Selfridges has posted a jump in profits as its ambitious investment strategy began to bear fruit.

The iconic department store business registered an 18% uplift in operating profit to £180m in the year to January 28.

Sales advanced at a similar rate of 16% to £1.6bn during the 12-month period.

Selfridges is in the midst of a £300m capital expenditure programme as it presses ahead with plans to transform its London flagship store and enhance its digital capabilities.

The retailer said the investment plan had “helped fuel” its full-year performance through strong growth on, which sells to 130 countries.

It also opened the first phase of its new accessories hall, with the second phase due to open at the end of November.

Once complete, it will be the largest destination for luxury accessories in the world.

Selfridges is also upgrading its stores in Birmingham and Manchester, revamping the accessories, beauty and fashion departments, as well as their restaurant propositions.

Selfridges managing director Paul Kelly hailed “excellent” results, which he said were “achieved by the success of our long-term planning and implementation of an ambitious programme of capital expenditure”.

The business added it was “well-positioned” to deliver further growth in its current financial year.