The figure was down from £29 million reported last year.

But the group's chairman Brian McGowan hailed its achievements in the face of a difficult retail market.

Mr McGowan said the group had "made great strides" during "an extremely difficult year for UK retailing".

The release of full year results at the group coincided with the announcement that Mr McGowan will step down after the group's annual general meeting in June.

Robert Shrager formerly a director at Dixons was named as his successor.

Mr McGowan, who has been chairman for six years, said the group had established a clear and focused strategy which was reflected in its strong underlying performance.

The 50-strong chain of department stores includes Army & Navy, Dickins & Jones, DH Evans, Rackhams and Frasers.

While turnover fell to £797.7 million from £812 million, the group said like-for-like sales which exclude the effect of new store openings were up 0.6 per cent.

During the seven weeks since the end of January the company said retail sales had in general remained low but like-for-like sales at its stores were ahead 0.5 per cent.

Earlier this month the group also opened a new store at the Bluewater retail development in Kent, taking the group's estate to 50 stores.

Anew store is also under development in Reading and is scheduled to open in September and a store in High Wycombe in Berkshire is set to open in 2002.

Converted for the new archive on 30 June 2000. Some images and formatting may have been lost in the conversion.