Bush and boot apparel group RM Williams Holdings Ltd on Thursday said it swung to a full year profit and said better times lie ahead if tourists keep on visiting Australia.

The firm posted a net profit of the year ended June 30 of A$479,000 versus a year-ago loss A$250,000 as sales climbed seven per cent year-on-year to A$56.9 million.

Chairman Ken Cowley, who has $26 million takeover bid for the group, said the 2002/03 year had presented challenges for RM Williams that included the worst drought in 100 years, the war in Iraq and the SARS crisis in Asia.

"Despite these impacts on rural communities and tourism worldwide, the company has been able to increase sales through strong marketing," he said in a statement, adding it may close its store at the UK's Bluewater shopping complex.