Blockbuster UK has reported its pre-tax profits lifted from £3m to £4.6m in the year to January 3, but the retailer still awaits the fate of its US parent Blockbuster Inc.
Operating profit almost doubled to £3.5m, while turnover fell from £293.4m to £262.8m.
In figures filed at Companies House, Blockbuster said that despite its parent applying for Chapter 11 bankruptcy, “the directors of the company expect its business in the UK to operate normally and consider that adequate financial resources are available to the company to enable it to continue as a going concern for the next 12 months”.
Blockbuster said it was able to improve profitability by maintaining a tight control on costs, closing stores, improving margins and increasing its sales growth in its rental business.
The retailer said it was “very satisfied with the outcome and looks forward to continued positive trading in the future”.
It added: “Trading so far in 2010 has been satisfactory, taking into account the effects of the World Cup and some periods of unseasonably warm and dry weather in the second quarter.”
Blockbuster said it expected full-year EBITDA to be “satisfactory”.
It has pointed out in the past that it is a separate legal entity from its parent, while acknowledging that as a result of the Chapter 11 process Blockbuster UK could be “subject to changes in ownership or financing”.