Sales boost for Air Music & Media

DVD and CD distributor Air Music & Media Group today said that sales are ahead of last year and it is likely to start paying a dividend.

The Lancashire-based company’s chairman Peter Cowgill will tell shareholders at the group’s AGM today that it is “mindful” of current consumer confidence as it goes into the crucial Christmas trading period.

Mr Cowgill, executive chairman of JD Sports Fashion, said that the Leyland group’s sales for the current financial year are ahead of last year and despite margin pressure, the management team is pleased with the current performance.

Air Music & Media distributes CDs, DVDs and computer games and consoles to retailers across the UK

Mr Cowgill said: “Our distribution business has secured new customers in the early part of the 2008/09 financial year which has led to an increase in sales in the financial year to date compared to the same period last year. The wholesale business, which is a much smaller segment of the group, continues to face tough market conditions.  

“The goard recognises that the group had a strong second half in the financial year ended March 31, 2008 which represents a challenging comparative but considers the group well placed to continue performing to market expectation. It remains mindful, however, of current consumer confidence as we head towards the Christmas period, our most significant trading phase,” added Mr Cowgill.

He said that Air Music and Media has started to reduce its share premium account to restore distributable reserves by the end of the current financial year which will allow it to pay dividends.

It said that further details of the capital reorganisation and future dividend policy would be announced soon.

Air Music & Media is listed on AIM and was founded in December 1995.

It is due to announce its half-year results on December 8.