Dealing in MBL shares restarts but gloomy outlook continues

Suspension in the trading of shares in Preston-based entertainment and gardening products supplier MBL Group has been lifted following the appointment of a non-executive director.

The AIM-listed company said that Anton Lane, 43, had joined the board with immediate effect and that Tim Jackson-Smith will remain in the company to ensure an orderly handover.

An executive director would be appointed “as soon as practicable”, the company said.

It went on: “Following this appointment, there is no longer any uncertainty over the company’s ability to conduct its business and therefore suspension of trading in our ordinary shares will be lifted.”

MBL was put up for sale in August after posting a loss of £158,000 for the year and said the suspension was “due to uncertainty over whether the board is able to properly conduct the business of the company given that it has only one director”.

Meanwhile the firm said the business was “materially behind where it was this time last year both in terms of profit and turnover”.

“We are not expecting a significant turnaround during the busy Christmas trading period and consequently the full year forecast is expected to be materially behind the prior year,” it said.

The company has incurred a number of exceptional costs related to the sale process.

“This, combined with the performance of the Home Entertainment Division has led to a loss at group level for the year to date.

“The directors do not anticipate this position changing materially in the second half of this financial year although it is expected that there will be less costs incurred in connection with the sale process in that period.

“The board can also confirm that it is reviewing the group’s cost base in response to the lower than expected turnover in order to mitigate the size of the expected loss in the year.”