Bumper sales at Ted Baker

In the six months to the end of August, UK and European retail sales rose 7.9 per cent to £74.7m - outstripping the 6.5 per cent growth in average square footage. But a similar rate of sales growth was achieved last year on a far smaller 1.7 per cent square footage increase and retail sales per square foot actually fell 2 per cent to £342. Similarly, UK wholesale sales grew 11.7 per cent to £21m - perfectly respectable, but not as impressive as last year's 26 per cent sales increase.

It was a similar story in the US, where the retail operation increased sales 53.3 per cent to $25.6m (£16m) - a slower pace than last year's 74 per cent sale hike. And while the US wholesale arm grew revenues by 37.8 per cent to $6.2m, sales there more than doubled a year earlier. Ted Baker's licence income - from partners in the Middle East, Asia and Australasia - rose 19 per cent in the period to £3.7m.

Administrative and distribution costs both increased by 17 per cent, reflecting support and expansion-related costs in the US and new international markets. Moreover, opening and refurbishing stores pushed capital expenditure up 57 per cent to £12.9m - that's expected to reach £18m for the full year. Add that to higher stock levels and net debt reached £19m, from a £1.8m net cash position at the February year-end.

Broker Espirito Santo expects full-year adjusted pre-tax profit of £30m and EPS of 50.9p, up from £27.1m and 47.1p, respectively, last year. For the 12 months to 31 January 2014, the broker is predicting adjusted pre-tax profits of £32.1m and EPS of 54.7p based on a rise in forecast revenues from £246m in the current financial year to £270m. On this basis, the full-year dividend of 23.4p increases to 25.3p in the 12 months to January 2013, rising to 27.2p in the year after.