Value footwear retailer Brantano remains “confident” on the outlook despite reporting a £3.7m pre-tax loss in 2011 against a profit the previous year.

The 145-store retailer made £920,000 pre-tax profit in 2010.

Brantano’s turnover fell from £105m to £97m in the year to December 31, 2011.

In documents filed at Companies House, the director’s report said: “While 2011 was a difficult year due to the current economic climate, average stock levels and working capital are in line with target.

“Although the market remains challenging, the business is moving forward positively. The store expansion programme is continuing in 2012 and the directors are confident that the business is well positioned to take advantage of any improvement in the trading climate.”

The number of staff employed fell slightly, from 815 in 2010 to 803 in 2011.