JAEGER, the British fashion label, has declared its first profits since its takeover by Harold Tillman, the entrepreneur, and is on track for a further significant rise this financial year as it considers flotation late next year.

The figures also reveal that Belinda Earl, chief executive, owns 20 per cent of the company, which she bought when she joined it in September 2004, putting her in line for a considerable flotation windfall if her turnaround strategy proves successful.

Jaeger is in the process of a rejuventation under Ms Earl, the former chief executive of Debenhams, and Mr Tillman, who acquired it in March 2003.

Since Mr Tillman’s takeover, Jaeger has shut loss-making stores and about 25 concessions as part of a five-year plan to get the brand back into shape. Accounts filed at Companies House last week show that Jaeger achieved operating profits of £1.71 million, before one-off items, in the 53 weeks to February 26, against a loss of £3.14 million the previous year.

Sales fell to £57.6 million, down by 2.6 per cent on the previous 60-week financial year.

However, Mr Tillman said that in the ten months since its last financial year-end, the brand had raised underlying sales by 11 per cent, once the effects of new space and store closures are stripped out.

He said that the brand had experienced a “phenomenal” Christmas, partly because of its introduction of new accessories, and was likely to increase profits significantly in its year to the end of February 2006.

Jaeger has 104 stores in Britain, and is investing £1 million in revamping its flagship Regent Street store.

Mr Tillman said that a possible flotation next year was dependent on how Jaeger was progressing and stock market sentiment towards retailers.