Laura Ashley: 2000

Pre-tax profit �10.2m Turnover �259.1m No dividend

"This year has been an important for the group as we have now returned to profitability and have put in place a platform for future development," said chief executive KC Ng.

He said Laura Ashley had continued to refurbish stores, simplify management structures and reduce costs.

"The year has started well with total sales up 8% and like-for-like sales up 14% in the first nine weeks.

"We remain cautiously optimistic that we can continue to deliver a solid performance as the year progresses."

Management upheavals

Mr Ng said customers' response to the spring range had been "very encouraging" with jewellery, shoes and handbags selling well.

He said like-for-like sales of home furnishings were up 20% this year, outperforming the market.

Investors responded positively to the results announcement.

Laura Ashley shares were 2% higher at 22.75 pence in mid-morning trade.

Revamp

Laura Ashley returned to profit on a quarterly basis last September, after being plagued for several years by management upheavals and problems with sales.

About two years ago, when Mr Ng took over, the company was on the verge of collapse.

The subsequent rescue plan included a revamping of the chain's image: The home furnishings division was expanded while the trademark frilly, flowery dresses took a back seat.

Plans announced last year included the opening of 100 dedicated home furnishings stores, four of which are now open.

Home furnishings departments in 31 Homebase stores were closed.

Online shopping deferred

Laura Ashley said it expects to finish its store refurbishment programme by the end of 2002.

In 2001, the chain will open six new stores in Germany.

Launch of an online shopping service - due for last year - has been deferred, Laura Ashley said on Tuesday.

Laura Ashley was founded in the 1950s by Laura and her husband Bernard Ashley.

The company is now 40% owned by Malayan United Industries.