DEPARTMENT store group Debenhams is keeping pace with its rivals on the high street as profits surged 14 per cent.

The retailer, which confirmed plans to create 1,000 jobs this year at four new stores in Basingstoke, Redditch, East Kilbride and Inverness, said sales were continuing to grow despite a more competitive environment.

Total sales in the six months to March 2 were up 8.1 per cent at £937.9m while like-for-like growth was 5.1 per cent.

With margins also nudging ahead, pre-tax profits rose to £92.1m, at the top end of City expectations and up from £80.8m a year ago.

Analysts had voiced fears that Debenhams, which has stores in Middlesbrough and Sunderland, could buckle under the challenge from a resurgent Marks & Spencer