Hamleys has seen its total sales increase to £60 million for the full year to March 27th 2010.
On top of this, like for like sales grew by 5.1 per cent.
Cost reduction measures and a restructuring of the balance sheet to reduce debt levels also helped Hamleys to profit before tax for continuing operations of £0.1 million. This is compared with a loss of £4.1 million last year.
Sales have increased due to growth from the London flagship store in Regent Street, the launch of new outlet in Glasgow, the annualisation of the Dublin store and the early stage success of the international roll out of franchise stores.
"Hamleys has a strong brand identity and we are building its reputation internationally for providing a retail experience for both children and adults in a unique and magical environment," said Gudjon Reynisson, CEO of Hamleys. "We plan to capitalise upon this by expanding and developing our franchises into new markets with strong retail partners.
"We are confident that the business is now positioned for the next phase of its development."
The next stage of the company's growth will be focused on further sales improvement in the London, Glasgow and Dublin outlets, plus an acceleration in the franchise store opening programme.
In March and April this year, the second store in Dubai and the first shop in Mumbai, India were opened. Performance in both outlets has been above expectations. Further franchise stores are planned for the current year.
Current trading at Hamleys for the 14 weeks ending July 3rd increased by four per cent on a like for like basis.