DEPARTMENT store group House of Fraser is on the brink of announcing a number of new store openings.

The company, which has a store at the Gateshead MetroCentre as well as Binns outlets in Darlington and Middlesbrough, said it was in "advanced negotiations" for outlets at three or four locations as it prepares to step up its expansion programme.

House of Fraser has already announced plans to create 2,000 jobs at new sites in London, Maidstone, High Wycombe, Norwich, and Croydon.

Those five stores, to open in the next three years, will take the group's portfolio to 56.

Announcing its full-year results, House of Fraser said its performance had been clouded by the cost of major store refurbishments at Guildford and Oxford Street, London.

Pre-tax profit for the year to January 27 rose to £17.8m, compared to £17m a year earlier.

Like-for-like sales, which strip out the effect of new store openings, lifted 5.3 per cent, while gross profit margins improved 0.2 per cent.

John Coleman, chief executive, said the improvement had continued into this financial year, with sales in the first eight weeks up by 11 per cent, including by 77 per cent at its refurbished Oxford Street outlet.

He added: "We are firmly on track and remain dedicated to continuous initiatives and investment to consolidate further our position as the country's leading retailer of designer brands.

Shareholders will receive a total dividend of 5.5p, unchanged on a year earlier.