Aspinal of London's sales surge boosts bid hopes

Handbag brand Aspinal of London on Friday showed why foreign buyers are eyeing a takeover, as sales surged 27%.

The luxury leather goods brand, which counts the Duchess of Cambridge as a fan, said turnover reached £23.7 million in the year to March 31, boosted by strong online and wholesale growth.

But investments in new stores, including at the Royal Exchange, contributed to losses widening to almost £2.3 million from £1.5 million a year earlier. It plans to up store numbers from 21 to 30 by March 2018.

Sales are forecast to hit £28 million this financial year, with December trading up 35%.

Advisers at PwC were hired in 2016 to explore the sale of a stake in the luxury retailer, which is valued at about £75 million. Investors from Europe and China have been linked with a purchase.

It is understood no deal has been agreed for Aspinal, which has teamed up with Downton Abbey actress Michelle Dockery for a range.