JD Sports Fashion has signalled its confidence in the prospects for Scottish outdoor chain Tiso, in spite of weaker second half trading caused by milder autumn and winter weather.

The retail giant, which holds a 60 per cent stake in the independently managed chain, issued the vote of confidence in the 17-strong Tiso chain as it posted an 18 per cent hike in pre-tax profits to £90.5 million.

Shares in JD surged by nearly six per cent as investors warmed to the results, driven by a forecast-beating performance by its 660-store sports fashion division.

Revenue from recurring operations increased by 25 per cent to £1.5bn for the 52 weeks ended January 31, while profits before tax and exceptional items rose by 22 per cent - exceeding £100m for the first time.

JD, which offloaded the loss-making Bank Fashion chain in November, reduced operating losses in its 184-store outdoor division by £3.1m to £4.9m.

The company admitted that milder weather had affected sales of brands such as Blacks, Millets and Tiso, which caters for climbers, cyclists, hill walkers and skiers under its Tiso, Alpine Bikes, Blues the Ski Shop and George Fisher shops. And it confirmed promotional activity was continuing in its outdoor stores to address the "resulting imbalance of stocks".

However, it reinforced its confidence in the Tiso chain, which was founded by Graham Tiso in 1962 and is today under the leadership of his son, Chris Tiso.

JD paid £2m to acquire its majority stake in Tiso in 2013 and advanced a further £5.34m to help the Scottish chain settle debts.

Executive chairman Peter Cowgill said: "Tiso (incorporating George Fisher), in its first full year in the Group, has enabled us to enhance our relationship with several key brands and has given us significantly better geographical coverage in Scotland.

"The business, which continues to trade with independent management systems, has suffered the same trading issues in the second half as Blacks and Millets although we remain confident about its longer term prospects."

JD hailed an "exceptional performance" by its sports fashion business in the year.

The division saw like for like sales growth of 13 per cent across its combined European fascias, with operating profits soaring by 18 per cent to £107m.

Mr Cowgill noted "positive momentum" in each of its markets, "driven by a buoyant market for branded athletic footwear across Western Europe and an excellent buying and merchandising performance."

The company expanded its presence to 70 stores in Europe following the opening of 19 stores during the year. Mr Cowgill noted that it has been encouraged by the performance of Sprinter in Spain and Chausport in France and added: "In so far as this progress continues, we anticipate further growth in overseas markets."

Kate Calvert at Investec said the company's profits had come in nearly six per cent above its forecast, noting that it had been "driven by an outstanding sports performance both within the UK and Europe."

Ms Calvert added: "This more than offset a challenging H2 for outdoor from the well-documented warm autumn".

Investec said it has lifted its full-year profit forecast for the current year by 9.5 per cent in light of the results and stronger momentum in Europe than it had anticipated.

It added the current share price does not reflect the growth potential for the firm in the UK and Europe. The broker lifted its target price to 680p from 610p as it gave the stock a buy rating.

JD announced a total dividend of 7.05p per ordinary share, up from 6.775p last year.

Shares closed up 29.5p, or 5.79 per cent, at 539p.