Struggling eco-friendly cosmetics retailer Body Shop has started on the road back to recovery.

Adrian Bellamy, the chairman of the Littlehampton-based firm, said he was positive about the trading outlook for the current year despite sluggish sales in recent months.

Important reorganisation work had already been implemented which would lead to a greater efficiency across the business.

He said: "Change is never easy or quick but we are convinced the direction is right and the results will come."

Mr Bellamy took over as chairman in February after the retailer's co-founders Anita and Gordon Roddick decided to take a back seat.

Profits and sales had fallen at the group, which has operations worldwide but has lost out to rivals developing similar products to its own.

Body Shop issued three profits warnings in the 18 months before the management reshuffle which followed the collapse of takeover talks.

Mr Bellamy and chief executive Peter Saunders have been charged with turning the business around after their success in reviving its US division.

Figures released at Body Shop's annual general meeting showed sales in the first quarter to June 1 rose by three per cent worldwide.

But like-for-like sales, which strip out income from new stores, fell back one per cent with a two per cent dip recorded in the UK and Ireland.

Mr Bellamy said he expected the performance for the full year to show a modest improvement, despite significant challenges. This depended on economic recovery and the speed with which the management team could execute its recovery strategy.

Mr Bellamy wants to revamp Body Shop's marketing, improve the supply chain and information technology infra-structure and improve customer service.

A new make-up range is being introduced in August as part of a flow of new products.