Luxury furniture retailer Smallbone has posted record financial results and expects growth to continue this year.

Pre-tax profits skyrocketed 245 per cent to£2.6 million for the year to December 31, on turnover up 17 per cent to£56 million.

The retailer said that growth has continued in January and February. As at December 31, Smallbone’s group forward order book was at a record£32 million – up 14 per cent.

All of Smallbone’s brands, which include Mark Wilkinson, Smallbone and Paris Ceramics, achieved record performances.

Operating margin soared 78 per cent to 8 per cent, excluding its US showrooms.

The retailer has opened showrooms in Moscow and Dubai and signed a contract for US residential development. It will open six showrooms this year.

Executive chairman and chief executive Charles Smallbone said: “The high level of investment over the past few years is now delivering ever stronger results. We are seeing fantastic progress, growing our market share while building sales and substantially improving profits and margins.

“Our still young but growing distribution network of showrooms allows us considerable further expansion. The combination of long-established, high-quality luxury brands and our current limited distribution puts us in a unique position to build our business even in challenging times.”

Toscafield, the investment vehicle of hedge fund manager Martin Hughes, now has a stake of more than 7 per cent in the company.