4th May 2005 07:00
HMV Group PLC04 May 2005 Pre-close statement and trading update HMV Group plc will today hold a pre-close conference call for analysts andinvestors in respect of the year ended 30 April 2005. Management is confident that Group profits for the full year will be in linewith market expectations. Total Group sales for the period, excluding thebenefit of the 53rd week's trading, increased by 4.7% at constant exchangerates, including 1.1% like for like. The Group continues to be cash generativeand, during the period, commenced a programme of on-market share buy-backs. Following the Group's strong performance over the important five-week Christmasperiod, trading conditions during weeks 38-52 were more difficult. For theGroup, total sales at constant rates during this period increased by 1.2%,including like for like sales down 2.2%. The UK consumer environment has beenweak during this period. Against strong prior year comparatives like for likesales at HMV UK & Ireland were down 3.8%, although market share was strong, withincreases in both music and DVD. Waterstone's like for like sales were down2.8%, although the business ended the year by maintaining its leading marketposition. In the Group's overseas businesses, HMV Canada has continued to make excellentprogress, and for the full year increased total sales at constant rates by 5.2%,including 13.5% like for like, while HMV Asia Pacific increased total sales atconstant rates by 3.2%, including a like for like sales decrease of 1.7%. On 31 March 2005, the Group completed a refinancing of its senior bankfacilities, creating a more efficient capital structure. A five-year £260mrevolving credit facility was arranged, replacing an existing £150m revolvingcredit facility, together with outstanding term debt of £160m which was repaidin full. Consequent to the refinancing, £2.7m of unamortised deferred financingfees will be written-off in the financial year to 30 April 2005 as a non-cashexceptional interest charge. Preliminary announcement of results for the year ended 30 April 2005 will bemade on 28 June 2005. Trading Update------------------------------------------------------------------------------ 15 weeks ended 52 weeks ended 23 April 2005 23 April 2005------------------------------------------------------------------------------ Like for like Total Like for like Total sales growth(2) sales growth(2) sales growth(2) sales growth(2) % % % %------------------------------------------------------------------------------HMVUK & Ireland (3.8) 2.3 0.0 6.0Asia Pacific (2.3) 1.9 (1.7) 3.2Canada(4) 10.7 0.1 13.5 5.2------------------------------------------------------------------------------Total HMV (2.0) 2.0 1.0 5.3Waterstone's (2.8) (1.3) 1.3 2.5------------------------------------------------------------------------------HMV Group (2.2) 1.2 1.1 4.7------------------------------------------------------------------------------ 1 The 15 week period ended 23 April 2005 covers trading since the previous trading update. 2 Like for like sales growth and total sales growth are stated at constant exchange rates. 3 HMV Group's like for like sales performance measures stores that were open at the beginning of the previous financial year (i.e. open at the beginning of May 2003) and that have not been expanded, closed or resited during that time. It includes sales from internet sites in the UK, Japan and Australia. Stores resized (up or down) are excluded from like for like sales performance. Sales are only ever the net amount received. No adjustments are made for campaign or sale stock, and any supplier contribution to marketing promotion is accounted for within marketing expenditure. 4 Total sales include the results of HMV USA, where the final store closed on 3 November 2004. Enquiries: Paul Barker Susan GilchristHMV Group plc William Cullum01628 818 300 Eilis Murphy Brunswick Group 020 7404 5959 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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