Department store Harvey Nichols has recorded an increase of more than 14 per cent in after-tax profits in its latest company accounts.

The chain’s parent company, Broad Gain (UK), operates seven stores in the UK, one in Ireland at Dundrum Town Centre, an online store based in England, and seven international licensed stores. In addition, it operates a stand- alone restaurant in central London.

In its accounts for the 52-week period ending March 29th, 2014, the group records a 3.2 per cent increase in turnover on the previous year when it was £187,663,000.

The company said the results represented “a positive trading performance” for 2013/14, achieved against a continuing backdrop of a “weak economy”.

Gross margin was 56.5 per cent, down from 57.7 per cent in 2013, which was attributed to an increase in promotional activities.

Operating costs

The group’s operating profit before exceptional items was £19,871,000, down 5.7 per cent from 21,082,000.

In a note, it said this was due to an increase in operating costs due to the inclusion of a full year of costs for the Liverpool Beauty Bazaar store, as well as additional costs to support the growth in the group’s online business.

Group profit after tax was £11,297,000, up 14.4 per cent from £9,873,000 the year before. Earnings before interest, tax, depreciation and amortisation excluding exceptional items were down 2.9 per cent to £25,465,000 from £26,231,000.

Capital investment was down 32.3 per cent to £4,999,000 from £7,387,000 the year before.

In their report, the directors recommended a dividend not be paid.

In terms of future prospects, they said the business environment “continues to be uncertain” but that they “remain confident” the board will be able to “respond to the changing economic conditions”.

They added that the group will maintain its current level of performance.