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. <br /><br />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.<br /><br />Best Buy is set to storm its way into the UK market by opening five stores in the Spring. <br /><br />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. <br /><br />MBL has grown substantially in the last year following the demise of EUK and Woolworths.<br /><br />Broker Seymour Pierce yesterday said that the firm&rsquo;s shares remain cheap and issued a &ldquo;buy&rdquo; rating on the stock. <br /><br />Seymour Pierce says it expects half year&nbsp; pre-tax profits to increase to &pound;3m compared to &pound;2.2m the year before.