There are signs of hope for struggling high street entertainment chain HMV as it looks to capitalise on the demise of its rival Game.
Its latest trading update reveals HMV expects to make a loss of around £16m in the full year to April 28, with like-for-like sales down 12.4% in the last 17 weeks of the reporting period.
That's not good, but with Game having collapsed earlier this year and a "changed" relationship with key music and film suppliers HMV predicts profits before tax for the next full year of £10m against an analyst consensus of a loss of £5m.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
This prediction had boosted the share price 10.8% by 11:16.
The firm's Chief Executive, Simon Fox, said: "The last year has been a difficult and challenging one for HMV and this will be reflected in our annual results. However we are confident that the actions we have taken will enable us to significantly improve our profit and cash generation in the year ahead."
BS
-
What happens if you can’t pay your tax bill, and what is "Time to Pay"?Millions are due to file their tax return this Friday as the self-assessment deadline closes. Though the nightmare is not over until you pay the taxman what you owe - or face a penalty. But what happens if you can't afford to pay HMRC your tax bill, and what is "Time to Pay"?
-
What does Rachel Reeves’s plan for growth mean for UK investors?Rachel Reeves says she is going “further and faster” to kickstart the UK economy, but investors are unlikely to be persuaded
