FURNITURE retailer ScS Upholstery bucked the gloomy retail trend by announcing record profits and plans for further expansion yesterday.

Chief executive David Knight said the Sunderland-based firm was not being affected by the slump in consumer spending, with annual profits up from £14m to £15.7m for the year to September 30, with an additional £1.5m profit from property transactions.

Like-for-like sales for the first seven weeks of the financial year are up 14 per cent compared to last year and Mr Knight said profits are expected to keep rising to about £17.5m by September next year, with plans to open 17 new stores across the UK.

The firm's expansion plans include a store in Newcastle opening next summer. It already has ten stores in the North-East, including Durham, Darlington, Stockton and Middlesbrough.

"The business is in great shape and will continue to grow steadily, we will always take up opportunities if they present themselves," said Mr Knight.

"The North-East is a very strong area for us. We recently opened a site at Team Valley, in Gateshead, and relocated our Durham store. We are also opening at Silverlink, in Newcastle, next year."

Mr Knight puts the company's success during a difficult trading year down to its sole focus on sofas. "We have just one product and we focus on that."