But incurs costs of £3.8m
Furnishing-to-fashion specialist Laura Ashley was awarded£3.5 million in damages and interest, plus£700,000 in royalty income, from the final tribunal in the L'Oréal arbitration case. However, Laura Ashley has incurred legal and other costs totalling£3.8 million.

The retailer's dispute with L'Oréal concerned a 20-year licence granted in 1996 by the Laura Ashley companies to L'Oréal, which was arbitrarily terminated by L'Oréal in 2002.

In October 2004, Laura Ashley announced that, after considering the parties' respective claims, the tribunal had ruled in favour of it, on the issue of liability. L'Oréal's termination of the licence was found by the tribunal to be invalid.

Alongside the news, Laura Ashley said it is pleased with its performance in the year to date. Laura Ashley posted a 13.2 per cent rise in like-for-like sales for the 26 weeks to July 29, ending its troubled period in the red.

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