JD SPORTS Fashion has warned it does not expect the Tiso Group chain to return a profit this year.

However Tiso, which JD snapped up a 60 per cent stake in during November last year, was said to have been performing better in recent months.

The Tiso family still retain a holding in the business with Chris Tiso and his management team continuing to run it.

JD, which also owns Blacks, Millets, Scotts and Bank, said: "The acquisition of Tiso has given us access to a number of new brands which were not previously available to the Blacks and Millets fascias and it is important that we continue to nurture these relationships. Tiso continues to trade with independent management and systems and its recent results are improving although the business is not expected to be profitable this year."

Stock market-listed JD, upped its annual profit forecast yesterday after unveiling a strong set of interim results.

As part of that announcement to the stock exchange JD confirmed it had paid £2 million for its stake in Tiso, which also includes the Alpine Bikes, George Fisher and Blues ski brand, while also advancing £5.34m to allow the outdoors chain to settle part of its debts.

Tiso continues to trade from 17 stores with a footprint of 101,000 square feet according to data from JD. That compares to 80 Millets store with 143,000 square feet and 76 Blacks sites covering 287,000 square feet.

JD saw its total revenue rise 27 per cent from £567.4m to a record £721.5m in the 26 weeks to August 2 led by a strong performance at its core sports brands in the UK and abroad.

Group revenue in the UK was up from £466.7m to £575.3m, Europe rose from £94.4m to more than £137m with sales into the rest of the world growing from £6.3m to £9.1m. Underlying profit before tax doubled from £10m to £20m in the period.

Operating profit in the sport business grew from £26.1m to £34.8m with the group particularly pleased with its growing presence in Europe.

The outdoor division, which bought Blacks and Millets out of administration in 2012, was said to have seen a 12 per cent rise in like-for-like revenue and narrowed operating losses from £8.9m to £5.6m. Tiso made a small loss which was in line with expectations.

However the fashion arm saw its losses widen from £6.8m to £8.2m. Scotts was said to have performed well although Bank continues to struggle.

JD's executive chairman Peter Cowgill said the group was well placed to deliver results towards the upper end of current market expectations.

He said; "The Group has delivered record results for the first half with encouraging progress in the principal areas of the business, notably our UK and European sports fascias."

Kate Calvert, a retail analyst at Investec Securities, said: "Good numbers were expected following its first quarter trading update, but a 100 per cent increase in half-year results has exceeded expectations.

"This has been driven by sports, which has had another strong footwear performance, and progress in Europe." The results show JD paid £10.8m to buy an 80 per cent niche in online fashion retailer Mainline Menswear in March as well as £851,000 for outdoor retailer Oswald Bailey in the same month.

In February this year it paid a sum of £835,000 for Ultimate Outdoors.