THE HMV group has announced forecast-beating results which suggest it has overcome competition from supermarkets.

The group includes the HMV music and video chain and Waterstone's book stores in Swindon there are Waterstone's stores in the Brunel Centre and in Regent Street and an HMV in Regent Street. There are 550 outlets, including 190 Waterstone's.

The group posted a 21.9 per cent rise in annual profits, and said it was pleased with the Waterstone's performance. Pre-tax profits rose £117.6 million.

In the last year it has been estimated that supermarkets have given 40 per cent more space to music and video.