HMV: modeFinance Credit Report

Tuesday, 15 January 2013

HMV GROUP PLC

MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

AA AAA

key

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Almost every day millions of people around the world are wondering the real creditworthiness of the companies with which they are in business. Every day these questions remain unanswered. modeFinance now aims to answer these questions in a simple, complete and immediate way.

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HMV GROUP PLC

Identification number

Not available

Country

United Kingdom

ZIP code and city

SL6 1SR - MAIDENHEAD

Address

SHELLEY HOUSE +44 1628 818 300 www.hmvgroup.com enquiries@hmvgroup.com

Legal form

Public company, quoted

Account

Consolidated

Incorporation date

1998/03

NACE 2 Sector

4761 - Retail sale of books in specialised stores

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Company name

Listed Status

Active

MORE Credit limit

Not assessable on the base of the available informations

plans 3 types of reports:

Turnover (th e) Rating s-peek

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ASKMORE Basic: This report includes modeFinance ’ s MORE Credit Ratings and MORE Credit Limit to help you in the decision making.

It covers all essential information including financial statements of the last three years and descriptive information including trade description and sector analysis.

This report type is ideally suited for decisions on transactions with each level of credit risk.

30/04/2011

24/04/2010

1,070,252

1,289,137

2,323,747

CC

CCC

BB

48.00%

19.00%

2.60%

100%

100%

100%

-2.88

-10.37

6.10

0.65

0.90

1.16

Current Ratio

0.94

0.70

0.65

Quick Ratio

0.56

0.50

0.20

Probability of default

Plus

Basic

28/04/2012

Confidence Level

TM

Solvency ratios Leverage ratio Total asset/Total liabilities Liquidity ratios

Profitability and economic equilibrium ratios Return on investement ROI (%) Return on equity ROE (%) Asset turnover Interest paid weight Gross Profit/Operating revenue

-5.20

2.51

10.70

-27.85

-5.66

49.50

3.41

2.17

2.86

-1.90

0.80

0.09

0.11

0.21

0.10

-0.59

1.22

11.38

Interest Coverage ratios EBIT interest coverage ratio

Analysis and trend of financial strength

modeFinance Headquarter Building A - AREA Science Park Padriciano 99 - 34149 Trieste - Italy Ph.: +39 040 375 5337 Fax: +39 040 375 6741 info@modefinance.com TM

key askMORETM is a registered mark of modeFinanceTM

MORE Credit Rating

D not available

non return

C

CC

extremly pathological pathological

CCC

B

BB

BBB

A

AA

AAA

high danger

weak

sufficient

adequate

good

very strong

extremely strong

HMV GROUP PLC

Tuesday, 15 January 2013 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

AA AAA

key

Sector Analysis Company

Healthy

Balanced

Vulnerable

Risky

Solvency ratios Leverage ratio

-2.88

0.45

2.10

6.60

-2.13

Total asset/Total liabilities

0.65

3.23

1.48

1.14

0.89

Current Ratio

0.94

2.65

1.36

1.03

0.82

Quick Ratio

0.56

1.54

0.64

0.38

0.33

Return on investement ROI (%)

-5.20

11.64

4.98

1.18

-12.19

Return on equity ROE (%)

-27.85

11.13

8.04

-2.20

-94.88

Liquidity ratios

Profitability and economic equilibrium ratios

Asset turnover

3.41

2.43

2.25

1.89

1.81

Interest paid weight

-1.90

0.00

0.12

0.14

-0.07

Gross Profit/Operating revenue

0.11

0.31

0.34

0.30

0.33

-0.59

1,000,000.00

6.86

0.49

-12.59

Days Sales Of Inventory (DIO)

33

45

57

73

84

Days Sales Outstanding (DSO)

7

7

8

8

11

Days Payable Outstanding (DPO)

25

24

44

45

83

Cash Conversion Cycle (DIO + DSO - DPO)

15

32

24

33

23

-

77

197

108

48

CC

A

BB

B

CC

Interest Coverage ratios EBIT interest coverage ratio Cash Conversion Cycle (days)

Numer of analyzed companies (Average) Rating

The sector has been chosen according to: international companies in the sector NACE 2 4761 with financial data of year 2012.

modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM

Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741

HMV GROUP PLC

Tuesday, 15 January 2013 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

key

Sector Analysis - Graphs

modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM

Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741

AA AAA

HMV GROUP PLC

Tuesday, 15 January 2013 MORE Credit Rating

C

D

CC CCC

B

BB BBB

A

AA AAA

key

Balance Sheet BALANCE SHEET (th e)

28/04/2012

30/04/2011

IFRS

IFRS

IFRS

1.22581

1.12079

1.15231

12

12

12

Total assets

313,561

593,124

812,839

Fixed assets

73,303

171,369

397,892

2,452

62,204

140,812

Tangible fixed assets

57,613

75,990

192,781

Other fixed assets

13,239

33,176

64,299

240,258

421,755

414,947

96,961

119,028

285,542

Accounting practice Exchange rate GBP - EUR Number of months

Intangible fixed assets

Current assets Stocks

24/04/2010

19,735

18,941

15,210

123,561

283,785

114,194

23,413

27,011

34,224

-166,832

-63,325

114,540

5,148

389,028

399,967

-171,981

-452,353

-285,427

Total liabilities

480,394

656,449

698,299

Non current liabilities

224,323

54,246

62,801

Long term debt

195,148

7,846

13,597

29,174

46,401

49,204

Current liabilities

256,071

602,203

635,499

Loans

40,819

207,347

96,218

Creditors

74,039

104,122

293,954

141,213

290,734

245,327

313,561

593,124

812,839

NET DEBT (th e)

28/04/2012

30/04/2011

24/04/2010

Short term debts

40,819

207,347

96,218

Long term debt

195,148

7,846

13,597

23,413

27,011

34,224

212,555

188,181

75,591

28/04/2012

30/04/2011

24/04/2010

42,658

33,848

6,799

-15,813

-180,448

-220,552

28/04/2012

30/04/2011

24/04/2010

Debtors Other current assets Cash & cash equivalent Shareholders funds Capital Other shareholders funds

Other non-current liabilities

Other current liabilities Total shareh. funds & liab.

Cash & cash equivalent Net debt

Working capital Net Current Assets

Days Sales Of Inventory (DIO)

33

34

Days Sales Outstanding (DSO)

7

5

2

Days Payable Outstanding (DPO)

25

29

46

Cash Conversion Cycle (DIO + DSO - DPO)

15

10

1

modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM

Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741

45

HMV GROUP PLC

Tuesday, 15 January 2013 MORE Credit Rating

C

D

CC CCC

B

BB BBB

A

AA AAA

key

Income Statement INCOME STATEMENT (th e)

28/04/2012

30/04/2011

IFRS

IFRS

IFRS

1.22581

1.12079

1.15231

12

12

12

Accounting practice Exchange rate GBP - EUR Number of months Sales

24/04/2010

1,070,252

1,289,137

2,323,747

-17

-45

-

0

0

0

Operating revenue / turnover

1,070,252

1,289,137

2,323,747

Total operating costs

1,088,639

1,274,455

2,237,208

Costs growth (%)

-15

-43

-

Service costs

-

-

-

Material costs

-

-

-

161,561

261,257

272,636

59,084

197,036

138,968

Revenues growth (%) Other revenues +/- variation in inventories and contract in progress + Fixed assets own construction capitalized

Costs of employees EBITDA Depreciation

77,471

182,353

52,430

EBIT

-18,387

14,682

86,538

Financial P/L

-28,929

-11,768

-7,144

Financial revenue

2,084

224

461

Financial expenses

31,013

11,992

7,605

31,013

11,992

7,605

-47,316

2,914

79,394

-1,471

-1,569

0

Extr. and other revenue

-

-

-

Extr. and other expenses

-

-

-

-48,787

1,345

79,394

-2,329

4,931

22,700

-46,458

-3,587

56,694

Interest paid P/L before tax Extr. and other P/L

P/L before tax + Extr. and other P/L Taxation P/L for period

28/04/2012

30/04/2011

24/04/2010

Costs of Good Sold

956,374

1,024,854

2,085,795

Gross Profit

113,877

264,283

237,952

Other Operating Expenses

132,265

249,601

151,413

28/04/2012 Cash flow Added value

109,124

227,265

452,016

370,928

-

modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM

24/04/2010

178,767

28/04/2012 Number of employees

30/04/2011

31,013

30/04/2011 -

24/04/2010 14,154

Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741

HMV GROUP PLC

Tuesday, 15 January 2013 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

key

Evolutions and trends

modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM

Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741

AA AAA

HMV GROUP PLC

Tuesday, 15 January 2013 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

AA AAA

key

Qualitative information Full overview

It is an international retailer of music, books and video. The company has 580 stores in eight different countries.

It is a combination of two retail brands which are leaders in their respective fields: HMV and Waterstone’s. The company was founded in March 1998 following the acquisition of HMV and Dillon’s from EMI and Waterstone’s from WH Smith. Its corporate headquarters located in Maidenhead, United Kingdom. Its brands include music products, books and video. The company is one of the world’s leading retailers of music and video and the leading retailer of books in the United Kingdom. It is one of the most well - known and respected music and video retail brands around the globe. The company’s seven key objectives are: apply the HMV blueprint across the group, secure leadership in chosen markets, deliver unrivalled authority, achieve superior financial performance, exploit new product opportunities, embrace alternative distribution channels and technologies, and optimise store portfolio. It is active in the United Kingdom, Australia, Germany, Hong Kong, Japan, Ireland, the United States, Canada and Singapore. The company focuses on providing an authoritative range and depth of selection that is superior to that of its competitors, including hard - to - find recordings and a large number of back catalogue titles.

History

Founded following the acquisition of HMV and Dillon’s from EMI and Waterstone’s from WH Smith.

Primary business line

Operates as an international retailer of music, books and video.

Secondary business line

Not available.

Main activity

Retail; Services.

Secondary activity

Not available.

Main products and services

Music products, books and video.

Size estimate

One of the world’s leading retailers of music and video and the leading retailer of books in the United Kingdom.

Strategy, organization and policy

Apply the HMV blueprint across the group, secure leadership in chosen markets, deliver unrivalled authority, achieve superior financial performance, exploit new product opportunities, embrace alternative distribution channels and technologies, and optimise store portfolio.

Strategic alliances

Not available.

Membership of a network

Not available.

Main brand names

Not available.

Main domestic country

United Kingdom.

Main foreign countries or regions

Australia; Germany; Hong Kong; Japan; Ireland; United States; Canada; Singapore.

Main production sites

Not available.

Main distribution sites

Australia; Germany; Hong Kong; Japan; Ireland; United States; Canada; Singapore.

Main sales representation sites

Not available.

modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM

Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741

HMV GROUP PLC

Tuesday, 15 January 2013 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

AA AAA

key

Main customers

Not available.

Auditor/Advisor/Bank name

type

address

ERNST & YOUNG LLP LLOYDS TSB BANK PLC THE ROYAL BANK OF SCOTLAND

Auditor Banker Banker

-

SIMMONS & SIMMONS NOMURA CAPITA REGISTRARS CITIGROUP

Law Firm Brand Name Advisor Registrar Investment Advisor

-

name

date of birth

nationality

function

Mr. David Alexander Robertson Adams

12/11/1954

United Kingdom

Non Executive Director - Non - Exec Contact

Mr. Andrew John Duncan Mr. Ian Peter Kenyon Mr. Trevor Philip Moore Mrs. Orna Gabrielle Ni Chionna

31/07/1962 23/09/1961 12/07/1969 21/02/1956

United Kingdom United Kingdom United Kingdom United Kingdom

Mr. Philip Edward Rowley

22/09/1952

United Kingdom

Non Executive Director - Non - Exec Contact Director Director Director (occupation: Company Secretary); Senior Independent Non Executive Director; Non Executive Director - Non - Exec Contact Director

Miss Elaine Marriner

12/10/1961

United Kingdom

Company Secretary

Board

Sharehoders (the first twenty shareholders ordered by Direct %) Rating:

UBS AG via its funds Country ISO code NACE Rev. 2, Core code Direct % Total %

CH 12.68

Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date

10804.23 36693 2012/09

Address : Not available

modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM

Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741

HMV GROUP PLC

Tuesday, 15 January 2013 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

AA AAA

key

Rating:

BB

GB 10.55 -

Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date

180.85 129.62 0 2011/04

CA

Operating Revenue (MIL $)

23131.25

10.00

Total Assets (MIL $) Number of Employees Information date

811430.59 78397 2012/09

GB 7.75

Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date

GB

Operating Revenue (MIL $)

224.59

7.29

Total Assets (MIL $) Number of Employees Information date

620.03 6 2012/09

Country ISO code NACE Rev. 2, Core code Direct %

7.25

Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees

Total % Address : Not available

-

UBS GLOBAL ASSET MANAGEMENT (UK) LTD Country ISO code NACE Rev. 2, Core code Direct % Total % Address : Not available

Rating:

TORONTO DOMINION BANK via its funds Country ISO code NACE Rev. 2, Core code Direct % Total % Address : Not available

Rating:

HENDERSON GROUP PLC Country ISO code NACE Rev. 2, Core code Direct % Total %

715.69 2613.37 1043 2012/09

Address : Not available

Rating:

HENDERSON GLOBAL INVESTORS LIMITED Country ISO code NACE Rev. 2, Core code Direct % Total % Address : Not available

Rating:

CHASE NOMINEES LIMITED A/C TMBC1

0

Information date

2010/06

Rating:

BARCLAYS PLC via its funds Country ISO code NACE Rev. 2, Core code Direct % Total % Address : Not available

CCC

CCC

GB 7.09

Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date

Country ISO code NACE Rev. 2, Core code

KN -

Operating Revenue (MIL $) Total Assets (MIL $)

Direct % Total % Address : Not available

6.10

45739.82 2417369.13 141100 2012/09

Rating:

CHANNEL TRUSTEES LIMITED

Number of Employees Information date

modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM

0 2011/01

Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741

HMV GROUP PLC

Tuesday, 15 January 2013 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

AA AAA

key

Rating:

FIDELITY INTERNATIONAL LIMITED Country ISO code NACE Rev. 2, Core code Direct % Total % Address : Not available

GB 5.44 -

Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date

GB

Operating Revenue (MIL $)

544.23

4.74 -

Total Assets (MIL $) Number of Employees Information date

592.47 1226 2011/07

BM 4.65

Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date

-

Operating Revenue (MIL $)

Rating:

SCHRODER INVESTMENT MANAGEMENT LIMITED Country ISO code NACE Rev. 2, Core code Direct % Total % Address : Not available

BBB

Rating:

FIL LIMITED Country ISO code NACE Rev. 2, Core code Direct % Total %

0 2010/06

0 2010/08

Address : Not available

Rating:

JURANGKOOL APICHART Country ISO code NACE Rev. 2, Core code Direct % Total % Address : Not available

-

4.63 -

Total Assets (MIL $) Number of Employees Information date

Country ISO code NACE Rev. 2, Core code Direct %

GB 4.59

Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees

200.45 74.58 0

Total % Address : Not available

-

Information date

2010/06

Rating:

ARTEMIS FUND MANAGERS LIMITED

B

Rating:

GAM HOLDING AG via its funds Country ISO code NACE Rev. 2, Core code Direct % Total % Address : Not available

2012/03

CH 4.02

Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date

Country ISO code NACE Rev. 2, Core code

GB -

Operating Revenue (MIL $) Total Assets (MIL $)

Direct % Total % Address : Not available

2.87 3.62

Rating:

VIDACOS NOMINEES LIMITED

D

Number of Employees Information date

modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM

213.76 13 2012/09

0 0 2011/02

Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741

HMV GROUP PLC

Tuesday, 15 January 2013 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

AA AAA

key

Rating:

AA

GB 3.62

Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date

477.4 364.55 791 2011/02

GB

Operating Revenue (MIL $)

STANDARD LIFE INVESTMENTS LIMITED Country ISO code NACE Rev. 2, Core code Direct % Total % Address : Not available

Rating:

HSBC HOLDINGS PLC via its funds Country ISO code NACE Rev. 2, Core code Direct % Total % Address : Not available

68347

3.58

Total Assets (MIL $) Number of Employees Information date

2555579 298000 2012/09

Rating:

AA

GB 3.38

Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date

372.51 488.06 657 2012/09

FR

Operating Revenue (MIL $)

HARGREAVES LANSDOWN PLC via its funds Country ISO code NACE Rev. 2, Core code Direct % Total %

CCC

Address : Not available

Rating:

SOCIÉTÉ GÉNÉRALE via its funds Country ISO code NACE Rev. 2, Core code Direct % Total % Address : Not available

2.95

Total Assets (MIL $) Number of Employees Information date

Country ISO code NACE Rev. 2, Core code Direct %

NO 2.89

Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees

Total % Address : Not available

-

31648.79 1528577.25 159000 2012/09

Rating:

NORGES BANK

2149.92 609649.07 0

Information date

2011/06

Subsidiaries (the first twenty subsidiaries ordered by Direct %) Rating:

HMV (IP) LIMITED Country ISO code NACE Rev. 2, Core code Direct % Total %

GB -

AA

Operating Revenue (MIL $) Total Assets (MIL $)

100.00 100.00

Number of Employees Information date

modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM

12.96 25.43 2012/01

Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741

HMV GROUP PLC

Tuesday, 15 January 2013 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

AA AAA

key

Rating:

HMV GROUP PENSION TRUSTEES LIMITED Country ISO code NACE Rev. 2, Core code Direct % Total %

GB 100.00 100.00

D

Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date

HMV GROUP SENIOR EXECUTIVE PENSION TRUSTEES LIMITED

Rating:

Country ISO code NACE Rev. 2, Core code Direct % Total %

GB 100.00 100.00

Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date

GB 100.00 100.00

Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date

HK 100.00 100.00

Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date

GB 100.00 100.00

Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date

SG 100.00 100.00

Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date

GB 100.00 100.00

Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date

IE 100.00 100.00

Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date

Rating:

HMV MUSIC LIMITED Country ISO code NACE Rev. 2, Core code Direct % Total %

CCC 1172.35 282.04 4905 2012/05

2010/04

2012/05

Rating:

RUSTICO HOLDINGS LIMITED Country ISO code NACE Rev. 2, Core code Direct % Total %

2010/04

Rating:

REVOLVER RECORDS LIMITED Country ISO code NACE Rev. 2, Core code Direct % Total %

2010/04

Rating:

HMV SINGAPORE PTE LIMITED Country ISO code NACE Rev. 2, Core code Direct % Total %

0 2012/07

Rating:

HMV HONG KONG LIMITED Country ISO code NACE Rev. 2, Core code Direct % Total %

D

Rating:

HMV GUERNSEY LIMITED Country ISO code NACE Rev. 2, Core code Direct % Total %

0 2012/05

modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM

Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741

2012/01

HMV GROUP PLC

Tuesday, 15 January 2013 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

AA AAA

key

Rating:

VOICE GROUP LIMITED Country ISO code NACE Rev. 2, Core code Direct % Total %

Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date

GB 100.00 100.00

Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date

GB 100.00 100.00

Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date

GB 100.00 100.00

Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date

BE 100.00 100.00

Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date

NL 100.00 100.00

Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date

GB 100.00 100.00

Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date

GB 100.00

Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date

0 2012/03 A

Rating:

FORUM CLUB (KENTISH TOWN) LIMITED Country ISO code NACE Rev. 2, Core code Direct % Total %

D

4.06 3.29 19 2010/04

2010/04

Rating:

WATERSTONE’S BOOKSELLERS LIMITED Country ISO code NACE Rev. 2, Core code Direct % Total %

13.23 2012/03

Rating:

WATERSTONE’S BOOKSELLERS AMSTERDAM BV Country ISO code NACE Rev. 2, Core code Direct % Total %

C

Rating:

WATERSTONE’S BOOKSELLERS BELGIUM Country ISO code NACE Rev. 2, Core code Direct % Total %

0 2012/03

Rating:

VOICE RETAIL MEDIA LIMITED Country ISO code NACE Rev. 2, Core code Direct % Total %

D

Rating:

VOICE RETAIL LIMITED Country ISO code NACE Rev. 2, Core code Direct % Total %

0 2012/03

Rating:

VOICE RETAIL & MEDIA LIMITED Country ISO code NACE Rev. 2, Core code Direct % Total %

-

GB 100.00 100.00

modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM

2010/04 BBB

Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741

4.03 7.13 34 2010/04

HMV GROUP PLC

Tuesday, 15 January 2013 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

AA AAA

key

Rating:

HMV IRELAND LIMITED Country ISO code NACE Rev. 2, Core code Direct % Total %

Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date

GB 100.00

Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date

IE 100.00

Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date

Rating:

MF PRESENTS LIMITED Country ISO code NACE Rev. 2, Core code Direct % Total %

113.63 36.73 293 2010/04 D 4.8 0.21 9 2010/04

Rating:

WATERSTONE’S BOOKSELLERS IRELAND LIMITED Country ISO code NACE Rev. 2, Core code Direct % Total %

B

IE 100.00

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Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741

2010/04

HMV GROUP PLC

Tuesday, 15 January 2013 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

AA AAA

key

ASKMORE rating guide General vision

A credit rating is an opinion of the general creditworthiness of an obligor (issuer rating), or the creditworthiness of an obligor in respect of a specific debt security, or other financial obligation (issue rating), based on relevant risk factors.

The Multi Objective Rating Evaluation (MORE) model is essentially used to assess the level of distress of industrial companies by using data included in financial statements.

The basic idea of the model is to analyze a set of financial and economic ratios in a predictive corporate bankruptcy model with the purpose of creating a fundamental credit rating model for each industrial sector. Results of the model are obtained by applying newly developed numerical methodologies, drawing together financial theory, data mining and engineering design methodologies. The heart of MORE is a multi dimensional and multi objective algorithm that produces a classification of each company, by taking into account any attributes (such as sector and country) characterizing a firm.

The model gives the opportunity to assign a rating to a company even without considering a complete data analysis and allows to process quality information. It induces a better understanding of a company’s strength and weakness thanks to sophisticated data mining tools and taking into account the analyst knowledge.

The MORE rating vision is to look at the fundamental economics of the company. The main idea is to evaluate the rating observing every aspect of the economical and financial behavior of the company: better is the equilibrium between the different aspects, better will be the final rating.

This is done studying, evaluating and aggregating the most important sections of the financial and economic behavior of a company such as: profitability, liquidity, solvency, interest coverage and efficiency.

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Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741

HMV GROUP PLC

Tuesday, 15 January 2013 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

AA AAA

key

Rating scale Rating class

Rating macro class

The company’s capacity to meet its financial commitments is extremely strong. The company shows an excellent

AAA

AA

Assessment

economic and financial flow and fund equilibrium.

Healthy

The company has very strong creditworthiness. It also has a good capital structure and economic and financial equilibrium. Difference from AAA is slight.

The company has a high solvency. The company is however more susceptible to the adverse effects of changes in

A

circumstances and economic conditions than companies in higher rated categories.

Capital structure and economic equilibrium are considered adequate. The company’s capacity to meet its financial commitments could be affected by serious unfavourable events.

BBB Balanced

A company rated BB is more vulnerable than companies rated BBB. Furthermore the company faces major ongoing uncertainties or exposure to adverse business, financial, or economic conditions.

BB

The company presents vulnerable signals with regards to its fundamentals. Adverse business, financial, or economic

B

conditions will be likely to impair the company’s capacity or willingness to meet its financial commitments.

Vulnerable

CCC

A company rated CCC has a dangerous disequilibrium on the capital structure and on its economic and financial fundamentals. Adverse market events and an inadequate management could affect with high probability the company’s solvency.

CC

The company shows signals of high vulnerability. In the event of adverse market and economic conditions, the company’s strong disequilibrium could increase.

Risky

C

The company shows considerable pathological situations. commitments is very low.

D

The company has not any longer the capacity to meet its financial commitments.

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The company’s capacity to meet its financial

Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741

HMV GROUP PLC

Tuesday, 15 January 2013 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

AA AAA

key

Fundamental Credit Rating Ratios Analysis area

Ratio

Assessment This measures the level of total liabilities of the company in comparison

Leverage ratio

with equity.

Solvency ratios

Financial ratios

Assets to debt

This indicates company’s solvency. The company shows a level of deficit when the value of this ratio is under one unit.

Fixed Assets coverage ratio

This is calculated only for holdings. It measures the capital structure i.e. whether a company covers the fixed assets with long term capital.

Current ratio

This measures whether a company has sufficient short-term assets to cover its short-term liabilities.

Liquidity ratios This compares current liabilities only to those assets that can be readily

Quick ratio

turned into cash.

Return on Investement(ROI)

This measures the profitability of company investments without regard to the way the investment is financed.

Return on Equity(ROE)

This measures the profitability of the equity.

Asset turnover

This indicates the investments turnover with regards to sales. The level assumed from the ratio depends on the sector in which the company operates.

Profit margin

This indicates the profitability of sales.

Interest Paid coverage

This indicate the ability of the company to cover interest expenses through the economic margins (Gross profit and EBIT) and through the cash flow from operating activities.

Profitability and economic ratios

Interest coverage ratio

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Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741

HMV GROUP PLC

Tuesday, 15 January 2013 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

AA AAA

key

MORE Credit Limit, Probability of default and Confidence Level MORE Credit Limit

MORE Credit limit is the estimation of the amount of maximum credit that is possible to assign on a commercial relationship with the analyzed company with an outlook of one year. modeFinance used the following values associated with the company analyzed while computing the credit limit:

• Size; • Years in Business; • Average number of suppliers; • Liquidity of the company and the comparison with its sector; • The funds dedicated to be paid to suppliers; • The likelihood that a company may pay its debts in the next 12 months (MORE Ratings).

The credit limit in this report is merely a suggested value of commercial credit limit calculated on the basis of annual public data. This value should be reviewed by paying attention to the Confidence Level value and by using other information such as other business information, news... etc; and private information such as the relationship with client, history of payments, guarantees and the knowledge of the sector.

Probability of default e Confidence Level

In addition to the MORE Rating, modeFinance also estimates the probability of default and provides a level of confidence. The probability of default is the degree of certainty (in quantitative terms) that the company will go into default.

As the probability of default is strongly affected by the economic climate that the company is operating in, companies in the same MORE class will not necessarily have the same probability of default.

The MORE model can produce a MORE rating even if there is missing data by using an associated confidence level:

Confidence =

P Available Information P Total Information

The level of confidence does not indicate financial confidence in the company. It is a reflection of the variations in availability of financial data across Europe due to filing regulations and suggests the degree of financial detail the MORE rating is able to take into account for each company.

For companies with fully populated records a confidence level of 100% would be applied: companies where no financial data is provided, 0%. This puts the MORE rating in a context for the user and aids interpretation.

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Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741

HMV GROUP PLC

Tuesday, 15 January 2013 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

AA AAA

key

Notes and disclaimer NOTES

modeFinance has based the present analysis on the company available financial statements, coming from one or more of the following sources: local providers, Commercial Register (Companies House), websites, modeFinance’s database etc.

DISCLAIMER

All Rights Reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the publisher modeFinance. The facts of this report are believed to be correct at the time of publication but cannot be guaranteed. Please note that the findings, conclusions and recommendations that modeFinance delivers will be based on information gathered in good faith from both primary and secondary sources, whose accuracy we are not always in a position to guarantee. As such modeFinance can accept no liability whatever for actions taken based on any information that may subsequently prove to be incorrect.

Contacts

Info web

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Phone

+39 040 3755337

Company Products Where

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