House of Fraser has said it is "confident" of meeting City forecasts for interim results after noting a 0.4 per cent rise in like-for-like sales since the end of January.

The statement came hours before bosses at the department store retailer face a dispute over pay at the company's annual meeting. Pirc, the corporate governance campaigner, has urged shareholders to block a share option scheme which could hand House of Fraser executives more than double the recommended payout.

The latest sales figure represents a slowdown from the 0.7 per cent achieved in the first seven weeks of the trading period.

However, the company said its that its margins had risen by 0.7 percentage points, adding an extra boost to profits.

John Coleman, the House of Fraser chief executive, said: "We are pleased with the current trading performance."

Cost control efforts had continued "successfully" with store openings set to boost future trade.

"The company remains positive on its prospects," Mr Coleman said.

House of Fraser, the UK's third largest department store group, has been the subject of continued bid speculation following the takeover of rivals Selfridges, Allders and Debenhams.

Baugur, the Iceland-based retailer, and Tom Hunter, the retail entrepreneur own large stakes in the company, Last year the House of Fraser board rejected a bid approach, priced at 85p per share, from Mr Hunter, backed by Baugur.

House of Fraser has attempted to foster growth as an independent through embracing designer brands and revamping its store portfolio, with an outlet in Croydon set to open in September and three branches planned for next year.

House of Fraser shares stood 1.5p lower at 116.5p in afternoon trade.

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