Paul Smith shrugged off the downturn in the UK and the Japanese tsunami to increase its profits by more than a third in the past year.
But the fashion company, founded by the designer Sir Paul Smith in 1970, scaled back its dividend payment to just £309,000 in the year to 30 June. This followed a bumper £3.45m payout in 2010.
Its more conservative dividend reflected increased capital expenditure, including on new stores worldwide as well as on distribution and IT in Nottingham.
Paul Smith's pre-tax profits rose by 36 per cent to £34.1m in the year to June on turnover up 12 per cent at £196m.
The company – which has 21 standalone UK shops and 132 overseas – boasted its wholesale business had "surpassed order levels achieved before the downturn". It even grew its Japanese licensing income by 5 per cent, despite a "very difficult" year with the tsunami in March.
Sir Paul sold a 40 per cent stake to a Japanese licensee, Itochu, in 2006 but retained control.
He also remains its designer and chairman and was knighted in 2000. He and his wife are worth an estimated £260m.