Luxury boutique Liberty has reported healthy sales growth across the second half of 2004 and into 2005 According to The Retail Bulletin Sales increased by 12 per cent to £23.7m over six months to December 31. Christmas trading improved by 14 per cent, with the 'sales momentum' continuing into the New Year and turnover in February and March 2005 showing a 'healthy' increase over the previous year.

Retail Stores, which owns Liberty, is changing it name to Liberty Plc, stated sales had been led by ladies accessories, jewellery, ladieswear and menswear. The launch of a revamped fashion accessories offer and four new home departments in the autumn meant levels of activity in the store began to pick up from September and October.

Richard Balfour-Lynn, chairman, said: "Considerable progress is being made at Liberty, and the signs are encouraging. It is pleasing to see that Liberty continues to deliver sales growth as we re-establish the store as a luxury goods emporium. "Early indications are that this growth will continue for the remainder of the second half, and I am confident of reporting a healthy uplift in sales at the year end."

The company is to "remove the burden of interest charges" by repaying its £50m debts through the sale of its office building, Lasenby House, and by the sale and leaseback of the Regent House building. Plans to expand the number of Liberty branded goods sold will see the current only 10 per cent of sales accounted for by Liberty lines to increase to 25 per cent over the next five years. A fully dedicated design studio has been set up, headed by recently-appointed director of design Tamara Salman. This autumn will see the launch of a range of ladies fashion accessories, travel bags and stationery designed by the studio.

Balfour-Lynn said: "Considerable progress is being made at Liberty, and the signs are encouraging. It is pleasing to see that Liberty continues to deliver sales growth, as we re-establish the store as a luxury goods emporium. "Early indications are that this growth will continue for the remainder of the second half and I am confident of reporting a healthy uplift in sales at the year end."