The UK clothes and furniture retailer Laura Ashley has reported flat profits due to tough trading conditions.

"Laura Ashley performed resiliently in a particularly difficult trading environment," chief executive KC Ng said.

A fall in the number of tourists visiting London and other UK cities, as well as the global economic uncertainties hit Laura Ashley's performance.

Pre-tax profits rose slightly to �8.6m for the year to January 26 from �8.4m a year earlier.

The result was in line with an �8.5m analysts' prediction.

So far since January, sales in existing shops have risen 13%.

Suffering fashion

Laura Ashley's fashion sales, which account for about a third of the group's turnover, rose just 1% during the year to January.

And since then, it has slipped 5%.

The group blamed its decision to reduce stock levels in the wake of 11 September, adding that it had been "overly cautious".

Shares in the group fell 15% to 19.25p in early trading.