Business is booming post-Brexit as adult retailer Lovehoney posts record profits of £9 million
*Business is booming post-Brexit as adult retailer Lovehoney posts record profits of £9 million
*Sales are also up by 31% after the online firm was honoured by the Queen
Business is booming in the UK post-Brexit after pre-tax profits at adult retailer Lovehoney surged by 76%.
The rise from £5.1million to £9 million was due to strong website growth following the decision to leave the EU last year.
Sales were also up 31% - increasing from £58 million to £76 million - after the online firm achieved official recognition from the Queen.
Bath-based Lovehoney received the Queen's Award for Enterprise last year and owners Richard Longhurst and Neal Slateford met the Queen and Prince Philip at an official reception at Buckingham Palace.
The majority of sales came from three territories - UK (£50 million, up 16% on last year), Europe (£6.4 million, up 51%) and the rest of the world (primarily US and Australia) where sales shot up by 71% from £11.5 million to £19.8 million.
Lovehoney attributes a large part of its success to the fact that it is the only sex toy retailer in the world to develop branded licensing deals.
Ranges include collaborations with Fifty Shades of Grey author E L James, rock bands Motörhead and Mötley Crüe and a new collection developed with Comedy Central for the hit TV show Broad City which has increased sales in the US in particular.
The company said its online-only model had contributed to keeping costs to a lower level than bricks-and-mortar rivals and helped it to remain price competitive in a tough retail environment.
Unveiling the results up to March 31 2017, Slateford said: ''It's wonderful to be celebrating our 15th birthday with record sales and profits and the royal seal of approval.
"We would like to thank the Queen for recognising our achievements - that royal recognition has really helped us to grow the brand overseas. Our online-only model gives us significant advantages over more traditional rivals and will allow us to keep prices and costs low in what is a tough period for all retailers.
"We feel the pleasure product category has been fully embraced by mainstream consumers in the last five years and whole new generation of couples are making adult toys a regular part of their sexual routine.
"That sea change in attitudes is reflected in our Queen's Award and the success of branded lines with some of the world's biggest rocks bands, Fifty Shades and a TV show in Broad City which really speaks to Millennials."
Slateford said that sales had not been affected by the Brexit vote to leave the EU last June.
He said: ''Three-quarters of the trading year followed the Brexit vote and we have not found the political uncertainty has impacted on sales.''
Turnover at Lovehoney five years ago was £16 million and the record growth since then has in part been driven by the 'Fifty Shades effect'. Lovehoney is launching a new set of official products for the new Fifty Shades Freed movie which comes out around Valentine's Day next year.
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