The fashion designer Mr Paul Costelloe has predicted his business will make a profit over the next 12 months after the chief executive of the division, Mr Ian Herbert, had his employment terminated by the parent company, Silk Industries. Mr Costelloe said he would be playing a greater role in the division as design director after a restructuring which had moved "a little too fast", following the acquisition of the business by Silk for £1.25 million last year.

Interim results this week showed that the business, United Fashions, made a loss of £202,000 sterling, which was put down to a disruption in production schedules and late distribution of the current autumn/winter collection.

Mr Costelloe added that the traditional elements of the business - soft tailoring, feminine clothing and quality of manufacture - had been compromised in the 15 months since the acquisition. "We are naturally looking to broaden our base but we did not want to throw the baby out with the bathwater".

He hoped to be more influential than he had been in the past six to eight months. "Maybe I am one of these impossible people. Designers are not the easiest to work with but I believe my strength is my personal approach to detail in tailored garments," he said. Mr Herbert had "put some very good things into the company", he said, and had introduced modern machinery which included computerised cutting and grading facilities. A younger team who were "relevant to keeping the collection young and dynamic" had been put in place.

"I think we are sharper and fitter definitely, we will definitely be a more successful company in the next 12 months with new and positive figures on the books."

The chairman of Silk, Mr David Tooth, said he would be taking the position of acting chief executive of the Paul Costelloe division following Mr Herbert's departure. Earlier this week, the finance director, Mr Clive Reeks, said up to £500,000 had been spent overhauling the fashion business and that order books and sales were now growing.