HMV posts annual loss as sales decline
Troubled music, films and games retailer HMV has posted an annual loss due to falling sales and restructuring costs.
It posted a pre-tax loss of £38.6m in the 12 months ending in April, compared with a flat figure a year earlier.
HMV's like-for-like sales were down 12.1%, as it continues to be hit by increased competition, particularly from music downloads.
Its restructuring costs totalled £11.1m, which included job cuts.
The company, which closed a head office, also restructured its European operation.'Challenging'
The release of its annual results came a week after HMV announced that its chief executive Simon Fox will be stepping down in September after six years in the role.
He is being replaced by Trevor Moore, a former boss of camera retailer Jessops.
During the financial year HMV closed stores and sold its Waterstones book chain, as well as the entertainment venue Hammersmith Apollo.
It is also selling HMV Live, which owns 13 live music venues and operates five music festivals in the UK.
HMV said it expects to return to profitability in the next financial year.
Mr Fox said: "The last year has been a difficult and challenging one for HMV... However, we are confident that the actions we have taken will enable us to significantly improve cash generation and make profits of at least £10m in the year ahead."