home furnishings and clothing retailer Laura Ashley said strong gift and fashion sales has helped double its annual profits.

The group posted a 100 per cent rise in pre-tax profits to £12.2 million for the year to January 27 - its highest level in 10 years. But the group said that a cut in promotions during the first eight weeks of the current year led to a 4.8 per cent drop in like-for-like sales.

Laura Ashley said strong demand for gifts and jewellery boxes, along with lighting and silk bedspreads had helped boost sales at its home accessories division by 15.2 per cent - up 8.2 per cent when the performance of new stores is stripped out.

Like-for-sales at the group's clothing division were up 26.4 per cent, compared to a fall of 25 per cent in the previous year.