and buildings, including glasshouses 0 – 4
Plant and equipment 10 – 20
Computer hardware, included in plant and equipment 20 – 33
1
/3
Motor vehicles, including tractors 15 – 20
NOTES TO THE FINANCIAL STATEMENTS 22
FLYING BRANDS LIMITED  ANNUAL REPORT AND ACCOUNTS FOR THE 53 WEEKS ENDED 2 JANUARY 2004
1  PRINCIPAL ACCOUNTING POLICIES CONTINUED
Stock
Stocks are valued at the lower of cost and net realisable value. In general, cost is determined on a first in first out basis and includes transport
and handling costs. Net realisable value is the price at which stocks can be sold in the normal course of business after allowing for the costs
of realisation. Provision is made where necessary for obsolete, slow moving and defective stocks.
Included within goods held for resale are certain First Day Cover stocks. These stocks are valued as a proportion of their anticipated realisable
value, as a best estimate of the lower of cost and net realisable value, based on the expert opinion of the Group’s philatelists. Provision is
made for slow moving stock.
Prepayments
The seasonality of the business at Gardening Direct means that certain external costs relating to order processing and marketing for the
Spring season are included in prepayments.
Marketing expenditure
The Group charges external campaign marketing expenditure to the profit and loss account in the accounting period in which the related
sales campaign takes place. Any losses on recruitment sales are taken to the profit and loss account as incurred.
Finance leases
Where fixed assets are financed by entering into leasing agreements, which transfer to the lessee substantially all benefits and risks of
ownership, the assets are treated as if they had been purchased and are included in tangible fixed assets, and the capital element of the
leasing commitments is shown as obligations under finance leases. The lease rentals are treated as consisting of capital and interest elements;
the capital element is applied to reduce the outstanding obligations and the interest element is charged against profit, in proportion to the
reducing capital element outstanding. Assets held under finance leases are depreciated over the shorter of the lease terms and the estimated
useful lives of the assets.
Operating leases
Rentals payable under operating leases are taken to the profit and loss account on a straight line basis over the lease term.
Foreign currencies
Transactions denominated in foreign currencies are translated into sterling at the exchange rate ruling when the transaction was entered into.
Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the exchange rate ruling at the balance sheet
date. Exchange gains or losses are included in operating profit. The results of subsidiary undertakings denominated in foreign currencies are
translated at the average exchange rate for the year.
Taxation
The charge for taxation is based on the results for the year as adjusted for tax purposes.
Deferred taxation
Deferred taxation is provided on all timing differences arising from the different treatment of items for accounts and taxation proposes,
calculated at rates at which it is estimated that tax will arise. Deferred tax balances are not discounted.
Pensions
The Group makes contributions to some employees’ and Directors’ personal pension plans which are accounted for on an accruals basis.
NOTES TO THE FINANCIAL STATEMENTS CONTINUED 23
FLYING BRANDS LIMITED  ANNUAL REPORT AND ACCOUNTS FOR THE 53 WEEKS ENDED 2 JANUARY 2004
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
2  SEGMENTAL ANALYSIS
The Directors of Flying Brands Limited are of the opinion that, whilst the Group markets a number of different brands, all the business of the
Group is operated within the mail order retail segment.
TURNOVER BY GEOGRAPHICAL AREA 2003 2002
Sales by Sales by Sales by Sales by
destination origin destination origin
£’000 £’000 £’000 £’000
Jersey, Channel Islands 115 32,060 71 33,607
United Kingdom 34,208 3,271 35,426 2,967
Europe 357 – 421 –
Outside Europe 651 – 656 –
35,331 35,331 36,574 36,574
PROFITS AND ASSETS BY GEOGRAPHICAL AREA 2003 2002
Profit before Net Profit before Net
taxation assets taxation assets
£’000 £’000 £’000 £’000
Jersey, Channel Islands 3,705 22,179 2,554 9,608
United Kingdom 1,870 (7,828) 1,950 2,282
Europe –– – 446
Outside Europe –– ––
5,575 14,351 4,504 12,336
3  OPERATING EXPENSES
2003 2002
£’000 £’000
Selling and distribution 741 688
Administrative expenses 5,311 5,567
6,052 6,255
Less administrative expenses treated as operating exceptional items (see note 4) – (297)
6,052 5,958 24
FLYING BRANDS LIMITED  ANNUAL REPORT AND ACCOUNTS FOR THE 53 WEEKS ENDED 2 JANUARY 2004
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
4  OPERATING EXCEPTIONAL ITEMS
Operating exceptional items included in operating results are all classified as administration expenses and can be analysed as follows:
2003 2002
£’000 £’000
Group restructuring costs – 297
5  NET INTEREST RECEIVABLE/(PAYABLE) AND SIMILAR CHARGES
2003 2002
£’000 £’000
Interest payable on bank loans, overdrafts and other loans
Repayable within 5 years by instalments – –
Repayable within 5 years, not by instalments – 113
– 113
Interest payable on finance leases and hire purchase contracts 2 5
2 118
Interest receivable (77) (30)
(75) 88
6  PROFIT ON ORDINARY ACTIVITIES BEFORE TAXATION
2003 2002
£’000 £’000
Profit on ordinary activities before taxation is stated after charging/(crediting): 
Depreciation charge for the year:
Tangible owned fixed assets 2,071 1,966
Tangible fixed assets held under finance leases – 153
Amortisation of intangible assets 88 87
Auditors’ remuneration (parent company £17,500 (2002: £17,500)) 72 72
Auditors’ remuneration (non-audit services) 83 79
(Profit)/loss on sale of tangible fixed assets (26) 14
Hire of land and buildings under operating leases 27 25 25
FLYING BRANDS LIMITED  ANNUAL REPORT AND ACCOUNTS FOR THE 53 WEEKS ENDED 2 JANUARY 2004
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
7  DIRECTORS’ EMOLUMENTS
2003 2002
£’000 £’000
Fees 118 103
Salary and benefits 475 385
Pension 34 29
627 517
The detailed numerical analysis of Directors’ remuneration is included in the Remuneration Committee Report on page 42 and forms part of
these financial statements.
8  EMPLOYEE INFORMATION
The average monthly number of persons (including Executive Directors) employed by the Group during the year was as follows:
2003 2002
Number Number
335 347
2003 2002
£’000 £’000
Staff costs (for the above persons)
Wages and salaries 5,246 5,576
Social security costs 398 323
5,644 5,899 26
FLYING BRANDS LIMITED  ANNUAL REPORT AND ACCOUNTS FOR THE 53 WEEKS ENDED 2 JANUARY 2004
9  TAX ON PROFIT ON ORDINARY ACTIVITIES
2003 2002
£’000 £’000
Current tax
Jersey income tax at 20% 714 529
UK corporation tax at 20% to 30% 590 514
Over provision in previous years (31) (23)
Total current tax 1,273 1,020
Deferred tax
Decrease in provision for the year (see note 21) (103) (43)
Total tax on profit on ordinary activities 1,170 977
The tax assessed for the period is different from the standard rate of income tax, as explained below: 
2003 2002
£’000 £’000
Profit on ordinary activities before tax 5,575 4,504
Profit on ordinary activities multiplied by the standard rate of Jersey income tax of 20% 1,115 900
Adjustments to tax in respect of prior periods (28) (45)
Adjustments in respect of foreign tax rates (principally UK) 174 156
Expenses not deductible for taxation purposes 14 14
Depreciation in excess of Capital allowances 133 63
Permanent differences (135) (68)
Current tax charge for period 1,273 1,020
10  PROFIT FOR THE FINANCIAL YEAR
Of the profit for the financial year, the parent company’s profit of £108,000 (2002: profit £82,000) is dealt with in the financial statements of
Flying Brands Limited.
NOTES TO THE FINANCIAL STATEMENTS CONTINUED 27
FLYING BRANDS LIMITED  ANNUAL REPORT AND ACCOUNTS FOR THE 53 WEEKS ENDED 2 JANUARY 2004
11  DIVIDENDS
2003 2002
£’000 £’000
Dividends on equity shares:
Interim paid dividend of 2.53p per ordinary share (2002: 2.45p) 662 643
Final proposed dividend of 5.22p per ordinary share (2002: 5.05p) 1,356 1,321
Less over provision in prior year (8) –
2,010 1,964
12  EARNINGS PER ORDINARY SHARE
Basic earnings per share is calculated by dividing the earnings attributable to ordinary shareholders by the weighted average number of
ordinary shares in issue during the year, excluding those held in the employee share trust which have not vested unconditionally to the
employee and are accordingly ignored for this purpose.
Adjusted earnings per share have been calculated to exclude the effect of all exceptional items. Adjusted earnings per share in 2002 have
been restated to reflect tax attributable to the operating exceptional items. The effect of the adjustment is to reduce adjusted earnings
per share in 2002 by 0.25p to 14.31p.
For diluted earnings per share, the weighted average number of ordinary shares in issue is adjusted to assume conversion of all dilutive
potential ordinary shares. The Group has only one category of dilutive potential ordinary shares: those share options granted to
employees where the exercise price is less than the average market price of the Company’s ordinary shares during the year.
2003 2002
Weighted Weighted
average average
Earnings number Earnings number
£’000 of shares £’000 of shares
Basic 4,405 26,124,989 3,527 26,237,051
Diluted 4,405 26,285,229 3,527 26,514,841
NOTES TO THE FINANCIAL STATEMENTS CONTINUED 28
FLYING BRANDS LIMITED  ANNUAL REPORT AND ACCOUNTS FOR THE 53 WEEKS ENDED 2 JANUARY 2004
13  INTANGIBLE FIXED ASSETS
THE GROUP Intellectual
property
£’000
Cost
At 27 December 2002 and 2 January 2004 398
Amortisation
At 28 December 2002 303
Charge for the year 88
At 2 January 2004 391
Net book value at 2 January 2004 7
At 27 December 2002 95
14  TANGIBLE FIXED ASSETS
THE GROUP Freehold land Plant and Motor
and buildings equipment vehicles Total
£’000 £’000 £’000 £’000
Cost or valuation
At 27 December 2002 11,114 14,612 378 26,104
Additions 256 685 53 994
Disposals (265) (1,658) (155) (2,078)
Transfers – (8) 8 –
At 2 January 2004 11,105 13,631 284 25,020
Depreciation
At 27 December 2002 1,366 9,105 195 10,666
Charge for the year 304 1,704 63 2,071
Disposals – (1,634) (125) (1,759)
Transfers – (8) 8 –
At 2 January 2004 1,670 9,167 141 10,978
Net book value at 2 January 2004 9,435 4,464 143 14,042
At 27 December 2002 9,748 5,507 183 15,438
The net book value of fixed assets of £14,042,000 (2002: £15,438,000) includes an amount of £nil (2002: £214,000) in respect of assets
held under finance leases. 
NOTES TO THE FINANCIAL STATEMENTS CONTINUED 29
FLYING BRANDS LIMITED  ANNUAL REPORT AND ACCOUNTS FOR THE 53 WEEKS ENDED 2 JANUARY 2004
15  PROFIT ON SALE OF SUBSIDIARIES AND BUSINESSES
The Group disposed of the Blooms of Bressingham Limited nursery business in 1998, part of the consideration for which was deferred.
During the year the Group received the final settlement of the outstanding amount due which resulted in an exceptional gain of £308,000
being recognised. The group also incurred fees of £21,000 on the liquidation of its Holland subsidiary, Bunches BV the assets of which were
sold in 2000.
16  FIXED ASSET INVESTMENTS
THE GROUP 2003 2002
£’000 £’000
Investments at cost
Own shares
668,140 ordinary shares (2002: 680,437) of 1p each in Flying Brands Limited
(Market value at 2 January 2004: £978,825 (2002: £976,427)) 927 942
Own Shares
These shares are held in an ESOP trust and are all under option to employees and form part of the options described in the Remuneration
Committee Report and Note 23 to the financial statements. None of the option exercise prices are lower than the cost of the shares and
therefore no charge to the profit and loss account arises. All dividends are waived whilst the shares are held in the ESOP trust.
THE COMPANY 2003 2002
£’000 £’000
Investments in wholly owned subsidiary companies at written down cost
Flying Flowers International Limited 9,000 ordinary £1 shares 15,921 15,921
Flying Flowers SARL 500 ordinary Ffr100 shares – 6
Benham Collectors Club Limited 10 ordinary £1 shares 185 185
16,106 16,112
Advances to Group companies
Flying Flowers International Limited 6 5
Flying Brands Holdings (UK) PLC 1,924 1,924
Flying Flowers (UK) Limited 3,358 3,358
21,394 21,399
Own shares (see above) 927 942
22,321 22,341
The loans due from Flying Flowers International Limited, Flying Brands Holdings (UK) PLC and Flying Flowers (UK) Limited are interest-free 
and unsecured with no fixed terms of repayment. In the opinion of the Directors the loans are recoverable in full.
Flying Flowers SARL, which had previously been dormant, was liquidated during the year.
NOTES TO THE FINANCIAL STATEMENTS CONTINUED 30
FLYING BRANDS LIMITED  ANNUAL REPORT AND ACCOUNTS FOR THE 53 WEEKS ENDED 2 JANUARY 2004
16  FIXED ASSET INVESTMENTS CONTINUED
Interest in principal Group undertakings
The Directors consider that to give full particulars of all subsidiary undertakings would lead to a statement of excessive length. The 
following information relates to those subsidiary undertakings whose results or financial position, in the opinion of the Directors, 
principally affect the Group:
Proportion of nominal value 
Country of Description of Principal of issued shares held by
Name of subsidiary incorporation shares held activity Group Company
Flying Flowers (Jersey) Limited Jersey Ordinary £1 shares Mail order flowers 100% –
DPA Direct Limited England & Wales Ordinary £1 shares Mail order plants 100% –
Benham Covers Limited England & Wales Ordinary 10p shares Mail order first day covers 100% –
17  STOCKS
Group Company Group Company
2003 2003 2002 2002
£’000 £’000 £’000 £’000
Raw materials 659 – 1,171 –
Goods for resale 1,673 – 1,466 –
Livestock 13 – 13 –
Growing stock 49 – 186 –
2,394 – 2,836 –
NOTES TO THE FINANCIAL STATEMENTS CONTINUED 31
FLYING BRANDS LIMITED  ANNUAL REPORT AND ACCOUNTS FOR THE 53 WEEKS ENDED 2 JANUARY 2004
18  DEBTORS
Group Company Group Company
2003 2003 2002 2002
£’000 £’000 £’000 £’000
Amounts falling due within one year
Trade debtors 109 – 81 –
Other debtors 57 – 69 52
Prepayments and accrued income 830 – 646 –
Amounts owed by subsidiary undertakings – 2,544 – 4,595
Deferred consideration –– 140 –
996 2,544 936 4,647
Amounts falling due after more than one year
Advance corporation taxation recoverable 21 – 107 –
Deferred consideration –– 548 –
21 – 655 –
Total debtors 1,017 2,544 1,591 4,647
The amounts owed by subsidiary undertakings are interest free and unsecured with no fixed terms of repayment, with the exception of an
amount of £486,000 which bears interest at 2.5% above the bank base rate and which is repayable by monthly installment. 
Deferred consideration relates to amounts arising from the sale of the Blooms of Bressingham Limited nursery business in 1998 and was
repaid during the year ( see note 15 ).
19  CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Group Company Group Company
2003 2003 2002 2002
£’000 £’000 £’000 £’000
Bank loan –– 1,200 –
Net obligations under finance leases (see note 20) –– 89 –
Trade creditors 3,578 – 2,812 –
Current taxation 583 – 706 21
Other creditors and accruals 1,287 – 2,444 –
Dividend payable 1,356 1,356 1,321 1,321
6,804 1,356 8,572 1,342
NOTES TO THE FINANCIAL STATEMENTS CONTINUED 32
FLYING BRANDS LIMITED  ANNUAL REPORT AND ACCOUNTS FOR THE 53 WEEKS ENDED 2 JANUARY 2004
20  CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
Group Company Group Company
2003 2003 2002 2002
£’000 £’000 £’000 £’000
Taxation 1,007 – 937 –
Finance leases
The future lease payments to which the Group is committed under finance leases and hire purchase contracts are as follows:
2003 2002
£’000 £’000
In 1 year or less – 92
Between 2 and 5 years – –
– 92
Less: future finance charges – (3)
– 89
21  PROVISIONS FOR LIABILITIES AND CHARGES
£’000
Deferred tax
At 27 December 2002 248
Credited to the profit and loss account (see note 9) (103)
At 2 January 2004 145
The deferred tax liability is in respect of accelerated capital allowances.
NOTES TO THE FINANCIAL STATEMENTS CONTINUED 33
FLYING BRANDS LIMITED  ANNUAL REPORT AND ACCOUNTS FOR THE 53 WEEKS ENDED 2 JANUARY 2004
22  CALLED-UP SHARE CAPITAL
2003 2002
£’000 £’000
Authorised
35,000,000 Ordinary shares of 1p each 350 350
Allotted, called up and fully paid
26,644,861 (2002: 26,845,500) Ordinary shares of 1p each 267 269
A Shares in Flying Brands Holdings (UK) PLC
26,644,861 (2002: 26,845,500) Ordinary shares of 0.005p each 1 1
268 270
A total of 149,361 shares were issued during the year in satisfaction of employee share options. During the year the company repurchased
350,000 ordinary shares of 1p each with a nominal value of £3,500 for a total consideration of £496,000.
23  OPTIONS IN SHARES OF FLYING BRANDS LIMITED
In addition to the Directors’ share options disclosed in the Directors’ Report the following options have been granted to employees and
remain capable of exercise: 
No. of Ordinary Exercise
Date of Grant Exercise Period Shares Price
18 August 1995 18 August 1998 to 18 August 2005 34,483 106.00p
18 September 1996 18 September 1999 to 18 September 2006 57,043 149.04p
20 August 1997 20 August 2000 to 20 August 2007 39,383 299.67p
14 October 1998 14 October 2001 to 14 October 2008 79,477 117.96p
14 October 1999 14 October 2002 to 14 October 2009 28,987 134.69p
29 December 2000 29 December 2003 to 29 December 2010 56,416 123.00p
21 March 2001 21 March 2004 to 21 March 2011 104,396 108.00p
4 March 2002 4 March 2005 to 4 March 2012 82,156 166.00p
24  SHARE PREMIUM AND RESERVES
THE GROUP Capital
Share Revaluation Capital redemption Profit and
premium reserve reserve reserve loss account
£’000 £’000 £’000 £’000 £’000
At 27 December 2002 15,629 471 (17) 1 (4,018)
Profits retained for the year – – – – 2,395
Share buyback – – – 4 (496)
Transfer between reserves – (7) – – 7
Exchange difference – – – – 12
New issue of shares 102 ––––
At 2 January 2004 15,731 464 (17) 5 (2,100)
NOTES TO THE FINANCIAL STATEMENTS CONTINUED 34
FLYING BRANDS LIMITED  ANNUAL REPORT AND ACCOUNTS FOR THE 53 WEEKS ENDED 2 JANUARY 2004
24  SHARE PREMIUM AND RESERVES CONTINUED
THE COMPANY Capital
Share Revaluation Capital redemption Profit and
premium reserve reserve reserve loss account
£’000 £’000 £’000 £’000 £’000
At 27 December 2002 15,629 – 670 1 9,084
Transfer from profit and loss account – – – – (1,745)
Share buyback – – – 4 (496)
New issue of shares 102 ––––
At 2 January 2004 15,731 – 670 5 6,843
Cumulative historic goodwill written-off to reserves
£’000
At 27 December 2002 and 2 January 2004 3,723
Capital reserve
The capital reserve of the Group comprises a premium of £104,000 which was written-off in 1988 on the purchase of the minority interest in
the subsidiary company, Retreat Farm (1988) Limited, (now Flying Flowers (Jersey) Limited), and the assignment of a loan in 1982 of £87,000.
A gain on sale of subsidiaries of £687,000 arose following a Group reorganisation during 1995.
25  RECONCILIATION OF OPERATING PROFIT TO NET CASH INFLOW FROM OPERATING ACTIVITIES
2003 2002
£’000 £’000
Operating profit 5,190 4,592
Depreciation 2,071 2,119
(Profit)/loss on sale of tangible fixed assets (3) 14
Decrease/(increase) in stocks 442 (391)
Decrease/(increase) in debtors 270 (289)
(Decrease)/increase in creditors (369) 329
Amortisation of other intangible assets 88 87
Net cash inflow from operating activities 7,689 6,461
NOTES TO THE FINANCIAL STATEMENTS CONTINUED 35
FLYING BRANDS LIMITED  ANNUAL REPORT AND ACCOUNTS FOR THE 53 WEEKS ENDED 2 JANUARY 2004
26  RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS/(DEBT)
2003 2002
£’000 £’000
Increase in cash in the year 2,729 1,136
Cash outflow from reduction in debt and lease financing 1,289 1,118
Movement in net debt in the year 4,018 2,254
Net debt at 27 December 2002 (98) (2,352)
Net funds / (debt) at 2 January 2004 3,920 (98)
27  ANALYSIS OF CHANGES IN NET DEBT
At At
27 December 2 January
2002 Cash flows 2004
£’000 £’000 £’000
Cash at bank and in hand 1,191 2,729 3,920
Debt due within 1 year (1,200) 1,200 –
Debt due after 1 year –– –
Finance leases (89) 89 –
Total (98) 4,018 3,920
28  COMMITMENTS
Financial Commitments
At 2 January 2004 the Group had annual commitments under non-cancellable operating leases as follows:
2003 2002
Land & Land &
buildings buildings
£’000 £’000
Expiring between 1 and 2 years 2 8
Expiring between 2 and 5 years 25 17
27 25
Capital Commitments
2003 2002
£’000 £’000
Authorised and contracted for 128 147
NOTES TO THE FINANCIAL STATEMENTS CONTINUED 36
FLYING BRANDS LIMITED  ANNUAL REPORT AND ACCOUNTS FOR THE 53 WEEKS ENDED 2 JANUARY 2004
29  CONTINGENT LIABILITIES
(a) All Jersey and UK based Group companies have given unlimited guarantees to Barclays Bank PLC in respect of facilities provided to the
Group.
(b) There are unregistered promissory notes of £8,250,000 in respect of the Group’s freehold property.
(c) The Company provided a guarantee in respect of an operating lease commitment of Stanley Gibbons Holdings Plc (part of The Stanley
Gibbons Group Limited) on 16 August 2000. The lease is for £300,000 p.a. and expires in 2010.
30  FINANCIAL INSTRUMENTS
The section headed Treasury Policy within the Financial Review on page 12 details the Group’s policy for the holding and issuing of financial
instruments. FRS 13 ‘Derivatives and other financial instruments disclosures’ requires numerical  disclosures in respect of financial assets and
liabilities and these are set out below. The Group has taken advantage of the exemption available under the FRS and details in respect of
short term debtors and creditors are accordingly excluded. The Group has no financial assets other than cash, investments and debtors.
(a) Fair value of financial assets and liabilities
2003 2002
Book value Book value
£’000 £’000
Financial assets
Cash at bank and in hand 3,920 1,191
Fixed asset investments (note 16) 927 942
Other amounts receivable after more than 1 year – deferred consideration – 548
4,847 2,681
Financial liabilities
Bank loans – 1,200
Finance leases – 89
– 1,289
The fair value which has been calculated by discounting expected cash flows at prevailing interest rates at the year end is not materially
different from the book value.
(b) Maturity and Interest Rate Profile
The maturity profile of the carrying amount of the group’s financial liabilities other than short term trade creditors and accruals, which are all
documented in £sterling, at 2 January 2004 was as follows:
2003 2002
Loans Finance leases Total Loans Finance leases Total
£’000 £’000 £’000 £’000 £’000 £’000
Within 1 year or on demand ––– 1,200 89 1,289
Between 1 and 2 years ––– –––
Between 2 and 5 years ––– –––
––– 1,200 89 1,289
NOTES TO THE FINANCIAL STATEMENTS CONTINUED 37
FLYING BRANDS LIMITED  ANNUAL REPORT AND ACCOUNTS FOR THE 53 WEEKS ENDED 2 JANUARY 2004
30  FINANCIAL INSTRUMENTS CONTINUED
The interest rate profile of the Group’s financial liabilities at 2 January 2004 was as follows:
2003 2002
Loans Finance leases Total Loans Finance leases Total
Weighted average rate of interest ––– 5.00% 7.50% 5.32%
Weighted average period for
which rate is fixed (years) ––– –––
The Group had no borrowing facilities in place at the year end.
(c) Currency exposures
Foreign currency exposure based on net foreign currency monetary assets is £nil (2002: £nil).
(d) Gains and losses on hedges
There are no unrecognised or deferred gains and losses on hedges on long term liabilities.
31  PENSION ARRANGEMENTS
For many employees the Group makes contributions to personal defined contribution schemes based on a fixed percentage of those
employees’ basic remuneration.
32  RELATED PARTY
Mr T H S Trotter is Chairman of Smithfield Consultants Limited, who were paid £33,850 during the year for financial public relations
consultancy services.
NOTES TO THE FINANCIAL STATEMENTS CONTINUED 38
FLYING BRANDS LIMITED  ANNUAL REPORT AND ACCOUNTS FOR THE 53 WEEKS ENDED 2 JANUARY 2004
1999 2000 2001 2002 2003
£’000 £’000 £’000 £’000 £’000
Turnover 49,632* 43,414* 32,810 36,574 35,331
Operating profit before exceptional items and goodwill 5,432 3,533 4,671 4,889 5,190
Net interest (payable)/receivable (331) (396) (216) (88) 75
5,101 3,137 4,455 4,801 5,265
Exceptional items (8,009) (175) (104) (297) 23
Goodwill (434) – – – –
(Loss)/profit on sale of subsidiaries and businesses (4,489) (2,908) – – 287
Profit/(loss) before taxation (7,831) 54 4,351 4,504 5,575
Taxation (1,028) (874) (899) (977) (1,170)
Profit/(loss) after taxation (8,859) (820) 3,452 3,527 4,405
Dividends (1,945) (1,941) (1,930) (1,964) (2,010)
Retained profit/(loss) (10,804) (2,761) 1,522 1,563 2,395
Adjusted earnings per share 15.43p 10.73p 13.52p 14.31p 15.67p
Earnings per share (33.55)p (3.10)p 13.13p 13.43p 16.86p
Dividends per share 7.35p 7.35p 7.35p 7.50p 7.75p
Share capital and premium 22,979 15,817 15,817 15,899 15,999
Reserves (6,854) (6,369) (5,128) (3,563) (1,648)
Net assets excluding goodwill 16,125 9,448 10,689 12,336 14,351
*These results include companies disposed of and demerged during the relevant periods.
FIVE YEAR SUMMARY 39
FLYING BRANDS LIMITED  ANNUAL REPORT AND ACCOUNTS FOR THE 53 WEEKS ENDED 2 JANUARY 2004
We have audited the financial statements which comprise the consolidated profit and loss account, the statement of total recognised gains
and losses, the reconciliation of movements in equity shareholders’ funds, the balance sheets, the consolidated cash flow statement and the
related notes.
RESPECTIVE RESPONSIBILITIES OF DIRECTORS AND AUDITORS
The directors’ responsibilities for preparing the annual report and the financial statements in accordance with applicable Jersey law and
United Kingdom accounting standards are set out in the statement of directors’ responsibilities.
Our responsibility is to audit the financial statements in accordance with relevant legal and regulatory requirements and United Kingdom
Auditing Standards issued by the Auditing Practices Board. This report, including the opinion, has been prepared for and only for the
company’s members as a body in accordance with Article 110 of the Companies (Jersey) Law 1991 and for no other purpose. We do not, in
giving this opinion, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or in to whose
hands it may come save where expressly agreed by our prior consent in writing.
We report to you our opinion as to whether the financial statements give a true and fair view and have been properly prepared in accordance
with the Companies (Jersey) Law. We also report to you if, in our opinion, the directors’ report is not consistent with the financial statements,
if the company has not kept proper accounting records, if we have not received all the information and explanations we require for our audit
or if information specified by the Listing Rules regarding directors’ remuneration and transactions is not disclosed.
We read the other information contained in the Annual Report and consider the implications for our report if we become aware of any
apparent misstatements or material inconsistencies with the financial statements. The other information comprises the chairman’s statement,
the chief executive’s report, the financial review, the directors’ and corporate governance report, and the remuneration committee report.
We review whether the corporate governance statement reflects the company’s compliance with the seven provisions of the Combined Code
specified for our review by the Listing Rules of the Financial Services Authority, and we report if it does not. We are not required to consider
whether the board’s statements on internal control cover all risks and controls, or to form an opinion on the effectiveness of the group’s
corporate governance procedures or its risk and control procedures.
BASIS OF AUDIT OPINION
We conducted our audit in accordance with auditing standards issued by the Auditing Practices Board. An audit includes examination, on a
test basis, of evidence relevant to the amounts and disclosures in the financial statements. It also includes an assessment of the significant
estimates and judgements made by the directors in the preparation of the financial statements, and of whether the accounting policies are
appropriate to the group’s circumstances, consistently applied and adequately disclosed.
We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide
us with sufficient evidence to give reasonable assurance that the financial statements are free from material misstatement, whether caused by
fraud or other irregularity or error. In forming our opinion, we also evaluated the overall adequacy of the presentation of information in the
financial statements.
OPINION
In our opinion the financial statements give a true and fair view of the state of affairs of the company and of the group at 2 January 2004
and of the profit and cash flows of the group for the year then ended in accordance with United Kingdom accounting standards and have
been properly prepared in accordance with the Companies (Jersey) Law 1991.
PricewaterhouseCoopers
Chartered Accountants
Jersey, Channel Islands
3 March 2004
The maintenance and integrity of the Flying Brands Limited web site is the responsibility of the directors; the work carried out by the auditors
does not involve consideration of these matters and, accordingly, the auditors accept no responsibility for any changes that may have
occurred to the financial statements since they were initially presented on the web site.
Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other
jurisdictions.
AUDITORS’ REPORT
Independent Auditors Report to the members of FLYING BRANDS LIMITED 40
FLYING BRANDS LIMITED  ANNUAL REPORT AND ACCOUNTS FOR THE 53 WEEKS ENDED 2 JANUARY 2004
The Remuneration Committee presents their report for the 53 weeks ended 2 January 2004.
MEMBERSHIP OF THE REMUNERATION COMMITTEE
At 2 January 2004, the Remuneration Committee is comprised of Mr LM Sanderson (Chairman) and Mr THS Trotter, the two independent
non-executive Directors on the Board. Mr PI Fraser and Mr AR Fryer resigned from the Remuneration Committee on 1 September 2003.
The Committee makes its decisions following consultation with the Chief Executive and the other non-executive Directors. No other third
parties have provided advice that materially assisted the Remuneration Committee during the year.
The remuneration of the non-executive Directors is determined by the Board. 
COMPLIANCE
The Company has complied materially with The United Kingdom Directors’ Remuneration Report Regulations 2002 (“the Regulations”). In
accordance with the Regulations, a resolution to approve this report will be proposed at the Annual General Meeting (“AGM”) of the
Company. The vote will have advisory status, will be in respect of the remuneration policy and overall remuneration packages and will not be
specific to individual levels of remuneration.
The only area in which the Company does not comply with the Regulations concerns the terms of engagement of the non-executive
Directors. None of the non-executive Directors have a fixed term of office in their letters of appointment. The Company has agreed a policy
that non-executive Directors will not exceed 6 years in their role from the date of the board restructuring in March 2002 other than in
exceptional circumstances. 
REMUNERATION POLICY FOR EXECUTIVE DIRECTORS
The Remuneration Committee seeks to provide the remuneration packages necessary to attract, retain and motivate executive Directors of
the quality required to manage the business of the Group and seeks to avoid paying more than is necessary for this purpose. In establishing
the level of remuneration of each Director the Committee has regard to packages offered by similar companies. 
Consistent with this policy, the benefit packages awarded to Executive Directors comprise a mix of performance and non-performance
elements. The proportion of each executive Director’s pay that is based on performance ranges from 31% for the Chief Executive if the
Group achieves a 17.5% increase in adjusted Earnings Per Share (“EPS”), to 29% for each of the other executive Directors if the Group
achieves a 25% increase in adjusted EPS over the prior year. 
The main components of the remuneration packages for executive Directors are:
a) Contracts
All executive Directors have a one-year rolling service contract and contractual termination payments in all cases equal the value of director’s
annual salary together with benefits and accrued bonus.
b) Basic salary and benefits
Salaries and benefits are approved annually. Basic benefits include a fully expensed company car together with private medical insurance,
death in service cover and PHI.
c) Bonuses
There are 2 separate bonus schemes.
The Chief Executive has a contractual scheme that is based on the increase in adjusted EPS over the prior year. Payments start at the level of
20% of salary for the achievement of 5% plus the increase in the retail price increase for the year ("RPI") over prior year, and increases at
2.5% for each additional 1% increment in EPS. The maximum payment under the scheme is 45% for achievement of 15% plus RPI of
adjusted EPS above prior year.
The other two Executive Directors also have contractual schemes based on an increase in adjusted EPS. These payments commence at a
payment of 2.5% of salary for achievement of a 5% increase in adjusted EPS and increases up to a maximum of a 40% bonus for an
increase of 25% in adjusted EPS over the prior year.
REMUNERATION COMMITTEE REPORT 41
FLYING BRANDS LIMITED  ANNUAL REPORT AND ACCOUNTS FOR THE 53 WEEKS ENDED 2 JANUARY 2004
REMUNERATION COMMITTEE REPORT CONTINUED
d) Share Option Schemes
Awards of Share Options to Directors and senior employees have been made in the past as an incentive to improve the Group’s performance. 
The previous scheme was set up in 1993 for a period of 10 years and no further options can now be granted under that scheme. Exercise of
options granted under the 1993 scheme are subject to a performance condition. The condition is that an average annual increase in the
adjusted EPS in excess of 5% plus RPI must have been achieved during any consecutive three year period prior to the date of exercise of the
option, with the first year commencing no earlier than the financial year ending in the 12 months prior to the date the option was granted.
A new scheme has been proposed to commence on 1 May 2004, and details of this are included in the attached circular to shareholders.
e) Pensions
Executive Directors select a money purchase scheme and the company makes a payment of 9% of salary, excluding bonus and benefits, per
year to the chosen scheme.
PERFORMANCE GRAPH
As required by the Regulations the graph below shows the performance of Flying Brands Limited, measured by total shareholder return (total
share price growth plus dividends paid), against a ‘broad equity market index’ over the past five years. We have chosen the All Share Index
because this is a recognised broad equity market index of which Flying Brands Limited is a member.
The Group has performed ahead of the All Share Index since the demerger of Stanley Gibbons Group Limited in September 2000.
130
120
110
100
90
80
70
60
50
40
1999 2000 2001 2002 2003
Flying Brands – TOT Return Index
FTSE Actuaries All Share – TOT Return Index
source: DATASTREAM 42
FLYING BRANDS LIMITED  ANNUAL REPORT AND ACCOUNTS FOR THE 53 WEEKS ENDED 2 JANUARY 2004
REMUNERATION COMMITTEE REPORT CONTINUED
NON-EXECUTIVE DIRECTORS
The non-executive Directors’ terms of engagement are set out in a letter of appointment. The Chairman has a one-year notice period. The
other non-executive Directors have a six-month notice period unless they are not re-elected at the AGM. None of the non-executive Directors’
appointments have a fixed term.
DIRECTORS’ INTERESTS IN 2 January 27 December
THE COMPANY’S SHARES 2004 2002
T K Boden 27,900 27,900
M T N Dugdale 30,000 30,000
P I Fraser 5,646,719 5,646,719
A R Fryer 15,500 15,500
D C Harbord 1,000 1,000
L M Sanderson 30,012 30,012
T H S Trotter 13,000 13,000
The Directors’ interests in shares are all beneficial.
There has been no change in the interests set out above between 2 January 2004 and 3 March 2004.
AUDITABLE INFORMATION
The following tables and supporting notes have been audited:
DIRECTORS’ EMOLUMENTS 2003 2002
Salary & Fees Bonus Pension Benefits Total Total
£’000 £’000 £’000 £’000 £’000 £’000
A R Fryer 60––– 60 49
M T N Dugdale 178 45 16 14 253 39
D C Harbord 96 12 9 12 129 126
T K Boden 76 978 100 85
P I Fraser 18––– 18 16
L M Sanderson 20––– 20 19
T H S Trotter 20––– 20 19
T Dunningham* 22 – 2 3 27 112
R L Norbury ––––– 22
A R J Grodecki ––––– 7
DN Nightingale ––––– 23
490 66 34 37 627 517
* Employed by the Group as a Director for Part of the year.
Included in operating exceptional items in the previous financial year were amounts of £10,000 and £116,000 which were paid following the
retirement of R L Norbury and D N Nightingale.
Mr MTN Dugdale is a non-executive Director of Digivate Limited. He receives an annual fee of £6,000 and attends meetings, as agreed, in
time allowed by the Group.  43
FLYING BRANDS LIMITED  ANNUAL REPORT AND ACCOUNTS FOR THE 53 WEEKS ENDED 2 JANUARY 2004
REMUNERATION COMMITTEE REPORT CONTINUED
DIRECTORS’ SHARE OPTIONS Earliest Exercise
exercise Expiry price Number at Granted Exercised Number at
Date of grant date date (1p shares) 27 Dec 2002 in year in year 2 Jan 2004
M T N Dugdale
04.11.02 04.11.05 04.11.12 124.00 282,258 – – 282,258
DC Harbord
07.04.99 07.04.02 07.04.09 131.51 98,879 – – 98,879
21.03.01 21.03.04 21.03.11 108.00 78,703 – – 78,703
04.03.02 04.03.05 04.03.12 166.00 42,169 – – 42,169
219,751 – – 219,751
T K Boden
18.09.96 18.09.99 18.09.06 149.04 19,463 – – 19,463
14.10.98 14.10.01 14.10.08 117.96 18,019 – – 18,019
29.12.00 29.12.03 29.12.10 123.00 22,561 – – 22,561
04.03.02 04.03.05 04.03.12 166.00 37,349 – – 37,349
97,392 – – 97,392
P I Fraser
14.10.98 14.10.01 02.09.05 117.96 144,156 – – 144,156
All share options were granted at nil cost to the directors and were in respect of past performance.
No share options have lapsed during the financial year ended 2 January 2004 and none of the terms and conditions of the share options was
varied during the year.
The market price of the shares on 16 February 2004 was £1.55. The range of market prices during the year was between £1.20 and £1.63.
The options referred to above have been granted under the UK and Jersey Executive Share Option Schemes and Employee Share Ownership
Plan. These schemes lapsed in 2003 and no further grants can be made under these schemes. The terms of a new proposed scheme are
being circulated to shareholders for approval at the AGM.
Apart from the share option schemes described above, the Group is not party to any arrangements whereby Directors or their families may
acquire interests in the Company or any other company.
L M Sanderson
Chairman of the Remuneration Committee
3 March 2004 44
FLYING BRANDS LIMITED  ANNUAL REPORT AND ACCOUNTS FOR THE 53 WEEKS ENDED 2 JANUARY 2004
Notice is hereby given that the Annual General Meeting of Flying Brands Limited will be held at Retreat Farm, St Lawrence, Jersey, Channel Islands
on Wednesday 14 April 2004 at 9.30 am for the following purposes:
Ordinary Business
Resolution 1 To receive and adopt the accounts for the 53 weeks ended 2 January  2004 and the Reports of the Directors and Auditors thereon.
Resolution 2 To approve the Remuneration Committee Report for the 53 weeks ended 2 January 2004.
Resolution 3 To declare a final net dividend for the 53 weeks ended 2 January 2004 of 5.22 pence per share.
Resolution 4 To re-appoint Mr T K Boden, who retires in accordance with Article 117 of the Articles of Association and offers himself for re-election, as a Director of
the Company.
Resolution 5 To re-appoint Mr P I Fraser, who retires in accordance with Article 117 of the Articles of Association and offers himself for re-election, as a Director of
the Company.
Resolution 6 To re-appoint Mr T H S Trotter, who retires in accordance with Article 117 of the Articles of Association and offers himself for re-election, as a Director
of the Company.
Resolution 7 To re-appoint PricewaterhouseCoopers, Channel Islands, as Auditors of the Company and to authorise the Directors to determine their remuneration.
Special Business
To consider the following business and if thought fit to pass Resolution 8 as a Special Resolution and Resolutions 9 and 10 as Ordinary Resolutions:
Resolution 8 That the Company be generally and unconditionally authorised pursuant to Article 57(2) of the Companies (Jersey) Law 1991 to make one or more
market purchases of its own shares, such purchases to be of Ordinary Shares of 1p each in the capital of the Company (“Ordinary Shares”) on the
London Stock Exchange, provided that:
a) the maximum number of Ordinary Shares hereby authorised to be purchased shall be 2,664,486 Ordinary Shares, being approximately 10 per cent of
the issued capital of the Company; 
b) the minimum price which may be paid for any such Ordinary Shares shall be 1p per Ordinary Share (exclusive of expenses); 
c) the maximum price which may be paid for such Ordinary Shares shall be an amount equal to 5 per cent above the average middle market quotations
for a Unit (comprising one Ordinary Share and one “A” ordinary share of Flying Brands Holdings (UK) PLC) as derived from the Daily Official List of
the UK Listing Authority for the five business days immediately preceding the day on which any such Ordinary Shares are purchased or contracted to
be purchased; 
d) unless otherwise varied renewed or revoked the authority hereby conferred shall expire at the earlier of 31 July 2005 and the conclusion of the
Annual General Meeting of the Company to be held in 2005; 
e) prior to expiry of the authority hereby conferred the Company may enter into a contract or contracts for the purchase of Ordinary Shares which may
be executed in whole or in part after such expiry and may purchase Ordinary Shares pursuant to such contract or contracts as if the authority hereby
conferred had not so expired.
Resolution 9 That the directors be and are hereby authorised to:
a) establish The Flying Brands 2004 UK Executive Share Option Scheme (the “Approved Scheme”), a copy of the draft rules of which has been
produced to the meeting and initialled, for the purpose of identification only, by the Chairman and a summary of the main provisions of which is set
out in the Chairman’s letter to shareholders dated 3 March 2004 (“the letter”); and
b) do all acts and things necessary or expedient to give effect to the Approved Scheme, including amending the Approved Scheme as may be necessary
to ensure that the Approved Scheme is approved by the Board of Inland Revenue.
Resolution 10 That the directors be and are hereby authorised to:
a) establish The Flying Brands 2004 Jersey Executive Share Option Scheme (the “Unapproved Scheme”), a copy of the draft rules of which has been
produced to the meeting and initialled, for the purpose of identification only, by the Chairman and a summary of the main provisions of which is set
out in the letter; and
b) do all acts and things necessary or expedient to give effect to the Unapproved Scheme.
By Order of the Board
D C Harbord, Secretary
Notes:
1 Subject to note 3 below any member entitled to attend and vote at the meeting may appoint one or more proxies to attend and, on a poll, vote on their behalf who
need not be members of the Company. The lodging of a proxy will not prevent a member from attending the meeting and voting in person.
2 To be valid the instrument appointing a proxy, together with any necessary authority (if any) under which it is executed needs to be lodged with the Company’s
Registrars, Capita IRG plc, Balfour House, 390-398 High Road, Ilford, Essex IGl 1BR not less than 48 hours before the time for commencement of the meeting.
3 Pursuant to Regulation 34 of the Uncertificated Securities Regulations 1995 the Company hereby gives notice that only those shareholders registered on the Register
of Members as at 11.00 am on 12 April 2004 shall be entitled to attend and vote at the meeting in respect of the number of shares registered against their name at
that time.
4 Copies of the Director’s service agreements and a summary of their interests and transactions in shares of the Company are available during normal business hours at
the offices of the Company’s Registrar and at the meeting for the period of 15 minutes prior to commencement and its conclusion.
NOTICE OF ANNUAL GENERAL MEETING FLYING BRANDS
DELIVERING VALUE THAT EXCEEDS
EXPECTATIONS TO ITS CUSTOMERS
AND ITS SHAREHOLDERS
CONTENTS
FINANCIAL HIGHLIGHTS 01
FLYING BRANDS AT A GLANCE 02
CHAIRMAN’S STATEMENT 03
CHIEF EXECUTIVE’S REPORT 04
FINANCIAL REVIEW 11
DIRECTORS AND ADVISORS 13
FINANCIALS
DIRECTORS’ & CORPORATE GOVERNANCE REPORT 14
CONSOLIDATED PROFIT AND LOSS ACCOUNT 17
STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES 18
RECONCILIATION OF MOVEMENTS IN EQUITY 
SHAREHOLDERS’ FUNDS 18
BALANCE SHEETS 19
CONSOLIDATED CASH FLOW STATEMENT 20
NOTES TO THE FINANCIAL STATEMENTS 21
FIVE YEAR SUMMARY 38
AUDITORS’ REPORT 39
REMUNERATION COMMITTEE REPORT 40
NOTICE OF ANNUAL GENERAL MEETING 44
FINANCIAL CALENDAR
AGM 14 APRIL 2004
PAYMENT OF 2003 FINAL DIVIDEND 16 APRIL 2004
INTERIM RESULTS ANNOUNCED 8 SEPTEMBER 2004 ANNUAL REPORT AND ACCOUNTS
FOR THE 53 WEEKS ENDED 2 JANUARY 2004
FLYING BRANDS LIMITED ANNUAL REPORT AND ACCOUNTS FOR THE 53 WEEKS ENDED 2 JANUARY 2004
MAXIMISING OPPORTUNITIES,
MINIMISING RISKS, DELIVERING VALUE
www.fbgl.co.uk
www.flyingflowers.com
www.gardeningdirect.com
www.listen2books.co.uk
www.benhamcovers.com
www.victory-cards.com
FLYING BRANDS LIMITED
REGISTERED OFFICE 
& HEADQUARTERS
Retreat Farm
St Lawrence
Jersey JE3 1GX
UK OFFICE
Kelvedon Park
London Road
Rivenhall 
Witham
Essex CM8 3HB