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HMV struggle as they report annual loss

Struggling music retailer HMV has reported a 12.1% decline in sales compared with this time last year.

They have vowed to focus on their electronic division with a hope to returning to profitability after their technology sales have solidly increased in 2011/12.

A drop in sales has led to a loss of £16.2 million, although HMV remain confident that they can recover.

HMV are still searching for a buyer for their live music section, which runs festivals and venues across the country.

Simon Fox, Chief Executive, 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.”

Mr Fox announced his decision to leave the company this week, and will be replaced by Trevor Moore from September along with new Financial Director Ian Kenyon who will take the place of
David Woolfe.

This was posted in Bdaily's Members' News section by Miranda Dobson .