British healthcare group Alliance Boots expects to deliver strong full-year results boosted by market share gains in its retail business and strong growth in wholesale.

The group, taken private in 2007 in what at the time was Europe's biggest leveraged buyout, said revenues rose 6.6 per cent at constant exchange rates to £8.9 billion in the six months ended September 30th.

The announcement comes despite lower sales in its Boots stores in Ireland and Thailand.

"While government and consumer spending is under renewed pressure, we expect to deliver strong results for the full year," it said in a statement, without elaborating.

Britain's retailers are worried that tax hikes and public spending cuts aimed at reducing government debt could hit consumer spending next year.

Alliance Boots, which was bought for £11 billion by private equity firm KKR and executive chairman Stefano Pessina, said first-half sales in Britain at Boots stores open at least a year rose 1.8 per cent, including VAT sales tax, boosted by demand for cosmetics and fragrances.

Underlying sales at Boots stores outside Britain, however, fell 1.8 percent, dragged down by weakness in Ireland and civil unrest in Thailand from March to May.

Wholesales revenues rose 8.7 per cent at constant currencies.

Alliance Boots said it had reduced net borrowings, without giving a figure, with strong cash generation and low interest rates helping to offset the cost of acquisitions.

In July, the group bought a controlling interest in Turkish drugs wholesaler Hedef Alliance to boost, while in October it announced plans to take control of German wholesaler ANZAG.

Reuters