Pretty in pink: Burberry's new designs

The company, best known for its trademark beige check, reported full-year pre-tax profits of �138.8m.

This compared with a �109.4m profit last year, although the 2003 figure fell to �85.1m when the costs of its market flotation were included.

Underlying sales were up 15%, and Burberry said it was upbeat about prospects for this year.

"With a favourable response to date to our autumn/winter 2004 merchandise, we look ahead to the current financial year with confidence," said chief executive Rose Marie Bravo.

Burberry has been opening new stores in Europe, the US and Asia.

Its new ranges of more colourful designs have also proved popular with shoppers, including a pink version of its classic raincoat.