Home shopping group N Brown has said that broader ranges and its core customer base of older consumers helped it sail through stormy conditions to increased profits.

Pre-tax profit soared 19.6 per cent toÂŁ40.8 million in the six months to August 30, when group revenue was up 12.6 per cent toÂŁ322.8 million.

Current trading was also strong, with sales climbing 11.8 per cent in the five weeks to October 4.

Chief executive Alan White said that N Brown’s continued growth was down to a variety of factors. “We are servicing older customers and have specialist product ranges so there is not a lot of choice of where else they can go,” said White.

“We also have a stronger database this year and the online situation helps.” Online continued to gain sales share, rising 45 per cent to£106 million for the period – equating to 33 per cent of total revenues.

White also said that some customers were trading up to its extended branded lines and that its average item value was up 7 per cent.

Investec analyst David Jeary said: “With internet penetration increasing and delivering a variety of operational and cost efficiencies, we would expect the group to deliver good full-year results, despite the tough environment.”

Citi analyst James Targett believes the company is also less vulnerable to bad debt. “Around 45 per cent of sales are made on credit, which is key to customer retention. N Brown’s average customer is 58, typically without a mortgage, so is less likely to default on payments,” he said.

However, he conceded bad debt could increase “as management continues to pursue younger customers who spend more online”.

N Brown said it had put a hold on spending on customer recruitment and would tighten its costs and credit policies.

White was hopeful the downturn might throw up some acquisition opportunities for N Brown in the coming months.

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