HMV made a £16.2m pre-tax loss in its year to April 28 but is confident it will achieve at least £10m profit in its current year.

Sales plummeted 19.7% over the year to £923.2m.

Like-for-likes plunged 12.1% over the period but retail gross margin increased by 90 basis points.

After tax and exceptional items, HMV made a £80.4m loss.

The retailer reported a strong increase in technology sales, which now account for 11% of turnover, as it vies to become a “credible destination” for entertainment devices as customers increasingly migrate online for its once core music products.

HMV believes entertainment devices will grow to become the most significant part of its business.

The retailer plans to refit 25 more stores to give it a wider technology offer.

HMV insisted it achieved a “good market share” in music, film and games and said those categories will remain “at the heart” of its offer.

Over the year the retailer negotiated a £220m bank refinancing to September 2014 and sold the Hammersmith Apollo for £32m in a deal completed yesterday. It is still looking to sell the remaining venues in its Live business and is in “preliminary discussions” regarding their disposal.

Both HMV chief executive Simon Fox and group finance director David Wolffe are to exit the retailer. New boss, former Jessops chief executive Trevor Moore, and group finance director Ian Kenyon are set to take over on September 3.

Fox said: “The last year has been a difficult and challenging one for HMV and, as expected, this is reflected in our annual results.

“Although we have clearly been through a turbulent period, our financial position is now stable thanks to the support of our suppliers, banks and colleagues, and I am confident, as I hand over the reins to Trevor Moore, that HMV has a secure future under his leadership.”

Meanwhile HMV has appointed Rob Wood to the position of head of property. He replaces property director Mark Bowles, who is leaving to join Boots, as reported in April.

Wood said: ”I look forward to continue to drive value from our property portfolio to support the company’s ongoing transformation into a multi-channel entertainment and technology retail specialist.”