Home entertainment and gardening products retailer and wholesaler MBL Group says that its loss in the year to March 2012 will be greater than the £7.2m reported at the interim stage.
Rationalisation of the business has reduced the ongoing loss in the second half but there are additional costs of the winding down of operations and disposals. Executive director remuneration has been reduced by 53%.
MBL is transforming itself from a wholesaler to retailers into a business that retails directly with the consumer. MBL has paid £720,000 to Flying Brands for its Listen2, Garden Bird Supplies and Garden Centre Online. The first two are mainly direct mail businesses while Garden Centre Online is online and telephone-based. In 2010, the businesses made an operating profit of £600,000 but they made a small operating loss on revenues of £3.1m in the first half of 2011. They generated revenues of £5.65m in the whole of 2011.
MBL has enough cash for its immediate needs with no debt even though it is paying cash in advance for most of its supplies.
At 3.75p a share, down 0.5p, MBL is valued at £650,000.
The full year figures will be published later in August.
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