Schuh, the Scottish footwear retailer, plans to continue expanding south of the border this year after recording strong growth in earnings and sales in the latest period, despite widespread jitters on the high street.

Schuh, the Scottish footwear retailer, plans to continue expanding south of the border this year after recording strong growth in earnings and sales in the latest period, despite widespread jitters on the high street.

The Livingston, West Lothian-headquartered retailer also wants to increase its presence in the Irish Republic, where concerns about the outlook for the Celtic tiger economy have not dimmed the appetite for its goods.

Accounts for Schuh filed at Companies House show the company reaped the rewards of an upmarket strategy that allowed it to avoid the carnage that affected rivals operating at the discount end in the year to March.

While once-mighty names such as Dolcis fell victim to the relentless encroachment of supermarkets and discount clothing chains, Schuh posted 17% growth in earnings before interest, depreciation and amortisation, to £11.7m.

Helped by the opening of four stores, including one in Glasgow, Schuh increased its estate to 50 stores in the UK and Ireland. The firm grew sales 11% to £118.5m.

In his report to the accounts, dated June 12, chairman Terry Racionzer said no-one had been immune from the pressures that affected firms in a tough year for retailers of specialist footwear.

"Reduced footfall on the one hand and the effect of widespread increases in the frequency and scope of price-led promotions continue to pose a significant challenge."

However, helped by investment in improved stock control, Schuh managed to increase product margin by 0.7%.

Schuh has used the eBay auction website to help offload stock.

Gross profits represented 15.6% of sales in the latest period, compared with 14.8% in the preceding year.

With sales and margins both up in the year to date, directors are planning to open stores in Bristol, Cambridge and west London. Noting Ireland had continued to be a buoyant market, Racionzer said Schuh was paying particular attention to boosting its presence there.

He also drew attention to the fact that Schuh had been able to refinance £35m debt used to fund a management buy-out of the firm led by managing director Colin Temple in 2004, despite turmoil in credit markets.

The refinancing will significantly reduce the cost of servicing debt.

This should help boost pre-tax profits, which increased from £6.6m to £8.3m in the latest year.

Shareholders before the buy-out included Sandy Alexander, who founded the Schuh concept, and Ashleybank Investments, owned by David Stevenson, who built up Edinburgh Woollen Mill.