British bookstore chain Waterstones has reduced its operating losses following its sell-off from HMV to Russian billionaire Alexander Mamut.

In the first full year of trading after being sold by HMV Group for £53.5 million, the chain made an operating loss before exceptional items of £12.2 million, a £13.2 million improvement from the £25.4 million operating loss reported in the previous period and despite a fall in sales of 2.9% to £398.5 million.