LDC, the private equity arm of part government-owned Lloyds Banking Group, has defended its decision to more than double staff salaries in 2010, a year in which its profits increased by £64m.

LDC, the owner of Antler luggage and retailer Mountain Warehouse, posted a pre-tax profit of £73.6m in 2010, a marked increase from 2009 when the company reported profits of £9.2m, according to its 2010 report released over the weekend.