HMV's profits plunge

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HMV swung to a loss of 121.7m from a profit of 49.2m the year before.

Total Group sales fell by 7.4 per cent, while like-for-like sales fell 11 per cent.

Pre-tax profits sit at 18.8m. HMV's total debt now sits at 170.7m, a significant increase from the 67.6m the year before

The 'underperforming' video games market was listed as a key reason for the fall, with HMV suffering from price competition on the High Street and from supermarkets.

It all makes for bleak reading, but HMV has bought itself some significant time by selling off its loss-making Waterstones and HMV Canada.

It has also secured a 220m bank refinancing that will last to September 2013,

Expect HMV to transform in that time. There will be a number of store closures and cost cutting, while around a quarter of in-store space will be given over to technology.

The firm will also invest in their high-growth markets of live music, digital downloads and ticketing.

"We have taken decisive action to restructure and successfully refinance the Group," said CEO Simon Fox.

"HMV remains a world-class entertainment brand, and we now have a very clear focus and strategy to drive cash generation and cost reduction, reinvigorate the customer offer and further diversify the Group into the growth areas of live, ticketing and digital."