Online sex toy retailer Lovehoney has posted a 76 per cent rise in full year pre-tax profits thanks to strong sales off the back of lucrative branded licensing deals.
In the year to March 31, the Bath-based retailer saw pre-tax profits jump to £9 million from £5.1 million a year prior, while sales rose 31 per cent to £76 million.
It has attributed its soaring profits to various licensing deals including collaborations with the Fifty Shades of Grey author EL James and heavy metal band Motorhead, alongside a new collection for the US TV show Broad City created in conjunction with Comedy Central.
Despite this boosting its US sales, the UK was still Lovehoney’s key market, seeing a 16 per cent sales boost to £50 million.
Its European turnover also jumped 51 per cent to £6.4 million while sales for the rest of the world jumped 71 per cent to £19.8 million.
“It’s wonderful to be celebrating our 15th birthday with record sales and profits and the royal seal of approval,” co-founder Neal Slateford said.
“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 rock bands, Fifty Shades and a TV show in Broad City which really speaks to millennials.
“Three-quarters of the trading year followed the Brexit vote and we have not found the political uncertainty has impacted on sales.”