MBL Group says trading in line with expectations

17th Jun 2011 10:56

Struggling entertainment products distributor MBL Group said negotiations with Morrisons Supermarket regarding the contractual matters requiring resolution are continuing and added that its business is trading in line with its board's expectations.MBL, hit by volume and margin pressures, said significant progress has been made in reducing the level of exposure to Morrisons in terms of debtors and allocated stocks but said that the remaining residual asset "lock up" is still a subject of continuing dispute dialogue.MBL said the board is "disappointed that a conclusion has not yet been reached" and expects to provide a further update in August.Furthermore, MBL confirmed that it did not receive any buyout offer for the entire company and said the downsizing of operations will result in some exceptional costs being taken in the financial year to March 31.The share price hit a new 52-week low on the announcement, and at 12:14pm was trading at 8.15p, down 2.75p on the day.AR