THE two Dublin Texas Homecare stores increased their sales from £7.1 million sterling in 1994 to £7.8 million in 1995.

There was also a "significant improvement in profitability," according to Hampden Group, the Belfast parent. But profit figures have not been released. The Dublin stores account for 20 per cent of group turnover.

The group's third Dublin store will open in Santry later this month, as scheduled. A further two or three stores are planned for Dublin and Cork but the group is finding it difficult to get the right sites, said Hampden's managing director, Mr Les Armstrong.

Hampden is continuing with its plan to set up 25 Rosebys textile retail outlets. They are being set up under a franchise agreement with Rosebys, the British textiles retailer. A further expansion involves setting up furniture stores in a joint venture with Reid Furniture. "We should have at least one store in Dublin in 1996," Mr Armstrong said.

It has signed its first lease to trade in a 10,000sq ft premises in Bangor on the same development as Marks and Spencer. Hampden's preliminary results show a 74 per cent increase in profit before tax, from £0.88 million to £1.52 million. The growth in sales, however, was more pedestrian, at 7 per cent, from £34.29 million to £36.85 million Margins widened from 2.6 per cent to 4.1 per cent.

Sales in the Texas Homecare outlets in Northern Ireland its core business grew by 4.0 per cent from £23.4 million to £24.4 million.

The group said it is beginning to reap the benefits from the product range changes which are being introduced by Sainsbury's Homebase following a franchise agreement with that company.

This replaces the agreement with Homecharm Group and will lead to the group's Texas Homecare stores being converted to Homebase stores over the next few years.

Allied Carpets, the group's subsidiary, managed a 25.7 per cent increase in sales from £3.7 million to £4.7 million. However, intense competition put pressure on the margins. Nevertheless, the group said it continues to evaluate opportunities to expand this division.

Its joint venture with Kwik Fit Holdings more than doubled its trading profit. Hampden's share of sales grew from £1.7 million to £1.9 million. It has signed a lease for a new depot in Bangor which is scheduled to be opened in the summer. Further depots are planned.

Group earnings per share rose from 3.57p to 6.3p. A final dividend of 1.5p per share has been declared, making a total of 2p, up from 1.2p in the previous year. It, has strengthened its already strong financial position with an increase in net cash from £1 million to £2.7 million.