Formal and casual clothing firm Austin Reed has announced it has moved back into profit, partly on the back of the sale of one of its main business sites.
The company's profits stand at £2.3 million for the 28 weeks ending August 12th 2006, compared to a loss of £1.1 million 12 months previously.
Excluding the sale of the Thirsk centre, however, the group's earnings were £0.5 million.
Nick Hollingworth, Austin Reed's chief executive, explained that the purging of the group's £10.7 million net debt was indicative of the "good progress" the company had made as it continues its recovery.
"By improving our products, stores and service we have broadened our appeal to customers and increased our sales and margins. Good cash management and the sale and leaseback of our Thirsk site have eliminated debt. We have also seen an encouraging start to the second half and remain confident in our recovery strategy," he said.
Mr Hollingworth said that both the Austin Reed and Country Casual brands have experienced "strong performance" during the period, with sales up seven per cent to £30.5 million.
Takings in Austin Reed's flagship Regent Street store were revealed to have risen 13.3 per cent, largely driven by tailored men's suits and women's wear.