New Look abandons Russia over fears of political uncertainty An autumn collection from retailer New Look New Look said it had pulled out of Russia and Ukraine because of political uncertainty in the region, as it announced a near doubling of first-half pre-tax profit. In August, the fashion retailer, which is owned by private equity groups Apax and Permira as well as founder Tom Singh, said it had put a planned expansion in Russia on hold because of geopolitical tensions. Some British retailers have warned that the prospect of a trade war between Britain and Russia risks damaging their sales. New Look had planned to buy back its franchise in Russia, where it has 20 stores, and then expand significantly in the country. It had already "paused" the expansion, and on Tuesday the retailer said it had "exited Russia and Ukraine given [the] political uncertainty." "All retailers are having an extremely tough time in Russia, not just in clothing," said Anders Kristiansen, chief executive of New Look. Its partner in Russia, Delta, had been under significant pressure and was closing its stores. New Look had been in talks with a new partner, but the UK retailer had decided not to proceed. However, New Look said it was making progress in its Chinese expansion. It has 14 stores in China and plans to have 20 outlets in the country by the end of this financial year. "The energy and drive we had put aside for Russia, we are now channelling into China where we are doing extremely well," said Mr Kristiansen. If that means we will not be present in the Russian market for the next one to two years, we don't really have a problem with that. It was also continuing to push ahead in Poland and Germany. The comments came as New Look said pre-tax profit, including its French business Mim, rose 89 per cent year on year to £26.1m in the six months to September 27. Mr Kristiansen said New Look had not been immune from the impact on sales of higher temperatures this autumn. However, he said the retailer had an "ever faster supply chain" and was able to buy products within rather than ahead of the season. Nevertheless, like-for-like sales from UK stores slowed from an increase of just over 8 per cent in the first quarter to a 0.5 per cent rise in the second quarter. New Look is in the process of selling Mim to a group of Asian investors and the deal is expected to be completed by the end of this calendar year. Excluding Mim, the profit increase was 30.7 per cent to £28.1m. Sales rose 4.7 per cent to £788.6m, including Mim. Sales from stores open at least a year rose 6.9 per cent, with UK like-for-like sales including those online up 8 per cent. Online sales rose 36.4 per cent. New Look said the improvement came despite the unseasonably warm weather in September, and it had also maintained its gross margin. But the group warned: "Despite some improvement in consumer confidence, market conditions remain uncertain and the unseasonably warm weather in September continued through October. As a result, we remain cautious about the outlook for the remainder of the year. Discount fashion brand eyes listing Paul Mason is hoping to use his skills as a veteran retailer to eventually bring New Look to market. The former Asda chief executive who held the same position at both Somerfield and Matalan, was appointed as non-executive chairman of the discount fashion brand in September. Mr Mason, 54, He succeeded Alistair McGeorge, who left New Look earlier this year to join Woolworths Australia, after stabilising the business following a tumultuous period three years ago. New Look is owned by private equity groups Apax and Permira, as well as founder Tom Singh, who acquired it for £800m in 2004. The business came close to floating four years ago, but pulled the listing at the last moment. With a succession of retail floats earlier this year, it has long been seen as a potential candidate for an initial public offering, as its owners eye an exit. Anders Kristiansen, chief executive of New Look, said earlier this year that the retailer was not yet ready to be a public company. But he said on Tuesday: "We are in better shape today than we were six months ago. Are we totally ready for a float tomorrow? Certainly not. But I think we are making good headway in all aspects of the business. Mr Kristiansen said the retailer was doing particularly well in China, where the performance had been "stellar," and where it planned to open 30 stores next year after an initial 20 this financial year. "We are in a better position than we have ever been," said Mr Kristiansen. He added that the IPO market had stalled followed the listings earlier this year. "There needs to be an IPO market as well, and I don't think there is one," he said.