Irish expansion costs put HMV into the red
Published 12/05/2016 | 02:30
Expansion costs at the HMV business in Ireland last year put the entertainment retail firm into the red to record pre-tax losses of €144,000.
During the 12 months to the end of January last year, HMV Retail Ireland Ltd opened two new stores - in Dublin and Galway - and this contributed to revenues more than doubling, from €9.67m to €19.66m.
However, the period under review was a 53-week period while the prior period was for 18 weeks covering the busy Christmas shopping period.
The firm invested €600,000 in the business during the 12 months to the end of January 2015. The company's operating profit declined by 75pc from €1.03m to €254,000.
According to the directors' report, the firm achieved "significant market share growth in both its core and music markets".
The directors state that this was achieved through the opening of the two new stores; enhanced terms negotiated with key suppliers and increased marketing spend.