Sales up 10.4% while losses drop by £2.6m
Online DVD, games and music retailer Choices UK revealed sales rose 10.4 per cent to£86.1 million, compared to£78 million last year, for the 28 weeks to February 10.

Also, losses were drastically reduced to£265,000, compared to£2.9 million last year.

The retailer has released interims for the 36-week period, due to moving its year end (from May to July).

However, the improved performance in the 28-week period was insufficient to compensate for the loss suffered in the first eight weeks of the 36-week period, which included the negative impact of the World Cup. So losses were£2.8 million, in the 36 weeks to February 10.

Overall turnover increased 7.9 per cent to£102.9 million in the 36-week period, compared to£95.4 million in 2006, against a backdrop of price deflation in DVDs and a further decline in rental.

The AIM-listed retailer's Direct to Home business performed strongly during the period, with a 129 per cent rise in sales to£37.4 million, compared to£16.3 million last year.

The retailer has also disposed of 31 loss-making and non-trading stores and revamped its product range during the period.

The company said: 'Choices UK is well placed to complete its recovery plan and, with the financial benefits of reduced costs and stabilised margins, should achieve positive cash flow for the final 24 weeks of the financial period.'