Childrenswear retailer Pumpkin Patch has improved its half year profit, but is still looking for a possible buyer or a funding injection.

The children's clothing specialist is saying there are clear signs that underlying business is improving.

It has posted a net profit of $749,000 compared to $106,000 over the same period last year.

Total revenue for the six months to the end of January from continuing operations was $121.9 million, compared to $119.3 million for the comparable period last year - up 2.2 percent.

The company grew its sales in Australia and New Zealand but had more difficulty overseas where sales declined 1.2 percent and is struggling under intense competition.

Chairman Peter Schuyt says it's in the company’s interests to either be acquired or to have another company invest in it.

He says the board has established a sub-committee of independent directors to evaluate proposals.

The company is forecasting an operating profit for the full year of $14 million, excluding business transformation costs, similar to last year.

Chief executive Di Humphries says the company is still looking for a possible buyer or a funding injection.

"There is an interested party, hence why the board have engaged with Goldman Sachs, but that's a board responsibility."