Repositioned MBL narrows losses
LANCASHIRE group MBL has narrowed losses as it continues to shift its focus to reduce its exposure to the home entertainment market.
Two years ago its lost 79% of its revenues when supermarket group Morrisons axed a contract for the supply of CDs and DVDs.
In the year to the end of March revenues fell from £28.1m to £15.8m and the group made a pre-tax loss of £1.5m, compared to £8.8m last time.
Revenue from continuing operations slipped to £13m from £15.1m and the pre-tax loss, on a continuing basis, was down to £500,000 from £700,000.
The Leyland-based firm previously distributed CDs and DVDs to large retailers but it is now trying to rebuild itself with less focus on the home entertainment market.
This has involved a move into gardening and bird feeding products through two new businesses, Garden Bird Supplies and Garden Centre Online.
Its home entertainment arm is based in Kent and consists of DVD and CD exporter Windsong and wholesaler MBL Direct. It has wound up a number of its other businesses such as Bee.com and Music Box Leisure.
Non-executive chairman Peter Cowgill said: “The group has completed the wind-down of its unprofitable home entertainment activities and made the first steps during the year to redress its dependence on this weak sector, with the entry into the garden and leisure market in May 2012. The group is now in a position to focus fully on its future and on growing its continuing businesses. “
MBL remains debt free with cash balance of £3.1m at year end.
