Department store group posts profits of £200,000
London department store group Liberty today reported modest pre-tax profits of£200,000 for the six months to December 2005, compared with a loss of£2.3 million for the same period the year before.

The results follow Liberty's sell-off of property worth£66.5 million last April. The proceeds were used to pay the store's debts and consequently remove the need to pay interest charges.

The retailer has vacated its Regent Street property and now operates out of its Tudor House store on London's Great Marlborough Street.

Liberty said trading was poor for the first quarter of last year, but picked up in the autumn. Sales for the six weeks to Christmas were up by 5.4 per cent.

Chairman Richard Balfour-Lynn said: 'The first half of the year has, considering last summer's difficult circumstances, been pleasing and reflects the solid foundations that have been laid for Liberty's future profitability.'

The group launched its Liberty of London luxury brand in the autumn. The move is part of a strategy to become less dependent on overseas tourists and aims to attract 'design- and fashion-conscious Londoners'.

Balfour-Lynn said: 'The success of our Liberty of London luxury brand to date gives us confidence that, over the medium-term, we can create an important London retailing landmark capable of generating profits and shareholder value, together with a globally distributed luxury brand.'

Liberty said trading for the second half of the year has been strong.

Topics