MACKAYS Stores Group, the Scottish clothing retailer behind the M&Co brand, raised pre-tax profits in its last financial year as its annual turnover moved further above the £200 million mark.

The latest accounts of the Renfrewshire-based company, which employs around 900 of its 3,400-strong UK workforce in Scotland, show pre-tax profits rose to £3.64m in the year to Feburary 23 from £3.32m in the prior 12 months. Mackays Stores Group, which is 95 per cent-owned by the McGeoch family with the remainder of the equity held in a share ownership scheme for long-serving employees, achieved a rise in turnover from £200.6m to £211.4m.

The company, which recorded flat operating profits of £6m, has 272 stores in the UK, including 59 in Scotland. It has 20 outlets overseas, with stores in the United Arab Emirates, Kuwait, Bahrain, Saudi Arabia, Jordan and Malta.

A spokesman for Mackays Stores Group, which has its head office at Inchinnan, said 18 stores had been opened and four “non-profitable” outlets had been closed during the year to February.

The company said that an ongoing programme of new store acquisition, refurbishment of existing outlets, investment in “leading-edge technology” and national advertising campaigns had delivered year-on-year sales growth for the last four years.

Chief executive Andy McGeoch said: “Undoubtedly the high street environment remains challenging, with high business rates, cost inflation, heavy discounting, economic uncertainty and international currency fluctuations collectively putting pressure on margins.”

Mr McGeoch cited like-for-like increases in sales across the company’s retail store and online channels.

He believes M&Co is “ideally positioned to capitalise on the growth of its key target demographic, identified as the fashion conscious 40-plus woman shopping for both herself and her family”.