Entertainment retailer HMV has reported a pre-tax loss of £16.2 million in its full year results released today.
After tax and exceptional items, the group made a loss of £80.4 million in the 52 weeks ending April 28th 2012 while total sales fell 19.7 per cent to £923.3 million. Like-for-like sales fell 12.1 per cent over the period as the retailer struggled within a competitive market.
Closing approximately 30 stores last year as it shifted its focus to its online offering as well as consumer technologies, the group stated that the strong increase in technology sales continued over the year.
HMV Retail‘s gross margin rose by 90 basis point and these positive figures are likely to have raised spirits at the company during a period of significant change.
Last week, the music and games specialist announced that CEO Simon Fox, who had been with the business for six years, is to stand down next month and be replaced by ex-Jessops boss Trevor Moore.
Following news of Fox‘s departure,Finance Director David Wolffe announced his resignation and he is to be succeeded by Best Buy Europe‘s Chief Financial Officer Ian Kenyon next month .
As boardroom changes are put in place, the retailer also announced that the £32 million sale of London music venue Hammersmith Apollo has been officially signed off, strengthening its financial position.
Looking ahead, the group said that changes to its relationship with suppliers and the ongoing improvement in technology sales should see profit before tax reach at least £10 million over the coming year.
Commenting on the results, Fox said: “The last year has been a difficult and challenging one for HMV and, as expected, this is reflected in our annual results.
“However, we are confident that the actions we have taken will enable us to significantly improve cash generation and make profits of at least £10 million in the year ahead.
“Although we have clearly been through a turbulent period, our financial position is now stable thanks to the support of our suppliers, banks and colleagues, and I am confident, as I hand over the reins to Trevor Moore, that HMV has a secure future under his leadership.”
