Beleaguered entertainment and book retailer HMV has issued its third profit warning this year, but its lenders have extended the period over which its banking covenants will be tested by two months.
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With four weeks of its financial year to go, the company said that full-year pre-tax profits will come in at around £30m. Last month the company said profits would come in “moderately below” market forecasts of £45m. “Trading conditions have remained difficult,” it said in a statement.
The company added that its lenders have moved the measurement period for HMV’s covenant tests from the year ending April 30 to the year ending July 2. The group said it was “maintining a regular and constructive dialogue” with its lenders, who remain supportive.
The group is in discussions with potential bidders about the possible sale of both Waterstones and HMV Canada.