Laura Ashley unveils first pre-tax profits for three years

Laura Ashley, the retailer best known for floral skirts and stripy wallpaper, yesterday unveiled its first pre-tax profit for three years and claimed its frumpy image was now a thing of the past.

Laura Ashley, the retailer best known for floral skirts and stripy wallpaper, yesterday unveiled its first pre-tax profit for three years and claimed its frumpy image was now a thing of the past.

Pre-tax profit including exceptionals was £1.7m in the half year ended 29 July. That compared with a £7m deficit for the same period last year, which included losses from the group's now divested US business.

The last time Laura Ashley reported a full-year profit was in 1997. Analysts have upgraded their forecasts on the back of yesterday's results and are expecting 2000 earnings to reach £8m.

Jim Bellingham, chief financial officer, said: "We are back in the black." He said the group's home-furnishings division had been "the big star" of the first half. Like-for-like sales for the unit, which accounts for 55 per cent of total turnover, grew by 20 per cent in the six-month period.

Meanwhile, garment sales in the first half were level with the previous year. But like-for-like sales in the first seven weeks of the second half were up 16 per cent, helped by the launch of autumn and winter ranges.

Diana Bourne, head of public relations, said: "We are not frilly and flowery any more." She added more clothes were selling at full price, despite "unpredictable" high street conditions.

Laura Ashley has completed a refit of almost 60 per cent of its UK stores and plans to allot more space to home furnishings. It also hopes to have seven standalone home-furnishings shopsby the end of January. It is withdrawing franchises from 36 Homebase stores. Homebase is the home-improvement chain being sold by J Sainsbury.

Shares in Laura Ashley closed down 1.25p at 19.75p. The stock has risen 12 per cent in the past two weeks on positive expectation about the results.