Fashion brand Burberry today said a strong performance by its womenswear division had contributed towards a "terrific" year for the group.

The company - famed for its beige-and-red house check - delivered results ahead of forecasts despite challenging trading conditions. Burberry also said it was confident about the new financial year after a positive response to its forthcoming winter collection.

Pre-tax profits rose to £138.8 million in the year to March 31, compared with £85.1 million last year. Turnover was £675.8 million, up from £593.6 million.

The strong performance in womenswear was led by demand for the group's pink trenchcoat, introduced last autumn in support of breast cancer research and modelled by Kate Moss.

Its new candy check print - an adaptation of the traditional beige and red check - was successfully incorporated across a range of handbags and other accessories.

Although sales in the UK were soft during the year, trends improved later in the period.

Burberry, which has 114 stores across the world as well as concessions, saw sales at its retail division increase by 13% to £257.4 million.

The group's expansion into emerging markets helped lift sales at the wholesale arm by 14% to £351.4 million, with particularly strong increases in China, as well as the US and continental Europe.

Licensing revenues rose by 15% to £67 million, driven by royalty gains in Japan and a successful performance by fragrances, including Burberry Brit.

Chairman John Peace said 2003 marked another successful year for the group.

He said: "The strength of the business in the context of this year's challenging trading environment highlights the vibrancy of the Burberry brand and talents of its management team."

Monday May 24, 2004