Debenhams is confident despite wider macroeconomic concerns

The figures for the 12 months to September 2007 include a sales increase of 5.1% to reach �2.3bn.

The firm said it was confident that changes such as refitting stores would help business despite "concerns about the wider macroeconomic environment".

Debenhams' performance has been criticised since it was floated on the stock market in 2006.

In April, the department store firm issued a profit warning following poor sales, in the wake of mild winter weather.

The company's share price has fallen by more than a third since flotation although it climbed 1.7% in early trade this morning.

"Our new Autumn/Winter ranges are being well received and this, together with the refitting of stores and previous investment in a new IT platform and distribution centre, is improving the customer experience," said chief executive Rob Templeman.

Keith Bowman, analyst at Hargreaves Lansdown Stockbrokers said: "Although the jump in the company's profits may be at the lower end of expectations, news that the group has returned to positive like-for-like sales and margin growth should cheer investors".