Stefano Pessina and private equity firm Kohlberg Kravis Roberts paid £11billion for the stock market listed group last year in Europe’s biggest buyout, raising concerns it would be saddled with huge debts.

In its first results since, total group annual sales rose 4.8 per cent to £15.3billion and trading profits a fifth to £771million.

Net borrowing was £8.7billion, resulting in an annual interest bill of £853million, leaving a £64million pre-tax loss.

But Alliance Boots insis­ted it was confident of its financial position and ability to service its debts.

Pessina, who led Alliance UniChem which merged with Boots in 2006, said: “It demonstrates how strongly the company is performing under private ownership.

“I have confirmation of what I was thinking 18 months ago, that this company has fantastic potential and we weren’t exploiting that potential. Now we are free to do so.”

Strong demand for own-brand No7 beauty products helped lift sales and profits.

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