Despite the recession, HMV has posted positive annual performance results.

The high street failures of Zavvi and Woolworths have bolstered entertainment retailer HMV’s performance, reporting an 11.5% rise in annual profits.

Following the collapse of Zavvi, HMV bought out 25 of its stores and has profited from the downfall of its former retail rival as HMV’s market share increased in all product categories.

The HMV group, which also includes bookstore chain Waterstone’s, announced its full year results today (30 June). Total group sales grew by 4.4% in the 52 weeks to 25 April.

HMV performed particularly well with like-for-like sales up 1.9%. Waterstone’s like-for-like sales fell 3.8%.

The company’s total profit before tax was £61.3 million, up from £52m the year before.

The group also experienced an increase in its online retail ventures, with sales at hmv.com up 16% and sales at waterstones.com up 60%.

HMV saved £16m during the year through planned cost reduction methods, which were completed successfully, adding to its annual revenue.

Chief Executive Simon Fox said: “At the end of the second year of our three-year transformation plan the Group has delivered further profit growth, despite the challenging retail environment.

“We are continuing to adapt to meet the changes in our markets and, whilst there is still much to do, our plans for the third year of our programme are on track.”