Deathwatch: HMV announce losses of almost £40m - company now worth just £16m
If you had a bet at some point in the past over who would die first out of Kim Jong-Il and HMV, then the Korean leader has just paid out. But it’s a close-run thing. That’s because HMV’s latest financial results are fairly diabolical, with an underlying pre-tax loss of £36.4m in the 26 weeks to October 29, versus a loss of £27.4m in the same period last year.
The beleaguered entertainment retailer says that it will continue to trade for the foreseeable future, but that, “the economic environment and trading circumstances create material uncertainties which may cast significant doubt on the group's ability to continue as a going concern in the future.” One thing’s for sure – those kinds of losses aren’t really sustainable.
HMV recently shifted their focus, concentrating more on the sales of technology, gagdets and accessories, but it’s hard to see how that is going to prompt the kind of major turnaround that is almost certainly required.
Shares in HMV, which have lost 88% of their value over the last year, closed at 3.87p on Friday, leaving the business valued at just £16.4m – although why anyone would want to take a punt, even at that price, is baffling.