Interim Financial Results for the 26 weeks ended 27 October 2012

13 December 2012

HMV Group plc, the UK's leading High Street entertainment retailer, today announces its interim financial results for the 26 weeks ended 27 October 2012.

Financial Summary for the 26 weeks
  • Total sales from continuing operations £288.6m (2011: £333.7m), down 13.5%.  Like for like sales (from continuing operations) down 10.2% (2011: down 11.9%)
  • Operating loss before exceptional items from continuing operations of £24.1m (2011: loss of £33.2m)
  • Total Group loss after tax and exceptional items reduced to £36.1m (2011: loss of £50.1m)
  • Adjusted EPS from continuing operations1 improved to loss of 8.1p (2011: loss of 9.1p). Basic EPS loss from continuing operations of 8.8p (2011: loss of 11.3p)
  • Net cash outflows from operating activities £33.5m  (2011: outflow of £28.4m)
  • Underlying net debt2 of £176.1m (2011: £163.7m)
Business Update
  • New CEO and CFO recruited in September 2012
  • Growing market share in all formats with suppliers continuing to provide strong support
  • Disappointing release schedule in summer 2012 impacted sales but LFL trend improved in the second quarter
  • Current market trading conditions result in material uncertainties facing the business.  Probable covenant breach at the end of January 2013
  • Constructive discussions with the Group's banks including keeping them fully informed in relation to current trading

Commenting, Chief Executive Trevor Moore said:
"HMV has had a difficult first half.  However, the business has started to deliver a number of new initiatives which will help to maximise the seasonal sales opportunity and provide a platform for growth in 2013.

Additionally, as we trade through this period we will continue to develop further initiatives with our suppliers and I will provide updates at the appropriate time."

Enquiries
HMV Group Trevor Moore, Ian Kenyon 020 7404 5959 *
Brunswick Helen Smith, Nick Cosgrove 020 7404 5959

  • All enquiries on 13 December should be directed via Brunswick.

Notes for editors

HMV Group is one of the world's leading High Street retailers of music, video and electronic games in terms of total sales. As of 27 October 2012, the HMV Retail division operated 238 HMV and 9 Fopp stores selling music, video and games in four countries. All of the Group's retail operations, both in the United Kingdom and internationally, are wholly owned.

Note
1 Adjusted EPS - continuing operations before exceptional items
2 Underlying net debt - cash and short term deposits less external borrowings, before unamortised deferred financing fees

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