HMV has posted significant losses for the year amid a challenging entertainment market.
The music and digitial entertainment retailer recorded a turnover of £325 million in the year up to January 2, down from £366 million in the previous year, according to the Guardian.
Filed at Companies House, HMV‘s accounts show a pre-tax loss of £8.8 million after expenses, including a significant £10.3 million paid to its sister companies.
Operating profits were down from 2015‘s £15.2 million to £11.7million. The most significant expense was a loan repayment of £7 million to Goodmans Capital Investments, including a £6 million loan and £1 million interest.
Kantar Worldpanel shows that the physical entertainment market has continued to decline. Last year it dropped by 8.3 per cent to £2.4 billion and the most recent figures show a similar trend this year dropping 8.1 per cent in the 12 weeks to July 3.
In the face decline in both profits and its key market, HMV remain optimistic about its future.
Chair of HMV Paul McGowan said that the figures have been encouraging since Hilco‘s acquisitions of the retailer in 2013 following its decent into administration.
“We are very pleased to be approaching our fourth anniversary since we acquired HMV and these encouraging results mirror the exciting year we have witnessed,” McGowan said.
Its share of the physical entertainment market rose by 2.3 per cent to 16.3 per cent in the three months to July 3. McGowan said that sales had during the period had been in line with budget.
The retailer has opted to provide less shelf space for the games market this Christmas period amid continuing profit warnings.