A transformational year for EBTM, the music-inspired fashion retailer, saw it grow annual revenues fivefold thanks to its purchase of two clothing brands.

The ‘vertically integrated’ group lifted sales 401% to £6.8m in the year to April and turned 2007’s £470,000 loss into a profit of £1.02m before tax and exceptionals. This is principally down to the purchase of modish fashion brands Atticus and Lowlife, beloved by achingly trendy teens across the world.

The Lowlife brand was bought as part of a wholesale clothing business that now makes up 73% of group revenues and which grew 46% on a like-for-like basis. The online division, which now accounts for 27% of sales, grew by 37% year on year.

This all shows that the business, which appointed experienced new finance and operational directors, is moving in the right direction despite the depression gripping the wider retail sector. Online retail is on a continuing upward tear and the market is independently predicted to triple in size by 2012.

House broker Blue Oar agrees and sees revenue at EBTM growing to £9.8m this year, with profits rising to £1.8m and earnings coming in at 0.4p. At current levels, the shares offer plenty of long-term upside and could reward a speculation.

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