Luxury accessories retailer OrotonGroup is preparing to embark on a year of transition after posting a flat profit for 2011/12 and breaking ties with American fashion house Ralph Lauren.

Oroton disappointed investors with news in August that its long-running licence deal to sell Ralph Lauren goods in Australia will expire in 2013.

Releasing its latest profit results on Thursday, Oroton said its new financial year would be one of transition following the loss of the Ralph Lauren business, which makes up 45 per cent of the group’s sales, half its assets and more than a third of its net profit.

Potential strategic options for Oroton include acquisitions, partnerships, licence agreements and capital management activities.

“With the expiration of the Ralph Lauren license on 30 June 2013 we expect some level of cost reductions and improvements in cash flow this year,” chief executive Sally Macdonald said.

“Negotiations to ensure a smooth transition are continuing with Ralph Lauren Corporation.

“Market conditions remain tough and we approach FY13 with caution.”

Oroton’s net profit rose by just half a per cent to $24.9 million in the year to July 28, from $24.8 million in 2010/11.

Revenue rose to $184.7 million from $164.4 million.

Ms Macdonald said the group achieved pleasing like-for-like sales growth, stripping out the effects of newly opened and closed stores, of nine per cent during the year.

Its online sales also soared by more than 60 per cent and now account for 10 per cent of total brand sales.

“Oroton apparel and shoe categories are growing steadily and our results to date in Oroton’s Asian based stores are on track,” Ms Macdonald said.

“Our Oroton Malaysian business is now cash flow positive and we plan to open four directly-owned stores in FY13 including two Oroton stores in China, as well as pursue potential distribution partners for Oroton in other key markets.”

Oroton maintained its fully franked final dividend at 28 cents a share.

Its shares were nine cents higher at $6.79 at 1113 AEST.