HMV Group plc Ordinary 1p (HMV)
Sell : 79.75p | Buy : 80.00p | up 3.20p
Prices as at 04:24:47 on 12-03-10 Market closed Search UK shares
Company overview
The group is a major retailer of music, films and gaming software via its HMV brand, along with and books via its Waterstone’s outlets. Although the bulk of sales are generated in the UK and Ireland, overseas stores include interests in Canada, Hong Kong, Holland and Belgium.HL Comment (14 January 2010)
The group’s recent trading statement (14Jan2010) again saw management unveiling a mixed performance. Whilst the group’s HMV UK business reported its third successive year of record trading, the performance of the company’s Waterstone’s books business was summarised as unsatisfactory. HMV UK grew total sales by 14.6pc, driven by positive performances at the company’s ex-Zavvi and temporary Christmas stores. Furthermore, improved sales trends were seen at the group’s HMV International business, whilst the HMV’s online channel enjoyed double digit sales growth. As for Waterstone’s, total sales declined by 8.6pc, with like-for-like sales down by 8.5pc. All in all, while noting that further improvements were necessary, management remained confident in its ongoing recovery plan along with the group’s increasingly specialist position on the high street.Negative Points
- The group’s products lend themselves to the format of internet retailing, with the shadow of Amazon and Apple continuing to cast itself.
- Overall group like-for-like sales remained in decline (-1.2pc).
- Competition from the supermarkets remains intense.
- Group debt has recently increased, mainly thanks to an extension of the group’s online interests.
- With UK government borrowing at record highs, spending cuts and possibly tax increases look likely over the medium term.
Positive Points
- Market share gains have been made, with the demise of fellow retailers such as Woolworths and Borders potentially working in the group’s favour.
- A push into internet retailing continues.
- The dividend currently provides some share price support.
- A restructuring plan has reduced group costs.
- Management initiatives are evident, with complementary arenas such as concert ticket sales, a loyalty card scheme and even cinemas being pursued.
- Relatively low cost ticket items should continue to appeal to hard pressed consumers.
- The wider economy has shown signs of stabilising, with growth in unemployment levels recently slowing.
Consensus
On balance, market consensus opinion currently denotes a strong hold.
All yield figures are variable and not guaranteed.
What the Brokers Say
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Strong
SellStrong
Buy -
Strong Buy: 5 Buy: 0 Neutral: 4 Sell: 1 Strong Sell: 4 Total: 14
This is not a recommendation, it represents the consensus view of a basket of brokers. If less than 5 brokers it may not be a valid consensus. HL might not concur and takes no responsibility.
Report & Accounts
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Important dates
Past events
| Interim Dividend Payment Date | 1-02-2010 |
| Interim Ex-Dividend Date | 30-12-2009 |
| Interim Results | 11-12-2009 |
| Final Dividend Payment Date | 13-10-2009 |
| AGM | 3-09-2009 |
| Final Ex-Dividend Date | 2-09-2009 |
| Final Results | 30-06-2009 |
| Trading Announcement | 29-04-2009 |
| Interim Dividend Payment Date | 2-02-2009 |
| Trading Announcement | 14-01-2009 |
| Interim Ex-Dividend Date | 31-12-2008 |
| Interim Results | 11-12-2008 |
| Final Dividend Payment Date | 10-10-2008 |
| AGM | 5-09-2008 |
| Final Ex-Dividend Date | 27-08-2008 |
| Final Results | 1-07-2008 |
| Trading Announcement | 9-05-2008 |
| Trading Announcement | 12-03-2008 |
| Interim Dividend Payment Date | 1-02-2008 |
| Trading Announcement | 17-01-2008 |
| Interim Ex-Dividend Date | 2-01-2008 |
Fundamental Data
| Year Ending | Revenue (m) | Profit Before Tax (m) | EPS (p) | P/E Ratio | PEG | EPS Growth (%) | Total Dividend | Dividend Yield |
|---|---|---|---|---|---|---|---|---|
| 25-04-2009 | 1,956.70 | 61.30 | 10.80 | 13.00 | 1.30 | 10.00 | 7.40 | 5.10 |
| 26-04-2008 | 1,874.90 | 52.00 | 9.20 | 12.70 | 0.60 | 23.00 | 7.40 | 5.80 |
| 28-04-2007 | 1,684.80 | 18.70 | 3.50 | 13.80 | n/a | (53.00) | 7.40 | 6.50 |
| 29-04-2006 | 1,825.90 | 80.20 | 14.00 | 10.30 | n/a | (25.00) | 7.40 | 4.10 |
| 30-04-2005 | 1,885.60 | 128.00 | 22.70 | 9.70 | n/a | n/a | 6.80 | 3.00 |
Latest HMV Director Deals
| Traded | Action | Notifier | Position | Price | Amount | Value |
|---|---|---|---|---|---|---|
| 14-01-2010 | Buy | Neil Bright | Group Finance Director | 84.00p | 148.00 | £124.32 |
| 14-01-2010 | Buy | Simon Fox | CEO | 84.00p | 148.00 | £124.32 |
| 14-01-2010 | Buy | Elaine Marriner | Company Secretary | 84.00p | 148.00 | £124.32 |
| 14-12-2009 | Buy | Neil Bright | Group Finance Director | 102.03p | 123.00 | £125.50 |
| 14-12-2009 | Buy | Simon Fox | CEO | 102.03p | 123.00 | £125.50 |
| 14-12-2009 | Buy | Gerry Johnson | Executive Director | 102.03p | 122.00 | £124.48 |
| 14-12-2009 | Buy | Elaine Marriner | Company Secretary | 102.03p | 123.00 | £125.50 |
Any Overview and Comment is provided by Hargreaves Lansdown. What the Brokers Say, Important Dates and Financials are supplied by Digital Look Ltd. Prices delayed by at least 15 minutes.