Fashion group Mosaic has reported that EBITDA in its first half to July 26 rose by 6 per cent to £33.4 million to represent 8 per cent of sales.

Chief executive Derek Lovelock said the retailer was “reaping the benefits of our long-term strategy to build international brands”.

He warned however that he was “cautious of the overall UK market” for 2009 and 2010 and anticipates “a tough time ahead for UK fashion retail”.

Excluding Whistles, which was hived off from the fashion group at the end of last year, EBITDA at the Baugur-backed group rose by 8 per cent.

Total group sales remained level at£410 million, representing a 5 per cent rise excluding Whistles.

International sales grew 14 per cent to£79 million. 25 per cent of retail sales are now generated outside the UK. E-commerce sales shot up by 85 per cent to£13.6 million during the period.

Operating profit was£4.9 million lower than last year at£10.4 million and losses after tax at the group widened from£4.7 million in the first half of last year to£12.9 million.

Gross margin was 0.7 per cent higher at 62.2 per cent during the period and the group has reduced long term borrowings by£40.4 million during the period and£95 million over the last 12 months.

The retailer, whose portfolio of brands include Coast, Oasis, Karen Millen, Principles, The Shoe Studio Group and Warehouse, said that it would focus on rapid expansion in international markets and further development of its e-commerce position.

The group has 1,760 standalone stores and concessions in 44 countries worldwide.