StockMarketWire.com - Sales at home entertainment distributor MBL Group have risen by more than 85% following the demise of Woolworths and withdrawal of its distribution arm Entertainment UK in the run-up to Christmas.

MBL's total sales for the December quarter were £65.2m, compared with £35.2m in the previous year.

Most of this was in Distribution sales, up 92.8% at £62.1m. Wholesale sales rose 0.3% to £3.1m.

MBL says gross margin has been materially reduced due to a change in sales product mix to take advantage of market opportunities.

'There has been a major change to the market in which the group operates, most significantly the departure of Entertainment UK during such a critical trading period,' says MBL.

'Suppliers, customers and competitors to Entertainment UK are evaluating the changes and prospects that this may create.'

However, while this provides confidence for full year outcome, the group says it does expect such trading levels to continue as market conditions stabilise.