Writing in the latest accounts for the Glasgow-based company, directors said Cruise planned to beef up its presence in England with new stores in Bristol and Leicester despite predictions that retailers are in for an especially torrid time south of the border.

Against the backdrop of a sharp slowdown in the formerly red-hot housing market in the south of England, retailers have complained that it has been getting increasingly hard to get consumers to part with their cash. Discounters like the Aldi and Lidl grocery operations have benefited from people moving downmarket in an attempt to save cash.

However, the move into Bristol will take Cruise further south than it has been before. The company's 18-strong store portfolio currently stretches from Aberdeen to Birmingham.

The company, which focuses on selling high-end clothes produced by the likes of Dolce & Gabbana, appears to be benefiting from a trend that has seen niche operators that cater for the affluent continuing to do well.

In the accounts for the period ended February 2, filed at Companies House and obtained by The Herald, directors said: "Early trading for 2008 is extremely encouraging with the first three months' results ahead of budget and with positive like-for-like growth in mature stores."

Cruise recently moved into Northern Ireland by opening two outlets in Belfast.

"Despite a difficult environment, we are confident that 2008 will be a successful year for the company," said the directors.

The continued expansion follows a year in which Cruise remained firmly in the black after opening and acquiring stores in a difficult retail climate.

In the period from January 28, 2007, to February 2, 2008, Cruise made pre-tax profits of £348,119, compared with £528,147 in the preceding period. This ran from March 2006 to January 27, 2007.

Helped by the opening of Cruise stores in Chester and Aberdeen and the acquisition of seven stores owned by Limeys in the English Midlands, turnover increased to £26.7m from £19.1m.

The directors said many competitors resorted to "deep and prolonged discounting", particularly in the run-up to Christmas, but Cruise had resisted the temptation to follow suit. "Whilst retailers around us bought sales through discounting, we were prepared to sacrifice short-term gains to maintain our long-term position as the country's most influential independent retailer of premium brands."

While admitting that it impacted on sales, directors said the strategy helped cement relations with brand partners.

The accounts show Cruise managed to maintain margins. It achieved gross profits of £11.2m in the latest period, representing 42% of sales. In the prior period the company made gross profits of £8.2m, representing 43% of sales.

The results will probably make happy reading for Arev, the investment firm established by former Baugur UK chief Jon Scheving Thorsteinsson, which backed a £7m buy-out of Cruise in October 2006 from Colin Gibson.

The buy-out was led by John Heath, the former chief executive of branded fashion chain USC, which is now owned by Sir Tom Hunter.

At the time Heath was reported as saying he wanted to expand the then nine-strong chain by 10 more stores over the next few years, taking the business beyond its northern heartland.

Heath's former joint USC chief executive, Stephen Craig, also invested in the business and became a director.

Arev backed the Cruise acquisition through Kcaj, a private equity investment business which has interests in a range of ventures, including Hardy Amies, the designer brand, Duchamp, the luxury men's accessories brand, and Linen & Things, a US retailer.