MUBL.L Regulatory News (MUBL)

22 December 2015

MBL GROUP PLC

(AIM: MUBL)

("MBL" or "the Group")

Unaudited Interim Results for the Six Months Ended 30 September 2015

The Board of MBL Group plc announces its interim results for the six months ended 30 September 2015.

Key points:

· Group revenue from continuing operations up 14% to £6.7 million (2014: £6.0 million (including discontinued operations))

· Group loss before tax £0.04 million (2014: loss £0.51 million (including discontinued operations))

· Group loss per share improved to 0.2p (2014: loss 3.0p)

· Net cash of £1.8 million (2014: £1.7 million) and the Group remains debt free

· No dividend is proposed.

Tony Johnson, Chairman of MBL, commented:

"I am pleased to report that during the period the Group achieved a 14% growth in sales, driven by a good performance in both the Home Entertainment and Garden & Home divisions."

--ENDS--

For further information please contact:

MBL Group plc Tel: 01772 440440

Lisa Clarke, acting CEO and Finance Director

SPARK Advisory Partners Limited Tel: 0203 368 3555

Sean Wyndham-Quin

Mark Brady

SI Capital Limited Tel: 01483 413500

Nick Emerson

Andy Thacker

CHAIRMAN'S STATEMENT

I am pleased to report that during the period the Group achieved a 14% growth in sales, driven by a good performance in both the Home Entertainment and Garden & Home divisions.

For the purposes of these statements, the operations of Garden Centre Online Limited have been classified as discontinued in the prior year comparatives. There were no discontinued operations in the current period.

Operational Review

Home Entertainment

Our Home Entertainment division experienced a satisfactory performance with revenues of £3.9 million (2014: £4.0 million). Gross profit margins were comparable to the same period last year at 14.7%. A reduction in overhead costs led to improved profitability of £70,000 (2014: £57,000).

Garden & Home

Our Garden & Home division specialises in the mail order of garden bird food, aquatics supplies and associated wildlife products.

Sales during the period increased by 49% to £2.7 million (2014: £1.8 million) which includes sales of £307,000 from the aquatics brand acquired in September 2014. Underlying sales increased by 32% to £2.4 million driven by the performance of garden bird products. The UK market for bird food remains highly competitive and the sales performance has been delivered through in-house expertise in online marketing.

Financial Review

The Financial Statements have been prepared to separately present the financial performance of the Group's continuing operations and discontinued operations in the prior year comparatives. The Segmental Analysis in the Notes to the Financial Statements presents the Group's consolidated revenue streams.

Overall, Group revenue for the year increased by 14% to £6.7 million (2014: £6.0 million). Prior year revenue from our continuing operations was £5.9 million. Group gross margins improved to 26% (2014: 25%) as a result of improved buying terms in both divisions.

The Group loss for the year before taxation was £0.04 million (2014: £0.51 million).

The Group is a relatively small business and as such it is possible for investment in future performance or operating challenges to have a disproportionate effect on our short term financial performance. We are also sensitive to the costs of maintaining an AIM listing and that these costs have a sizeable impact on the costs of administering the Group.

Cash flow, working capital and borrowing facilities

The Group ended the year with cash balances of £1.8 million (2014: £1.7 million). The net cash inflow from operating activities was £0.1 million (2014: outflow £0.7 million). The Group remains debt free.

Dividends

The Board is not recommending the payment of a dividend.

Capital Reduction

Post the balance sheet date the Group has completed the capital reduction announced in August 2015.

Board Update

Further to our announcement on 30 March 2015, there is no change to what was previously announced regarding Trevor Allan. The Board will update shareholders as appropriate.

Current Outlook

The second half of the financial year has started satisfactorily with sales in both divisions in line with management expectations.

D A Johnson

Non-Executive Chairman

22 December 2015

Condensed Consolidated Statement of Total Comprehensive Income

For the period ended 30 September 2015

Condensed Consolidated Statement of Financial Position

As at 30 September 2015

Unaudited Condensed Consolidated Statement of Changes in Equity

For the period ended 30 September 2015

Consolidated Statement of Cash Flows

For the period ended 30 September 2015

Notes

1. Basis of preparation

MBL Group Plc (the 'Company') is a company incorporated and domiciled in the United Kingdom. The half-year financial report for the 6 month period to 30 September 2015 represents that of the Company and its subsidiaries (together referred to as the 'Group').

This half-year financial report is an interim management report as required by Rule 18 of the AIM Rules for Companies and was authorised for issue by the Board of Directors on 22 December 2015.

The half-year financial report is prepared in accordance with the EU endorsed standard IAS 34 'Interim Financial Reporting'. The comparative figures for the year ended 31 March 2014 are not the Group's statutory accounts for that financial year. Those accounts have been reported on by the Group's Auditor and delivered to the Registrar of Companies. The Report of the Auditor was (i) unqualified, (ii) did not include a reference to any matters to which the Auditor drew attention by way of emphasis without qualifying their report, and (iii) did not contain a statement under section 498 of the Companies Act 2006.

The information contained in the half-year financial report for the 6 month period to 30 September 2015 and 30 September 2014 is unaudited and should be read in conjunction with the annual financial statements for the year ended 31 March 2015, which have been prepared in accordance with the IFRS adopted by the European Union.

As required by AIM Rule 18, the half-year financial report has been prepared and presented in a form consistent with that which will be adopted in the preparation of the Company's annual report and accounts for the year ended 31 March 2016.

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.

The consolidated financial statements of the Group for the year ended 31 March 2015 are available upon request from the Company's registered office at MBL Group plc, Unit 1 Millennium City Park, Millennium Road, Preston, Lancashire, PR2 5BL.

2. Going concern

The financial report has been prepared on a going concern basis, which the Directors believe to be appropriate for the following reasons.

The Directors have prepared cash flow forecasts to 31 March 2017 taking account of reasonable possible changes in trading performance. These forecasts show the Group to be cash positive throughout the next 15 months and make a number of assumptions around revenue and profitability of the remaining business activity.

These forecasts demonstrate the Group has appropriate funds which the directors believe are sufficient for the Group to continue to trade for at least the next 12 month period. In addition the Group continues to reflect an overall net assets position and is debt free.

The Group had a cash balance of £1.8m as at 30 September 2015 and currently does not have a bank overdraft or loan facilities.

The directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis in preparing the financial report.

3. Unaudited segmental analysis

The Group comprises the following main business segments:

Home Entertainment The sale of home entertainment products predominantly to the export market.

Garden & Home The sale of garden bird, aquatics, wildlife and pet related products direct to consumer via mail order and online channels.

Other A combination of revenue streams including the license of film and music rights for manufacture, sale and download.

Discontinued The retail of garden leisure products to the end consumer via the internet.

Consolidated statement of comprehensive income for period ended 30 September 2015:

Consolidated statement of comprehensive income for period ended 30 September 2014:

Consolidated statement of comprehensive income for period ended 31 March 2015:

4. Taxation

The income tax charge has been estimated by the Group based on adjustments to tax payable in respect of previous years and the level of losses incurred in the period ending 30 September 2015. 

5. Earnings per share

The calculation of the basic earnings per share is based on the loss after taxation divided by the weighted average number of shares in issue, being 17,296,068 (2014: 17,296,068; year ended 31 March 2015: 17,296,068).

6. Property, plant and equipment

During the period, the Group acquired assets with a cost of £104k (2014: £68k; year ended 31 March 2015: £88k).

7. Provisions

8. Discontinued operations