SHARES at department store group Allders jumped five per cent as the company issued an optimistic outlook statement despite the retail slowdown hitting profits.

The group, which has stores in Southampton and Portsmouth, said like-for-like sales for the six months to March in its 39 stores were down 4.3 per cent - adjusting for the timing of Easter, dipping even further in the following weeks.

But chief executive Harvey Lipsith said sales this month had picked up, giving analysts hopes of better returns in the coming months.

"We have recently seen modest improvements, with sales down less than they have been," Mr Lipsith said

The group reported pre-tax profits for the six months to March 31 of £14.3 million, down from £16.9 million.

Turnover was up slightly to £290.4 million, from £287.7 million.

Mr Lipsith said: "The result was disappointing but probably at the top end of expectations.

"Even in the difficult climate, we have maintained a strong control on our cost base."

It is looking to open up more stores and continue its programme to revamp its existing shops, which has seen around half the store network updated.

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