MBL announces a tie-up with US giant Best Buy
MBL shares rocketed yesterday after the UK distributor of home entertainment products said it had signed a contract with US retail giant Best Buy for the exclusive supply of its DVDs, BluRay disks and CDs.
MBL shares closed up 9.62 per cent at 171p. The contract between MBLand Best Buy is for an initial period of 12 months with the potential to extend for a further year.
Best Buy is set to storm its way into the UK market by opening five stores in the Spring.
In an aggressive expansion plan, Best Buy plans to create 8,000 jobs and open around 100 stores over the next five years through its partnership with Carphone Warehouse.
MBL has grown substantially in the last year following the demise of EUK and Woolworths.
Broker Seymour Pierce yesterday said that the firm’s shares remain cheap and issued a “buy” rating on the stock.
Seymour Pierce says it expects half year pre-tax profits to increase to £3m compared to £2.2m the year before.