For the 23 weeks to 6 January, like-for-like sales were 12% improved on the year before.

We are not frilly or flowery any more

Spokeswoman, Laura Ashley

The growth in sales is especially pleasing for the retailer, as it has said that its performance in the second half of 1999 would be hard to beat because of the boost in demand in the pre-Millennium period from people wanting to refit their homes.

"We are pleased with these trading results which demonstrate that we are making good progress towards revitalising the business," group chief executive Kwan Cheong Ng said.

"We remain confident about achieving a satisfactory outcome for the full year."

Return to profit

In September, Laura Ashley said it had returned to profit for the first time in three years, after being plagued by management upheavals and problems with sales.

The company has also revamped its image. "We are not frilly or flowery any more," a spokeswoman from the company had said.

It also said it would concentrate on its home furnishings range, opening 100 dedicated stores and closing its 36 home furnishings departments in Homebase stores.

There are currently 205 Laura Ashley stores in the UK and another 64 in Europe, with more to open too, especially in Germany and France.

However the company said it would close four administrative offices in Europe and shift operations to London and North Wales in a move expected to produce cost savings of �1m a year.

The company, which is 40% owned by Malayan United Industries, had reported pre-tax earnings of �1.7m for the first half of 2000.

Last year, it launched an online shopping service.

Shares in Laura Ashley remained steady, ending the day 0.75p down at 17.25p.