MBL reins in losses

LANCASHIRE group MBL has cut losses as it continues to reposition itself.

The Leyland-based firm previously distributed CDs and DVDs to large retailers but it is now trying to rebuild itself as a direct-to-consumer business less focused on the home entertainment market.

It operates Windsong, a business selling rare CDs and DVDs, has four Bee.com stores and a consumer website, and is now selling gardening equipment and bird feeding products through two new businesses, Garden Bird Supplies and Garden Centre Online.

Sales at Windsong fell 31% to £3.7m due to “weak market conditions” while MBL Direct, a wholesaler to independent and internet retailers fell 50% to £1m.

But revenue at its shops grew 200% to £1.3m, reflecting the first full trading period. Gardening sales generated £1m.

In the six months to the end of September group revenue halved to £7.4m, reflecting the closure of parts of the business such as Music Box Leisure. Pre-tax losses fell to £1.1m from £7.2m last time.

Last year MBL lost three quarters of its revenues when supermarket group Morrisons axed a contract for the supply of CDs and DVDs.

Chairman Peter Cowgill said: “The group has experienced a period of significant change within the reported six months whilst it focused on the integration of newly acquired businesses and adapting its existing businesses to the ongoing challenges within the home entertainment industry.

“The group has made progress towards completing the wind down of its discontinued operations and is better positioned to focus on its future.”

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