Fashion retailer Arcadia showed its turnaround strategy was paying off as it announced a 59.5 per cent rise in its profits.

The Burtons-to-Dorothy Perkins group said sales were continuing to soar, despite fears of an imminent slowdown in the high street spending boom.

Arcadia, which pulled out of takeover talks earlier this year, has focused on its key brands in a bid to revive its fortunes.

Brands such as Warehouse, Principles and Racing Green were sold off and under-performing shops shut to improve the cost base.

The group said sales and margins at each of its brands, which also include Wallis, Miss Selfridge, Evans and Topshop/Topman, were on the up.

Like-for-like sales, which exclude new stores, surged 9.4 per cent in the six months to February 23 as turnover rose four per cent to £1bn.

The growth lifted pre-tax profits to £57.9m before one-off costs, compared with £36.3m last year.

Finance director Nigel Hall said: "We believe we can deliver sustainable growth in the future."