THE John Lewis Partnership, whose Waitrose division has supermarkets in Salisbury and Ringwood, has announced its results for the year ended January 31, 2004.

Group sales were up eight per cent at £5.1b, exceeding £5b for the first time.

Trading profit was up ten per cent at £277m and profit before tax was up by 19 per cent to £174m.

Waitrose's sales were up 12 per cent to £2.7b and John Lewis's sales were up four per cent to £2.4b.

The partnership said these figures were achieved despite difficult trading conditions and were helped by strong on-line and catalogue sales and an excellent Christmas performance.

The group is to distribute £87m in bonuses to its partners (staff), an increase of 29 per cent and equivalent to more than six weeks' pay.

Sir Stuart Hampson, chairman of John Lewis Partnership, said: "I am delighted to report continued progress across the business in 2003.

"Despite a number of well-documented challenges to trading, particularly for department stores, we have built on the profit recovery of last year and we see plenty of scope to go on improving our business.

"If we continue with that same determination, the year ahead should see further gains."

He added that the food and home store at Salisbury enjoyed "significant further growth in sales and profit, benefiting from a trial of improved presentation of home merchandise".

He said: "Our reputation, particularly for our dealings with suppliers, was further underlined by Waitrose winning a number of awards again in 2003, including Compassionate Supermarket of the Year from Compassion in World Farming, Meat Retailer of the Year Multiple, from Meat and Poultry News, and Best Supermarket from the Which? Wine Guide."

Peter Turner, managing director of the John Lewis department store at West Quay, in Southampton, said: "It has certainly been a year of two halves.

"It was a challenging trading climate at the beginning of the year, with the imminent war on Iraq.

"However, as we approached Christmas, trade strengthened and customers seemed to appreciate the ability to meet so many of their shopping needs under one roof.

"Our decision to trade until 8pm Mondays to Fridays and until 9pm on Thursday throughout December, until Christmas Eve, was obviously welcomed.

"I am grateful to our partners for their flexibility and willingness to support our customers in this way," Mr Turner said.