Laura Ashley makes come-back

Fashion and furniture group Laura Ashley enjoyed a strong recovery in the year ended 27 January, posting its best results in ten years. Group pre-tax profits doubled from £6.1 million to £12.2 million on sales up 6.6 percent to £225 million. The group, which is best known for its floral print furnishings and fashions, has enjoyed a turnaround since Lilian Tan became its chief executive in January 2005. She subjected the struggling retailer to extensive cost cutting initiatives, including moving some stores to cheaper locations, and a drive to improve its fashion division. Her work has paid dividends, as the group saw demand for room fragrances, decorative accessories and particularly women's wear grow.

Women's wear fashion sales increased almost 26 percent, demonstrating the increased pull of the brand. Franchise holder Rob Stolwerk attributed the rise in sales to an improvement in quality and colour palet. "The new design team has returned to the brand's old-fashioned sense of quality, while introducing new colours and looks to attract a new clientele." The vintage-style cotton wrap dresses have been a hit with UK shoppers.

Furniture sales only rose 3 percent, with larger pieces selling less well than home accessories and decoration, which rose 15.2 percent and 12 percent respectively. Together they represent 53 percent of total sales, while furniture sales account for 29 percent of total UK revenue. Shares rose 5 percent as a result of the good news. Since Tan joined the firm as chief executive - she was the group's eleventh chief executive in 14 years - shares have more than doubled. The market capitalization of the group is currently about £215.2 million.