HMV sees 25% profit rise

HMV revealed a 25% rise in annual profit on Tuesday and said current trading was in line with its expectations, despite the challenging economic outlook. Company management observed the company to be well ahead on its three year turnaround plan, even after one year. It pointed out that online sales were up and noted profit before tax and one-off items was £56.6 million ($112.9 million) in the year ended April 26.
The firm said in May that underlying profit would be towards the top end of analysts’ expectations, which at that point ranged from £48 million to £58 million.
HMV out-performed the Waterstone’s division, with like-for-like sales at the DVD and music retailer up 11.4% compared to a 3.3% rise at the bookstore chain.
The company also saw strong market share performance across all product categories in the year, with games and technology growing rapidly and now comprising 21% of all HMV UK & Ireland sales, up from 14% in 2007.
In a statement, chief executive Simon Fox said: “One year into our transformation plan, group profits are up by 25% and we are ahead of where we expected to be. We still have much to do, and whilst we are mindful of the challenging economic outlook, the current financial year has started in line with our expectations and I remain confident that we are building a better and stronger business that can prosper in a rapidly-changing market”.
The board also announced that non-executive chairman Carl Symon would be standing down in September after nearly three years.

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