FASHION house Burberry pledged to give shareholders a better return after announcing another strong set of trading figures.

The group, which is two-thirds owned by Argos-owner GUS, said it would spend about £250m on a share buy-back programme, as well as increase its interim dividend by a third to 2p a share.

Burberry announced the move as earnings before tax and exceptional items in the six months to September 30 rose by 18 per cent to £78.8m.

Revenues were £347m, up 14 per cent, although the company said the market for its stores in the UK had been subdued.

Sales from the company's 151 worldwide locations increased 12 per cent to £111m, but the bulk of its turnover is generated through wholesale business as the company sells products through department stores and speciality retailers.

Burberry said wholesale sales increased by 13 per cent to £197.2m, helped by double-digit gains for its autumn and winter range.