Revenues at Because Music in the UK are down 20.9% to £3.6 million for the year ending December 31, 2017.
Operating profit fell from £233,217 to £110,170. After tax, the company recorded a loss of £9,644 compared to a profit of £308,990 in the prior year.
The figures do not include revenues from Because's acquisition of the old London Records, which is listed as a separate company, London Music Stream Limited. It has yet to file its accounts for the time period.
While sales to the rest of Europe remained largely stable, the UK revenues dropped from £4.2m to £3.37m. Sales to the rest of the world fell from £208,478 to £89,409. Cost of sales fell from £3.3m to £2.7m.
Because Music's 2017 results may be a reflection of the breakout success of Christine & The Queens in 2016, which is likely to have made an impact on the year-on-year comparison. She is returning with a new album this year.
The label has undergone major changes in the past year with the departure of A&R exec Jane Third, who's been instrumental in its UK success, as well as that acquisition of much of the London Records catalogue. As exclusively revealed in Music Week, the label has appointed Nick Huggett as COO as part of a revamped team.
Founder and Emmanuel De Buretel struck a new distribution deal with Caroline late last year.
The French-owned label will likely be looking at the potential impact of Brexit as indie giant Beggars Group issued its own warning about the UK's exit from the EU next year.
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