UK furniture group MFI has bucked the retail trend with a 55% increase in pre-tax profits.

The group, which is attempting to shake-off its downmarket 'flat pack' image, put much of the success down to redesigned kitchen and bathroom ranges.

Two years ago the company recorded pre-tax losses of �28.4m.

MFI chief executive John Hancock said the group's performance was all the more impressive given that growth within the UK kitchen furniture market was almost static in 2000.

Style pundit

MFI's pre-tax profit for the year shot to �45.4m before exceptional items, compared with �29.2m the year before. Like-for-like sales were up 11%.

Mr Hancock said: "This is an encouraging result.

"Most importantly, we have achieved significant progress, ahead of schedule, in the revitalisation of the group."

MFI is attempting to appeal to the more style-conscious shopper and has appointed style pundit Peter York as a non-executive director.

It plans to tap into the 'metropolitan and inner city market' by opening 50 new High Street stores - as opposed to the out-of-town sites which have been the backbone of its business.

An estimated 20 city centre stores will open this year, to add to existing outlets in Clapham, Staines and Chiswick in London.

Mr Hancock said MFI would also continue to trial a new look designed by Conran Design at five furniture centres over the coming months.

Mr Hancock took the helm at MFI from John Randall in February 1999.