Losses rise at MBL

MBL Group, the AIM-listed entertainment and gardening products supplier has reported  “satisfactory” half year results, as sales nudged ahead, but losses increased.

The Preston company said it had continued to be affected by a lack of supplier credit and that it had ceased trading its Garden Centre Online brand due to the level of additional investment required to improve its trading performance in a highly competitive market.

In the six months to September 30, MBL’s revenues on continuing operations rose 5% to £5.9m but losses before tax doubled to £400,000. The company said overheads had risen “as a result of costs incurred relating to board changes and strategic advice.”

The reference to boardroom changes retlates to the resignation in June of non-executive  chairman Peter Cowgill, who left the business after a disagreement with the rest of the board over future strategy.

Chairman Tony Johnson, said: “The group has delivered a satisfactory first six months performance. The Home Entertainment division has experienced challenging trading conditions and the group has continued to invest in the Garden and Leisure division to develop future revenue streams.  

“Group revenue increased by 5% and, as a result of trading conditions and continued investment, generated an operating loss for the six months to 30 September 2014.

“The board has been reviewing the future strategy for the Group and continues to evaluate means to return value to shareholders.”

He added: “The board believes that the investments being made into the Garden and Leisure division, both in terms of growing the customer base and recent relocation of the operations, have placed the division in a solid position to deliver future profitability.”

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