STRUGGLING BRITISH music, books and games retailer HMV issued its third profit warning in three months amid tough trading conditions in its markets.
The 90-year-old company, which trades from about 700 stores in seven countries, said it now expected a year to end-April profit before tax and exceptional items of about £30 million.
Last month it had forecast a profit of “moderately below £45 million”.
That alert had followed one in January.
“Since the group’s last update on March 1st, 2011, trading conditions have remained difficult,” HMV said.
It said its lenders had agreed to move the measurement period for all relevant financial covenant tests from the 12 months ending April 30th, 2011, to the 12 months ending July 2nd, 2011.
HMV had previously warned it did not expect to meet the terms of its bank lending rules if they were tested in April.
In January, HMV Group, the company that owns both HMV and bookstore chain Waterstone’s, announced plans to close 40 HMV stores in Britain and Ireland and 20 Waterstone’s stores.– (Reuters)
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