HARVEYS Furnishing has boasted of a strong performance at its stores.

The company, which operates a major outlet at Whitebirk, said operating profits in the second half of its financial year were up 24 per cent, while in the first six weeks of the current trading period like-for-like orders were ahead two per cent.

Looking forward it said the strong housing market in the last nine months was a good indicator of likely future demand for home furnishings.

But the group fended off speculation over its talks with beds retailer Rosebys, issuing a statement saying it was "inappropriate" for it to comment at this stage.

Rosebys confirmed it was in talks to buy Harveys earlier this week, but no details have been revealed regarding the possible price of any offer.

Harveys' profits in the year to April 29 were down slightly on last year at £12.4million from £12.7million after a one-off loss on property deals.