DEPARTMENT store group House of Fraser, which owns the Binns stores in Darlington and Middlesbrough, has cut back its losses in the first half of the year.

The company claimed that confidence on the high street had not yet been dented by the US terrorist attacks.

Chief executive, John Coleman, said: "While we cannot quantify any possible future adverse impact from recent world events, we are currently confident both of a strong outcome for the full year and that we have the base for sustained growth."

The group said like-for-like sales were running 4.7 per cent ahead in the eight weeks to Sunday, with the figure largely unaffected by the attacks.

David Adams, deputy chief executive, believed House of Fraser was less exposed than some of its rivals to demand from foreign tourists.

He said: "The first few days, there was a downturn as people watched events unfold on television.

"But we have just had a strong weekend. It may be that people will choose to stay in this country and shop rather than travel abroad."

The comments came as House of Fraser reported a "strong performance" in the six months to July 28.

Like-for-like sales rose 7.1 per cent during the half-year, with pre-tax losses narrowing from £6.6m to £4.3m.

Turnover lifted to £424.5m from £364.5m last time.

In particular, House of Fraser's designer labels proved popular as like-for-like fashion sales across the group increased eight per cent.