Aurora shines bright after Icelandic chill

AURORA Fashions, the owner of fashion brands Karen Millen, Warehouse, Oasis and Coast, has revealed a move into profit after a major restructuring.

The firm reported a net operating profit of 22.6 million on global sales of 661m in the 11 months to 30 January despite "very challenging" conditions in the UK retail market.

The firm was formed in March last year to buy the store chains following the collapse of their former owner Mosaic, which was backed by Icelandic investor Baugur.

The firm incurred 57.9m in restructuring costs, including payments to former suppliers of Mosaic. The group reduced its net debt to 109m, and said it has since cancelled a further 20m credit facility.

Mike Shearwood, chief executive said: "I am delighted that the business has emerged in such great shape. We have built strong foundations for future growth and exceeded the targets set when Aurora was founded.

"We have taken huge steps to reduce debt and make us more efficient, all of which are now benefiting the business and will continue to do so in the future."