House of Fraser sales near £1bn

PROFITS at department stores group House of Fraser surged by 44% over the past year and the cracking pace shows no sign of letting up. Excluding exceptionals, profits for the year to 26 January soared from £17.8m to £25.6m pre-tax, as total sales advanced by 12.9%, reflecting the group's active store opening programme and taking them close to the £1bn mark, at £956.7m.

Chief executive John Coleman said he looked forward 'with considerable confidence to another period of strong trading'.

There is again no change in the dividend total - it has remained at 5.5p since the group floated on the stock market in 1994. Finance director David Adams said the group has been working towards getting its dividend cover to comfortable levels. It rose to 1.3 times last year, up from 0.9 the previous year.

Underlying sales last year grew by 5.7%, and growth has accelerated to 6.2% over the first eight weeks of the current year.

Coleman said House of Fraser is now 'very firmly established as Britain's leading retailer of designer brands'. There are currently 51 stores in its chain and additions in the pipeline include King William Street in the City, due to open next year. Six new stores have been signed up and a further three are under discussion.

HoF continues to add new brands to its designer ranges and new names last year included Elle Macpherson lingerie and Lambretta in menswear. In home products, Calvin Klein Home and Aga Home were introduced.