Leather goods retailer Mulberry has revealed its best profits in a decade and has put it down to the company’s decision to focus on handbags and accessories.

The Bath-based firm decided to concentrate on its two core divisions after results for the first half of 2004 slumped £107,000 into the red. This year profits for the same period 2005 reached £2.2 million and sales rose by 59% to £19.1 million.

A spokesman said the company had been "stretched" since moving into clothing and fabric ranges in the late 1990s and that the "back to basics" approach had paid off with the best profits since the business listed on AIM in 1995.

Chief executive Godfrey Davis said: "We have delivered strong sales and profit growth by focusing on handbags and leather accessories."

Accessories such as its leather organisers and notepads made up 90% of group sales.

Four new shops and concessions opened last year at Heathrow Airport's Terminal One, Hong Kong, Bangkok and Kuala Lumpur and there are plans to open outlets in Taiwan and Edinburgh next year.