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SLIP OF THE LIP CAUSES PLUNGE IN FLYING FLOWERS' SHARE PRICE

News, 01 August 1997

Flying Flowers, the plants-by-mail company, saw its share price sag despite a 106% increase in its first half profits to £3.36m. The anomaly was triggered by an over-cautious statement by chairman Walter Goldsmith, who warned that profits growth in the second half is 'unlikely to match the first half'. Goldsmith had clearly not reckoned with the hypersensitivity [and product ignorance] of the City leeches who went supersonic, marking-down shares by 18p to 384p. The company then took the highly unusual step of issuing a second statement emphasising that it expected 'substantial profits growth...in line with expectations'. Goldsmith also gently explained to the Square Mile morons what every gardener knows: sales of bedding plants peak in the spring - not the autumn!