New Look doubles up with £62.3m

FASHION retailer New Look staged a remarkable recovery last year, more than doubling its profits to a record £62.3m. The figures were boosted by an extra week's trading but, stripping that out, the increase is still almost 90%, at £57.7m before tax.

This tops the group's own recent forecast of £56m and sent the shares, which have virtually quadrupled in the past nine months, up 9 1/2p to match their record peak of 275p.

The recovery comes on improved margins and strong second-half sales growth, which has continued into the current year. Like-for-like sales for the nine weeks to 25 May surged 15%. 'It's been a fantastic year,' said chief executive Stephen Sunnucks. But he warned the current sales gains are unlikely to be maintained over the full year.

Price-cutting has been reduced and customers have responded well to new ranges, including one from Luella Bartley, the designer brought in as a consultant two years ago. There was a good contribution from New Look's restructured French operations, which turned in profits of £6.4m, from a £1.2m loss last time. The total dividend rises 15% to 7p a share.