UK buyout firm Terra Firma today unveiled a candid annual report for UK music group EMI which it acquired in a controversial deal last year, and it shows that the company was in a worse state than due diligence suggested prior to the buyout.

The report shows EMI posted a £757m (€942m) pro forma loss in the year to March 31, 2008. It bought the business for £2.4bn in August last year.