Business & Finance

HMV warns on profit again

LONDON ? : Struggling British music, books and games retailer has issued its third profit warning in three months amid t

Published April 5, 2011 Updated April 5, 2011 07:01am

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By Muhammad Iqbal

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The 90-year-old company, which trades from about 700 stores in seven countries, said on Tuesday it now expected a year to end-April profit before tax and exceptional items of around 30 million pounds ($48.49 million).

Just last month it had forecast a profit of "moderately below 45 million pounds".

That alert had followed one in January.

"Since the group's last update on March 1 2011 trading conditions have remained difficult," HMV said.

But it added that its bank lenders "continue to be supportive."

It said its lenders had agreed to move the measurement period for all relevant financial covenant tests from the 12 months ending April 30 2011 to the 12 months ending July 2 2011.

HMV had previously warned it did not expect to meet the terms of its bank lending rules if they were tested in April.

Shares in HMV closed Monday at 15.25 pence, valuing the business at 64.6 million pounds.

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