Solomon Lew’s Premier Investments has lifted its underlying profit 10 per cent and expects further growth as it continues to roll out its successful Smiggle and Peter Alexander stores.

The retail group made an underlying profit of $106 million for the year to July 26, up from $96.1 million a year ago.

But net profit fell more than 58 per cent to $73 million, due to the previous $105 million reclassification of its stake in kitchen appliance maker Breville.

Lew said the performance of Premier’s core brands like Just Jeans was improving, while the continued rollout of stationary chain Smiggle and sleepwear business Peter Alexander would help drive growth.

“Premier will continue to deliver sustainable long term growth for shareholders by both optimising the value of our core retail brands and by unlocking the value of our uniquely-positioned growth brands, Smiggle and Peter Alexander,” he said.

Smiggle grew sales more than 17 per cent during the year, helped by its move into the UK market, where it has opened eight stores since February.

The company expects to open a further 10 stores in the UK before Christmas.

Peter Alexander lifted sales more than 21 per cent, with eight new standalone stores and nine concession stores opened during the year.

Meanwhile, the company’s core brands lifted like for like sales during the year, with Just Jeans lifting total sales 7.8 per cent in the second half.

Premier will pay a final, fully-franked, dividend of 20 cents per share, taking the full year dividend to 40 cents, up from 38 cents a year ago.

AAP