Mobile phones retailer Phones 4U has recorded an uplift in profits despite tough consumer conditions last year.

Phones 4U recorded a rise in pre-tax profits from £87.6m in 2010 to £113.4m in the year to December 31, 2011.

Sales rose from £746.2m in 2010 to £773.3m in 2011 driven by sales of high value smartphones.

The company increased its store numbers during the year from 502 to 586 including 42 concessions.

Phones 4U said it was “confident” performance in 2012 would be strong and last month the company broke its record level of pre-orders ahead of the release of the iPhone 5.

Operating profit fell from £79.6m in 2010 to £57.2m in 2011, due to lower gross margin and increased operating costs within the company.

The company said: “We will continue to look to take share in our core markets and segments and expand our work with partners in complementary segments. Our range of categories will continue to develop as we remain the leading destination for the youth market in mobile solutions.”

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