HMV's share price has plunged violently on the London Stock Exchange (LSE) today (December 13th), after the company released its disappointing interim results for the 26 weeks to the end of October 2012.
The entertainment retailer announced that total sales from continuing operations were down by 13.5 per cent to £288.6 million compared to the £333.7 million recorded last year, with like-for-like sales falling by 10.2 per cent.
HMV's underlying net debt is now £176.1 million, while in 2011 it was £163.7 million.
The business – which recruited a new chief executive officer and chief financial officer to turn its operations around in September 2012 – admitted a disappointing release schedule in summer of this year impacted on sales, while it cited current market trading conditions and uncertainty in its report.
Chief executive Trevor Moore said: "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."
At 10:20 GMT, HMV shares on the LSE nosedived by 39.1 per cent to 2.50p per unit.
Find spread betting strategies for the FTSE 100 at City Index.
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.