28th Aug 2014 08:47
LONDON (Alliance News) - MBL Group PLC saw its shares rise early Thursday after it reported a 10% increase in revenue from its remaining businesses in its last financial year, while investments it made in its garden and leisure operations meant profit was flat.
It added that sales in both its remaining businesses are satisfactory and in line with its own expectations so far in the current financial year.
The company is now focused on its business-to-business home entertainment operation, and its garden and leisure division which includes the Garden Bird Supplies and Garden Centre Online brands it bought in May 2012. It closed its consumer home entertainment business after failing to make it profitable.
It reported a pretax loss of GBP0.8 million for the continuing operations in the year to March 31, flat on the loss it made a year earlier, as the investments it made into the garden and leisure business and a lower margin in the remaining home entertainment business offset a rise in revenue to GBP12.5 million, from GBP11.3 million.
"Sales within both the home entertainment and garden & leisure divisions grew during the year with significant investments made into developing the brands acquired in the previous year. These investments have, in the short term, affected the cost base of the group which reports a loss for the period. We do however believe that the group now operates diverse operations and is well positioned to start to deliver improved returns," it said in a statement.
Including the now discontinued operations, MBL's loss narrowed to GBP1.2 million, from a GBP1.5 million loss a year earlier, even though revenue fell to GBP12.6 million, from GBP15.8 million. The loss from the discontinued operations was significantly lower at GBP466 million.
Its cash balance at the end of the last financial year stood at GBP2.7 million, down from GBP3.1 million a year earlier, and it remains debt free.
"The group continues to experience a lack of available supplier credit within the Home Entertainment division but is in a position to fund its operations for the foreseeable future," it said.
MBL shares were up 8.3% at 7.85 pence Thursday morning, one of the biggest gains on the AIM All-Share index.
By Steve McGrath; [email protected]; @SteveMcGrath1
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