LONDON (ShareCast) - Music, DVD and games retailer HMV posted a rise in full year profits and turnover as trading in its main division was boosted by the demise of its smaller rivals.
Like for like sales at HMV UK & Ireland rose 1.9%
as it gained more underlying market share from the likes of Woolworths (Munich:
886853 -
news) and Zavvi, which went into administration last year. The group has already snapped up 25 Zavvi stores.
"We are working hard to maximise both the market share opportunity that has arisen from the withdrawal of competitors, and the investments that have been made over the last two years to improve performance," said the group.
Pre-tax profit for the year rose to £61.3m from £52m on sales that increased 4.4% to £1,9576m.
But it was not all good news. Book retailer Waterstone's saw like-for-like sales fall 3.8%, while HMV International slipped 3.4%.
The group said the performance of both HMV International and Waterstone's was more adversely impacted by weak trading conditions and key initiatives are underway to improve the operating effectiveness and financial performance of these businesses.
It saw continued sales growth of online channels, with hmv.com up 16% and waterstones.com up 60%.
HMV is in the final year of a three-year transformation plan and chief executive Simon Fox said its plans are on track.
"Whilst we are cautious about the economic environment, at this very early stage in the year we are confident of our plans for the current financial year, as well as our new initiatives to deliver growth beyond the life of the current three-year transformation plan," said Fox.
"We are also looking at further growth opportunities available to us, and are very pleased with the recently announced joint venture in live music and partnerships for film and mobile," he added.
Total dividend was maintained at 7.4p.
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