Laura Ashley sees sales and profits tumble

Pre-tax profit fell by 72 per cent from £22.8 million to £6.3 million, although its comparable 2016 numbers ran over 74 weeks.

Like for like sales fell by 3.1 per cent, while total group sales dropped by 30 per cent to £277 million, again in part because of the much shorter trading period.

Nonetheless, the Mid Wales-founded company said it had felt the impact of a "challenging" years.

Chairman Khoo Kay Peng said: "Trading conditions have been challenging for the year ended 30 June 2017.

"The impact of weak sterling has also contributed to the overall fall in profit which the group has experienced."

The collapse in sterling following the UK's decision to quit the European Union last year has ramped up import costs for retailers, which have then passed the pain on to consumers.

Mr Khoo added: "We are focussed on addressing the challenges which our business has encountered over the past year and are confident that we are well-positioned to overcome them.

"Our online performance continues to be strong and we saw like-for-like online revenues grow by 5.6 per cent over the year."

The company, which began with Laura Ashley printing fabric at her London home, expanded after she returned to Mid Wales with her husband Bernard. It currently employs about 200 people at its factory in Newtown, where it makes paint, made-to-measure blinds and curtains, and wallpaper.

The company has shops in Shrewsbury and Telford, as well as in Newtown.

Sales in the decorating division, which includes the Mid Wales operation, for the year to June 30 were 5.9 per cent lower, with like-for-like sales down four per cent.

The company said that the division's performance had been "below expectation", but said it was "confident that our combination of heritage and contemporary classic designs have broad and enduring appeal to both our existing and new customers".

As well as tough conditions and the shorter trading period, the firm said sales were hit by the closure of 22 concessions in Homebase during the period.

However, Laura Ashley said online sales are heading in the right direction, and its international expansion into India and China is making good progress.