In the first step of a strategic plan to develop a global presence in growth areas of the clothing market, Stirling Group Plc is to acquire the Headworx, Voodoo Dolls and V Dolls labels. These new ranges will raise the company's profile in the branded surfwear, snowboard and streetwear markets.

Stirling says it is paying £250,000 in cash on completion for Headworx, together with a further £570,000 in cash or up to 2 million fully paid ordinary shares in Stirling.

For Voodoo's goodwill, trademarks, stock in trade and certain fixtures and fittings, the company is paying £984,000 in cash on completion.

For the six months to 30 September, Stirling Group saw pre-tax profits climb 4 per cent to £2.1m from £2m in the prior period. Turnover dripped to £72.4m from 78.1m.

Chairman Robert Coe said that despite operating in "testing" market conditions, the company performed well during the first half and the business has managed to maintain operating margins.

He added that with the new acquisitions the business has a formula for building value for the future.