Bath-based sex toy retailer Lovehoney is predicting more international expansion next year after achieving a 68% rise in annual pre-tax profits.
The firm, which gained a Queen’s Award for International Trade earlier this year, said strong website growth in the UK and in export markets was behind the increase in pre-tax profits to £5.1m in the 12 months to March 31.
Sales were also up by 29% to £58m due to a broadening mass-market appeal for the firm’s products including own-brand lines such as its exclusive Fifty Shades Darker licensed ranges.
Privately owned Lovehoney holds the licence to make the official pleasure product merchandise for the Fifty Shades of Grey film franchise.
The firm said it was now gearing up for the busiest four months in its 14-year history ahead of the launch of the Fifty Shades Darker movie in February 2017.
As well as its own branded products, it also sells its Swoon range in Boots.
Lovehoney also increased staffing levels by 25% to 214 following investment in the Australian and American operations during the period. Recruitment has continued since – it now employs 227 people – and it is looking to fill eight vacancies to cope with demand over its key Christmas and Valentine’s Day trading periods.
It said it is on track to sell 100,000 vibrators this Christmas.
Founder-director Richard Longhurst said: “We have enjoyed another record year and we expect the new Fifty Shades Darker movie coming out in February to be a significant sales driver.
“We are the UK’s most-profitable sex toy retailer and it was great to achieve official recognition from the Queen.
“We are incredibly proud that a start-up business in the South West has risen to international prominence.
“Amid the current political climate, Lovehoney is well-positioned to continue its international expansion and we feel confident that the business will continue to thrive.”
Richard Longhurst and co-director Neal Slateford visited Buckingham Palace in July to meet the Queen, Prince Philip and other royals at an official reception for Queen’s Award winners.
Lovehoney’s latest annual report says: “The infrastructure put in place in 2015/16 is ensuring that the company is turning the strong turnover growth into strong profit and cash growth.”
Plans for the next year including using TV advertising to capitalise on the interest in sex toys sparked by Fifty Shades Darker, which is released globally around Valentine’s Day next year.
The first Fifty Shades movie was the biggest grossing adult movie of all time and the trailer for the new movie broke Star Wars: The Force Awakens’ previous record with 114m views in the first 24 hours.
The global market for ‘sexual well-being’ is estimated to be worth $8bn ($6.42bn) with predictions that this will rise to $20bn by 2025.
Pictured: Lovehoney owner-directors Richard Longhurst, left, and Neal Slateford with their Queen’s Award for International Trade
