MBL reports 10% sales increase

MBL, the slimmed-down AIM-listed Lancashire company has reported a 10% increase in annual revenues from continuing operations.

The group, which was previously a major supplier of home entertainment to one of the major supermarkets, has been forced to radically downsize over the last three years since losing its contract with Morrisons.

It now has a  business-to-business Home Entertainment division and two smaller consumer brands, The Garden & Home Trading Co, which sells garden bird and wildlife related products via mail order and the Garden Centre Online, which sells garden and plant products.

Having moved from Chorley to a smaller site in Preston, MBL said sales in the year to the end of March were up 10% to £12.5m, while losses before tax were unchanged at £800,000.

The lion’s share of revenues, £9.5m, came from the Home Entertainment division, which grew 10% during the year.  Gross profit margins reduced from 16% to 14%, due to market conditions and as a consequence operating profit fell 40% to £300,000.

MBL said its Garden & Leisure division had seen bird feed sales hit by the mild winter, but good progress had been made in raising brand awareness.

The firm said the  level of losses reflected the investment being made in its operations and profitability is expected to improve in the coming year.

Non-executive chairman Tony Johnson, said: “We are pleased to report that the Group made solid progress during the year in strengthening its core operations. Sales within both the Home Entertainment and Garden & Leisure divisions grew during the year with significant investments made into developing the brands acquired in the previous year.”

MBL, which now has 53 staff, did not pay a dividend.