Freddie’s Flowers has cut more than a quarter of its staff as the e-commerce business posted a second consecutive year of declining revenues.

The London-based flower subscription business has reduced its total headcount to just over 200, down from 271 last year, accounts filed this week with Companies House show. That is down by nearly 60% compared to 2022.

Revenues for the year to end August 2024 slipped 8.2% to £35.7m — a fall of more than a third compared to 2022 levels — while pre-tax losses were cut from £2m to just under £1m.

The figures mark the culmination of a difficult period for the startup, now in its tenth year, after a surge in customer demand during the pandemic unravelled as normal shopping habits resumed.

“Following the challenging economic environment since 2022, our focus has shifted to profitability over growth,” Freddie’s Flowers said.

“Our aim was to break-even whilst continuing to invest in growth initiatives, which we’re pleased to have delivered…we’re [optimistic the] initiatives we’re investing in will deliver growth in the coming year, whilst we maintain a keen focus on profitability.”

Freddie’s Flowers courted media attention in 2020 after the firm launched an unusual style of bond to raise money for its growth. Regular customers were invited to invest in the multi-million debt financing through the purchase of ‘flower bonds’ which paid out twice yearly cash payments of 5% per annum or regular boxes of flowers worth 7.5%. The four-year bonds are now thought to have matured entirely.

Founder Freddie Garland vowed to use the proceeds to begin a period of international expansion, with operations in Germany, the Netherlands and California. It has since pulled out of the Netherlands and California to focus on Germany and the UK.

Garland, 37, set up the company in a gazebo in his parents’ back garden after quitting his job at organic food group Abel & Cole. The company raised $60m in a funding round in August 2021.

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