HMV has described the company’s full year financial results for the 52 weeks ended April 28th as “difficult”, as the retailer performed below its expectations.

Overall sales were up 3.8 per cent to £1894.5m, inclusive of a 3.5 per cent fall in like for like sales, while profits before tax and exceptional items dropped from 2006’s figure of £98.2m to £48.1m this year. Overall profits before tax plummeted to £21.6m from £80.2m on 2006. The Group also highlighted that a review of its operations in Japan had been completed, and could now lead to a sell-off.

However for the eight weeks ended June 23rd the retailer saw like for like sales up 3.8 per cent, including an 8.8 per cent increase in HMV and Ireland. Gross amrgin improvements were also reported to be in line with expectations.

“The tuenaround plan we announced ion March is progressing well and we are on track,” said a defiant Simon Fox, chief executive of HMV. “The benefits of our actions are beginning to come through and are reflected in the good start we have made to our new financial year.”