Moss Bros looks sharp with sales rise and talk of divi

Moss Bros delivered some pre-Christmas cheer to the UK's troubled High Street with a 10.5% spike in sales, prompting the City to talk of the return of dividend payments.

The men's suit specialist's sales benefited from higher average prices due to it selling a greater proportion of upmarket suits from the likes of Ted Baker and French Connection. But Moss Bros also boasted strong demand for its cheaper own-brand Blazer jackets and trousers, adding it had not passed on to customers in full the increase in wool prices.

Chief executive Brian Brick said: "Our ranges are better. We have kept our price competitiveness and have absorbed some of the price increases."

Like-for-likes sales jumped by 10.5% over the 19 weeks to 10 December, although this was lower than its 15.4% growth in the first half. Freddie George at Seymour Pierce said: "We believe that the company is well-placed to start paying dividends over the next two years, considering the strength of its balance sheet and its prospects."