Despite difficult trading

conditions Bradford footwear group Stylo plc has bounced back into profit and unveiled bold expansion plans with 100 new shops.

The Apperley Bridge company - which owns the PriceLess and Barratts high street brands - announced pre-tax profits of £4.3 million on ordinary activities and after exceptional items for the year to January 29. Last year the group posted a £5.5 million loss.

Sales for the year were up £4 million to £236.8 million. But Stylo described like for like sales as "flat". The dividend per share is up to 1.25p from 0.75p. Earnings per share are 10.46 pence compared to a 13.85p loss per share in 2004.

Despite depressed sales, group executive chairman Michael Ziff revealed that Stylo was poised to open up another 100 shops over the next two years.

"I am pleased to report a substantial improvement in the trading performance of the group, underpinned by a continuing focus on cash generation and a reduction in the operating costs of running our business," said Mr Ziff

"In common with a number of other retailers we are currently experiencing difficult trading conditions due to a downturn in the economy and lower levels of consumer spending.

"Provided that market conditions justify the investment and we can find suitable properties, the progress that has been made during the year makes us feel confident about opening up to 100 new stores over the next couple of years."

But Mr Ziff added that while he was pleased with the return to profitability he remained cautious of the future.

He said it was very difficult to predict the trading outcome for the full year ahead. Mr Ziff highlighted difficult trade across all divisions reflecting the retail sector climate but believed there were still opportunities for the business to grow and for product development.

But he said he had future concerns about the economy, which had slipped considerably in the last few months; the group's competitors, who continued to challenge their position and were becoming more numerous in the fashion middle market; concessions in Dorothy Perkins; and the management of the pension fund deficit.