MBL seeks to flush out potential buyers

MBL GROUP, the Leyland-based distributor of home entertainment products, has confirmed that it  has appointed advisors to complete a strategic review of the business which could lead to a sale of the firm.

The company’s share price spiked from 122p when the markets opened on Monday to almost 157p on yesterday, before dropping back to 152p, which gives it a market value of just below £26m.

In the year to March 31, the company increased profits to £9.88m on revenues up 35.7% to £194.87m.

The company issued a statement yesterday stating that the review, which is being conducted by KPMG’s corporate finance arm, would “consider how best take the business forward”.

“The strategic review is at a very early stage and may result in an offer being made for the group as one of the possible outcomes, although the board wishes to stress that there can be no certainty that any offer will be made ,” it said.

“The board intends to update shareholders as soon as it is appropriate to do so.”