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