However, profit before tax was£5.8 million, compared with£6.3 million last year.
The retailer was acquired by Baugur for£120 million in June. Last week, Baugur president and chief executive Jón Ásgeir Jóhannesson said Mosaic, the fashion division that includes Karen Millen, Oasis and other brands, was ' a prime candidate for flotation'.
The group is understood to be working on a timeframe of 18 months for a possible IPO of Mosaic.
No comments yet