Lancashire wholesalers slips into the red
Preston's MBL Group recently posted post-tax losses of £158,000 for the year ending 31 March 2017, compared to profits of £75,000 a year earlier. The reversal in fortunes was blamed on exceptional costs during the period which amounted to around £693,000 despite both trading divisions achieving profitability.
In 2016/17, revenues increased by 8 per cent to £16m, but a strategic review toward the end of 2016 concluded that it may be in the best interests of the company for a third party to develop their trading businesses and take them forward.
Consequently, the MBL board has begun conducting a formal sales process regarding each of the company's trading businesses.
Tim Jackson-Smith, chairman of MBL, said: "The financial year ending 31 March 2017 saw the group undergoing many changes including the completion of a strategic review and the commencement of a formal sales process.
"However, despite the many challenges and distractions that these changes presented I am pleased to say that both trading divisions performed well and were each profitable and cash generative. There were a number of one-off exceptional costs that the group incurred in connection with the above changes that resulted in a loss at group level.
"On behalf of the board, I would like to thank everyone across the group for their hard work and dedication."
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