Mulberry bounces back in black

LUXURY goods group Mulberry has bounced back into the black for the first time in three years, reflecting its decision to concentrate on higher margin accessories such as handbags, which now account for more than 70% of sales.

The group, controlled by Singaporean tycoons Ong Beng Seng and his wife Christina, reported operating profits of £500,000 for the year to end-March, against a loss last time of £1.7m.

Dividends have yet to be restored but chairman Godfrey Davis said Mulberry has now broken the loss-making pattern of previous years.

The balance sheet has been strengthened, margins improved and there has been strong demand for its new more fashionable bags.

Like-for-like sales in its full-priced shops are ahead by 4% in the first nine weeks of the current year.