Shares in Burberry were down on the FTSE 100 in morning trading as profit taking followed a strong set of results in the full year ended 31 March.

Revenue in the period rose 27 per cent to £1.5 billion while adjusted pre-tax profit soared 39 per cent to £298 million.

Retail revenue increased 36 per cent, while non-apparel revenue rose 35 per cent.

Net cash at the end of the period was reported as being £298 million, despite the group spending £52 million on China acquisitions.

The group said it would be raising its full year dividend 43 per cent to 20.0 pence per share.

In the coming year Burberry said it planned to raise capital expenditure from £108 million to £180 million to £200 million. The group also said it was planning 15-20 major renovations.

Angela Ahrendts, Chief Executive Officer of Burberry, said, "Burberry delivered strong operational and financial progress during the year, thanks to the consistent execution of our core strategies by our team and partners, more closely connecting our brand vision and values to consumers around the world. While mindful of global macro challenges in the current year, we will continue to invest to drive growth across our portfolio by channel, region and product."

Richard Hunter, Head of UK Equities at Hargreaves Lansdown Stockbrokers, commented, "The shares have inevitably succumbed to some profit taking, despite having posted a strong set of numbers as trailed in its trading update last month.

"The bottom line was boosted in particular by strong Chinese tourist demand in Europe, and was also underpinned by non-apparel and wholesale contributions. This success has enabled Burberry significantly to hike its dividend, signalling confidence in future prospects - confidence which is further evidenced by the planned expansion of retail selling space, with a particular focus on stronger emerging markets. On the downside, this very expansion will pinch profit margins over the coming year, whilst the company remains exposed to changes in demand for luxury goods, which in turn is connected to general global economic health. In addition, the group has a high exposure to clothing for a luxury provider, which could bring some concerns as fashion trends change.

"Nonetheless, for the moment Burberry remains a rare and notable example of a retailer enjoying a stellar growth trajectory. Indeed, this success story is held back only by valuation concerns - the shares have risen 116% over the last year, as compared to a 17% gain in the same period for the wider FTSE100. As such, the market consensus is that Burberry remains a hold, albeit a strong one."

By 09:00 shares in Burberry were down 1.97 per cent on the FTSE 100 to 1,294.00 pence per share.

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