HMV has enjoyed more than 25 per cent year-on-year growth in profit, thanks to surging sales of video games.

The Group’s pre-tax profit increased 25.2 percent to £56.6 million for the year to April 26th, with the retailer ahead of plan after one year of its three-year turnaround strategy.

HMV said like-for-like sales at its HMV UK & Ireland arm were up 11.4 percent in the year to £1.87 billion, while Waterstone's saw like-for-likes increase 3.3 percent.

Games and technology accounted for 21 per cent of HMV's total business across the year, up from 14 per cent last year.

"We had a terrific year for games last year, with growth of about 60%," said Simon Fox, HMV's chief executive.

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"In the year in, we're ahead of where we planned to be. We're riding the game growth curve, and we're riding ahead of the curve.”