CHRISTMAS profits at department store group Debenhams improved for the second year in a row.

And the chain declared itself “very pleased” with its Liverpool One store, which is now trading in the top 10 of its 144 locations.

Debenhams said the 0.1% improvement in like-for-like sales for the 18 weeks to January 2 was in line with internal forecasts.

Chief executive Rob Templeman said: “Our continued focus on cash margin means that, for the second year in succession, we have delivered an increase in profit before tax over the Christmas trading period.”

Debenhams also said it would step up its store refit programme in the wake of a successful refurbishment project at its Cardiff store.

It put the scheme on hold last year with 42 of its portfolio awaiting refurbishment.

And the retailer continues its battle to emerge from the shadow of the £1bn-plus debts taken on by its former private equity owners.

It did not provide an update on its current debt position, but a recent share issue helped cut net debt by £403.7m, to £590.3m.