Embattled entertainment retailer HMV may not make a profit in its next financial year, according to Arden Partners analyst Nick Bubb.

He said: “We now think there will not be any pre-tax profit in 2011/2012, given the way things are going on trading, and with interest charges set to climb after a potential refinancing.”

Bubb said he expected April to have “started badly” because of the good weather and the timing of Easter, and has cut pre-tax profit forecasts for 2010/2011 from £39m to £26m as a result.

However, some analysts maintain HMV will make money next year. Seymour Pierce estimates HMV will make £14.1m, although it has slashed forecasts by 53% on the back of its latest profit warning.

HMV said earlier this month it expected full-year pre-tax profits for this financial year to come in at about £30m, rather than just below £45m as forecast in March.

One source close to the situation said it was “nonsense” to rule out profit for next year, highlighting that earnings would be influenced by many variables, including whether Waterstone’s was sold.

This week Sony, Universal, EMI and Warner Music showed their support for HMV by relaxing payment terms, it was reported.

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