Absolutely dire news from Harvey Nicks

PATSY and Edina from Absolutely Fabulous wouldn't dream of being seen lunching anywhere else. But upmarket department store chain Harvey Nichols has recorded a less-than-fabulous set of results.

Latest accounts show that Harvey Nichols and Company, the main trading group that includes the famous Knightsbridge store, saw pre-tax profits plunge from £4.9m to £2.4m in the year to last April. This was in spite of a slight increase in turnover to £76m.

The picture was repeated at Harvey Nichols' regional stores in Edinburgh, Manchester, Birmingham and Leeds, where profits fell from £894,000 to £574,000, though sales increased from £27.5m to £42.6m.

Hong Kong-based business tycoon Dickson Poon, below, took control of the company in December 2002 and has ambitious plans to turn it into a worldwide brand.

The group is saddled with interest payments on an £80m bank loan taken on by Poon's holding company, Broad Gain, when he bought out previous shareholders.