Difficult trading conditions were blamed for Laura Ashley’s annual profits being just £100,000 – with latest results suggesting this would continue into the second half of the year.

Statutory pre-tax profits fell from £6.3 million the previous year, and like-for-like sales dropped by 0.4 per cent. However, some small comfort came in the fact that the fashion and homeware retailer’s like-for-like online sales were up 4.1 per cent, now accounting for a quarter of retail revenues.

Overall UK sales fell 6.3 per cent to £236 million over the year, while the brand closed eight of its 168 UK stores. The wider group also saw a 7.2 per cent decline in sales to £257.2 million.

Results were also hit by a £4.7 million loss on the sale of a Singapore property, which was previously acquired to become Laura Ashley’s Asian headquarters.

Chairman Khoo Kay Peng said that given the softer trading environment for the year ended June 30 2018, “we are disappointed to report a fall in profits”.

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