StockMarketWire.com - Troubled UK distributor of home entertainment products [BOLD] MBL Group [LON:MUBL] saw a massive drop in year-on-year sales in the first half, reported a loss and failed to pay a dividend after its contract with Wm Morrison [LON:MRW] ended.

Sales decreased to £15.7m (2010: £71.1m) the company reported a loss before tax of £7.2m (2010: profit £0.7m). Loss per share for the period of 43.9p (2010: profit 2.9p).

Total current assets of £9.3m (2010: £33.9m). Settlement in principle agreed with Wm Morrisons plc regarding contract termination. Debt free status has been maintained. No dividend payment is proposed (2010: 7.5p per share)

Business downsizing is continuing with Global Media Vault Limited and MBL Guernsey PCC Limited sold to Sainsbury's Supermarkets plc for £1m.

Peter Cowgill, Chairman of MBL, commented: "The Group has experienced a challenging six months in which it has been managing the repercussions of the sudden loss of 79% of its business. During this period, a substantial downsizing has occurred and post the period end two subsidiaries, Global Media Vault and MBL Guernsey PCC, have been sold and the activities of one subsidiary, Outnow Home Entertainment, have been discontinued.

The Board is committed to stabilising the business following the damaging events of earlier this year and we shall provide an update on headline performance in late January 2012."




Story provided by StockMarketWire.com