RNS Number : 8803D MBL Group PLC 10 December 2009 ? 10 DECEMBER 2009 MBL GROUP PLC ("MBL" or "THE GROUP") Unaudited Interim Financial Statements for the Six Months Ended 30 September 2009 The Board of MBL Group plc, the UK distributor of home entertainment products, is pleased to announce its interim results for the six months ended 30 September 2009. Highlights
Post Balance Sheet activities
Peter Cowgill, Chairman of MBL, commented: "MBL continues to experience significant growth and I'm delighted to report a 39% increase in profit before tax. In June we signed a major contract with Morrisons PLC and we have recently announced a significant contract with Best Buy to supply its UK stores. "Further to this, last month we completed the acquisition of Global Media Vault, a Digital Media distribution business. This is a major step towards being able to offer our customers a one-stop entertainment distribution solution." --ENDS-- Enquiries: MBL GROUP PLC Tel: 0161 767 1620 Peter Cowgill (Chairman)
BISHOPSGATE COMMUNICATIONS LTD Tel: 020 7562 3350 Maxine Barnes/Will Tindall/Siobhra Murphy SEYMOUR PIERCE LTD Tel: 020 7107 8032 Mark Percy
Chairman's Statement I am pleased to announce a 39% increase in profit before tax for the six months ended 30 September 2009. During this period, revenue increased to £78.2m, representing a £43.3m increase over the same period last year with the Group having successfully integrated new business that had been acquired in the second half of the previous financial year. Operating profit increased by £1.0m to £3.2m and earnings per share has increased to 13.2 pence from 8.9 pence. Group Performance A summary of the Group performance is shown in the table below:
Distribution Sales at Music Box Leisure ("MBL") increased significantly following the collapse of our key competitor in late November 2008. The vast majority of this increase has been sales of new release titles in all entertainment formats, which are sold at a lower margin than MBL's traditional catalogue titles. As a consequence gross profit margins fell by 5.4% to 10.5%, compared to the period to 30 September 2008. This trend is not expected to decline any further, unless there is another significant change to the composition of sales or industry conditions. During the period, MBL signed a three year contact with Morrisons PLC and since September has announced a contract with Best Buy for supply commencing in 2010. The significant increase in volumes has been supported by investment in the Group's infrastructure. Administration costs have risen due to the necessary increases in employees at all levels and the strengthening of IT systems and the distribution facilities. Wholesale ESD Wholesale ("ESD") experienced a marginal increase in sales, as the decline in independent retailers witnessed over recent years appeared to stabilise. Windsong International ("WI") commenced trading in the period and contributed sales of £1.0m which were predominantly exports. Costs at ESD were well controlled. WI incurred expenses during its initial set up period which resulted in the division making an overall operating loss of £0.2m. Global Media Vault Since the period end, the Group has announced the acquisition of Global Media Vault ("GMV") a digital media distribution business which was established in January 2009. This acquisition places the Group in a position to include the distribution of digital entertainment content to its customer base through website and potentially in-store platforms. GMV is investing heavily in the development of its product offering and is expected to contribute towards Group profitability from the next financial year onwards. Funding position The Group continued to manage cash effectively and at 30 September 2009 had a positive balance of £3.2m. Working capital has increased in line with expectations and the Group continues to operate comfortably through the use of its cash deposits and a sales invoice banking facility. MBL has experienced some benefit from increases in limits from suppliers that have received increases from their credit insurers, but continues to have to pay in advance of terms when necessary to maintain continuity of supply. Despite this, MBL did not have any requirement to revise its sales finance facility during the period. Dividends The Group announced at the year end that it intends to pay a dividend of 6.0 pence to shareholders and this will be paid on 22 January 2010. Thereafter, a progressive dividend policy is anticipated that will pay an annual dividend to shareholders. Future outlook The performance of the Group for the first half of the financial year has been encouraging given the increase in volumes and investment that has been made into improving the infrastructure. The Board's strategy is to continue to grow the business and look for new business opportunities to strengthen the Group's future prospects. The Group is currently in the most important trading period of the year. I look forward to issuing a trading update on the headline performance to 31 December at the end of January 2010. I would like to take this opportunity to thank all our employees for their hard work. Peter Cowgill Chairman 10 December 2009 Condensed Consolidated Statement of Comprehensive Income For the period ended 30 September 2009
Condensed Consolidated Statement of Financial Position
Unaudited Condensed Consolidated Statement of Changes in Equity For the period ended 30 September 2009
Condensed Consolidated Statement of Cash Flows For the period ended 30 September
Notes 1.Reporting entity MBL Group plc is a company domiciled in the United Kingdom. The condensed consolidated financial statements of the Company as at and for the six months ended 30 September 2009 comprise of the Company and its subsidiaries. The consolidated financial statements of the Group as at and for the year ended 31 March 2009 are available upon request from the Company's registered office at MBL Group plc, Unit 9 Enterprise Court, Lancashire Enterprise Business Park, Centurion Way, Leyland, Lancashire, PR26 6TZ. 2.Statement of compliance These interim results have been prepared in accordance with International Financial Reporting Standards ("IFRS") as adopted by the European Union (with the exception of IAS 34, Interim Financial Reporting) and International Financial Reporting Interpretations Committee ("IFRIC") interpretations and with those parts of the Companies Act 1985 applicable to companies reporting under IFRS. The comparative figures for the year ended 31 March 2009 are not the Company's statutory accounts for that financial year. Those accounts have been reported on by the Company's auditors and delivered to the Registrar of Companies. The report of the auditors was (i) unqualified, (ii) did not include a reference to any matters to which the auditors drew attention by way of emphasis without qualifying their report, and (iii) did not contain a statement under section 237(2) or (3) of the Companies Act 1985. The Group's policy is to maintain the ability to continue as a going concern, in order to provide returns to the shareholder and benefits to other stakeholders. Accordingly the going concern basis has been adopted in preparing these interim results. 3.Significant accounting policies As required by the Disclosure and Transparency Rules of the Financial Services Authority, the condensed set of financial statements has been prepared by the Group by applying the same accounting policies and significant judgements as were applied by the Group in its published consolidated financial statements as at and for the year ended 31 March 2009. In addition, the Group has applied IAS 1 - Presentation of Financial Statements (Revised) for the first time, with a resulting impact on the presentation of these financial statements, but no change in the balances reported. 4.Income tax The income tax charge has been estimated by the Group based on adjustments to tax payable in respect of previous years and the tax rate for the year ending 31 March 2010. 5.Earnings per share The calculation of the basic earnings per share is based on the profit after taxation divided by the weighted average number of shares in issue, being 17,162,735 (period ended 30 September 2008: 17,162,735; year ended 31 March 2009: 17,162,735). The diluted earnings per share takes the weighted average number of ordinary shares in issue during the period and adjusts this for dilutive share options existing at the period end. The diluted weighted average number of share in the period ended 30 September 2009 was 17,185,345 (period ended 30 September 2008: 17,162,735; year ended 31 March 2009: 17,162,735). This information is provided by RNS The company news service from the London Stock Exchange | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||