HMV issues third profit warning
HMV today issued its third profit warning of the year. The group says it now expects full-year pre-tax profits to be around Â£30 million, with four weeks of its financial year to go.
The group had already warned in its 1 March 2011 trading statement that profit would be “moderately below market expectations”. Today’s statement says that trading conditions have “remained difficult”.
The group also reported that its lenders have agreed to move the measurement period for all relevant financial covenant tests from the 12 months ending 30 April 2011 to the 12 months ending 2 July 2011. It said that the lenders continued to be supportive and that it was “maintaining a regular and constructive dialogue” with them.
In March, HMV said that it was exploring strategic options for HMV Canada and its bookselling business Waterstone's.
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