HMV eyes profits recovery
Friday 04 May 2012
Music and film retailer HMV offset anticipated annual losses of £16 million today by predicting a surprise return to profit in the following year.
The struggling retailer, which has around 250 stores in the UK, said "very weak" trading in January and a poor release schedule for CDs and DVDs had pushed it to a bigger than expected loss for the year just ended.
However it is expecting that the collapse of rival Game and HMV's closer relationship with key music and film suppliers will then help it back into the black.
The company is now looking for pre-tax profits of at least £10 million for the 2012/13 financial year, compared with City forecasts for a loss of around £5 million.
Chief executive Simon Fox said: "The last year has been a difficult and challenging one for HMV and this will be reflected in our annual results.
"However we are confident that the actions we have taken will enable us to significantly improve our profit and cash generation in the year ahead."
The group was recently thrown a lifeline when suppliers including Universal Music came to its rescue, signing improved terms that will ultimately help it shed around half of its £180 million debt pile over the next three years. It said today its year-end debt figure was expected to be around £168 million.
The group's recovery plans include a shift in focus to technology products, including by refitting stores with an extended gadget range.
It has sold bookseller Waterstones and is currently looking to offload HMV Live, which runs 13 venues and a number of festivals including Lovebox in London and Global Gathering near Stratford-upon-Avon.
HMV reported "gradual improvement" in recent trading but like-for-like sales were still 12.9% lower in the 17 weeks to April 28 and 11.7% lower across the whole financial year. Total annual sales for the group, including HMV Live, were off 18.3%.
- 1 Indonesia executions: Death row British grandmother Lindsay Sandiford will refuse to wear a blindfold when she faces firing squad
- 2 The man who filmed the Freddie Gray video has been arrested at gunpoint
- 3 How the language you speak changes your view of the world
- 4 The top 50 cities for young people to live in
- 5 Uploading pictures to find out how old you are gives Microsoft the right to post them wherever they want
General Election 2015: Fishing is on Nigel Farage's mind as he casts a line to the disaffected of Grimsby
Oxygen-starved 'dead zones' with no marine life up to 100-miles long discovered in the Atlantic Ocean
The man who filmed the Freddie Gray video has been arrested at gunpoint
Indonesia executions: Death row British grandmother Lindsay Sandiford will refuse to wear a blindfold when she faces firing squad
Russian warships accused of 'chasing away' Swedish vessel to prevent Baltic States from achieving energy independence
Over 50,000 families shipped out of London boroughs in the past three years due to welfare cuts and soaring rents
EU asylum policy is 'a direct threat to our civilisation', says Nigel Farage
The Rothschild Libel: Why has it taken 200 years for an anti-Semitic slur that emerged from the Battle of Waterloo to be dismissed?
General Election 2015: SNP and its activists 'openly racist' towards the English, Farage says
General Election 2015: UK will be 'run for the wealthy and powerful' if Tories retain power, Labour warns
Schools forced to act as 'miniature welfare states' with teachers buying underwear and even haircuts for poor pupils
iJobs Money & Business
£16000 - £18500 per annum: Recruitment Genius: This is an excellent opportunit...
£24000 - £28000 per annum: Recruitment Genius: A Senior SEO Executive is requi...
£16000 - £18000 per annum: Recruitment Genius: An Online customer Service Admi...
£18000 - £22000 per annum: Recruitment Genius: This global, industry leading, ...