Blacks Leisure said it had been boosted by sales over the festive period with total sales in its outdoor business up 12.9 per cent in December.
Like-for-like sales were up by 10.2 per cent.
Blacks confirmed that it is still in talks with parties – which it has not named – about a possible takeover of the company.
Chief executive Neil Gillis said: "I am pleased to announce that the Group has performed strongly during the key Christmas trading period highlighting the strength of our offering in what continues to be a challenging retail market.
"The turnaround programme remains on track and we enter the New Year in a positive financial position and focussed on continuing to deliver the benefits of the turnaround strategy.
"The store opening programme has performed well this year and we are due to continue this with a further new store in February 2011 and additional opportunities in the pipeline for our new financial year beginning in March 2011."