The company announced this morning it had made a pro-forma profit before tax and exceptional items (treating Waterstone's and HMV Canada as continuing operations throughout the financial year) of £28.9m for the 53 weeks to April 30, down from £74.2m in 2010.

But after tax and other costs, it recorded a loss of £121.7m.

The result is a considerable blow for the retailer, which said in January it expected to announce annual profits across the group to be nearly £50m.