One-off costs put up-for-sale company on back foot
MBL Group, the AIM-listed entertainment and gardening products supplier based in Preston, which was up for sale a month ago has been plunged into a £200,000 loss by a series of one-off exceptional costs totalling £453,000.
Chris Jones has also left the board with immediate effect and Peter Palframan, who has 45 years’ experience a number of boards, both public and private, including fully listed, private equity and venture capitalist backed, has joined as non-executive director. He has also represented major banks.
Group revenue climbed 13% to £7.54m (H1 2015: £6.7m) in the six months to September 30 and the company would have made a pre-tax profit of £200,000 without the exceptional costs, which the company gives no details about in its report.
The group ended the period with cash balances of £1.5m (2015: £1.8m). The net cash outflow from operating activities was £300,000 (H1 2015: inflow of £100,000). The group remains debt free.
Chairman Tim Jackson-Smith said: “I am pleased to report that during the period all of the trading businesses within the group continued to perform well, were profitable, cash generative and on average delivered a 13% growth in sales.
“However, the group did incur significant exceptional, one-off costs in the first six months of this current financial year and these have led to a loss in the period at group level.
“The group recently announced that it had begun a strategic review with the aim of maximizing value for our shareholders and we believe that a third party may be better placed to develop the potential in our trading businesses and take them forward to the next phase of their development.
“Accordingly, the Board is going to carry out a formal sales process regarding each business and will update shareholders in due course as to progress.”
