Toy retailer Hamleys is to open seven Bear Factory shops in the UK over the next year after recording a fantastic response to the stores launched 18 months ago.

The shops, which allow customers to make their own teddy bear by choosing a bearskin and recording a message on a voicebox sewn inside, made profits of £2.9 million in the year to March 30 - its first full financial year.

Chairman Simon Burke is negotiating sites for a further seven stores in the UK in the coming year, to add to the current 22-strong chain.