MBL pre-tax loss from continuing operations widens in H1

22nd Dec 2014 12:21

Entertainment product distributor MBL Group saw its pre-tax loss from continuing operation double in the first half of the year, on the back of rising costs and difficult trading conditions.The group, which also has a division selling mail order garden bird and wildlife products, reported a pre-tax loss from continuing operations of £378,000 in the six months to 30 September, up from a £144,000 loss in the corresponding period in 2013.Revenue rose to £5.9m from £5.6m, while administrative expenses rose to £1.5m from £1.3m due to the costs of board changes and strategic advice, while distribution costs increased to £314,000 from £172,000.The group said its entertainment division was the worst hit, with revenue declining 10% in the wake of adverse exchange rate conditions, though the arm's operating profit rose 39%.Meanwhile, the garden and leisure division reported a 66% increase in revenue and a 25% rise in operating profit."The board has been reviewing the future strategy for the group and continues to evaluate means to return value to shareholders," the group chairman Tony Johnson said."The home entertainment division continues to perform solidly and the board continually monitors the longer term outlook for this market."The board believes that the investments being made into the Garden and Leisure division, both in terms of growing the customer base and recent relocation of the operations, have placed the division in a solid position to deliver future profitability to the group."MBL shares were down 5% to 9.50p at 12:34 on Monday.