The company - best known for its floral fabrics - reported full-year profits of �3.1m against a �4.9m loss in 2003.

Like-for-like sales of home furnishings were up by 9% on the year, but clothing sales slipped 1.9%.

Laura Ashley launched a restructuring programme last year which has seen it revamp stores and sell off its loss-making European operations.

The rise in non-clothing sales was partly due to furnishings being given more store space, the company said.

It added it was confident that its new range of clothes by its new principal designer Alistair Blair would be a success.