HMV has issued results for the 16 months to the end of May 2020, along with guidance about the impact of Covid-19 on the business.
The entertainment chain has been forced to close again until at least December 2 in England under the government’s latest lockdown.
According to documents lodged at Companies House, HMV made a pre-tax loss of £198,000 for the 16-month period. HMV revenues were £187.9 million, while the gross profit reached £84.1m. EBITDA was £457,948.
The results include the three-month period when HMV was unable to open during the first Covid lockdown from March. The company directors have insisted that they can manage the impact of the pandemic.
“The initial impact of Covid-19 resulted in decreased sales and activity due to stores being closed from March 23 to June 15,” stated the strategic report. “The directors have considered potential scenarios of the Covid-19 impact based on current trends and we are confident that we can manage through relevant future disruption.”
We are confident that we can manage through future disruption
There’s no year-on-year comparison in the results for HMV, which was acquired by Doug Putman in February 2019. The financial report covers the 16 months of trading following the takeover.
Putman soon moved to close unprofitable stores and renegotiate rents to help other branches to remain open.
According to the financial report, there are 108 stores along with the online operation.
Amid the decline in physical retail, HMV said it is responding to the trend with initiatives in stores and online. In the past year, it has expanded the vinyl offering.
“Footfall decline risk is being managed by offering products with sufficient exclusivity or collectability that customers will make specific trips to the HMV stores to shop,” stated the report. “It is also being managed via investment in our e-commerce platform.”
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