Winning a Queen’s Award for Enterprise and developing specially branded products have helped push up pre-tax profits at Bath-based sex toy firm Lovehoney by 76% to £9m.
Strong website growth in the UK and overseas and significant new product development also played their part, with total sales increasing by 31% to £76m in the year to March 31. 
The privately-owned firm was honoured by the Queen last year for boosting UK exports, with owners and co-founders Richard Longhurst and Neal Slateford meeting the Queen and Prince Philip at an official reception at Buckingham Palace.
Lovehoney, which was launched 15 years ago, also attributed a large part of its success to the fact that it is the world’s only sex toy retailer 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.
While the UK is still Lovehoney’s largest market – accounting for £50m of revenues – overseas growth was far stronger. UK sales increased by 16% while those in Europe rose by 51% and the rest of the world (primarily US and Australia) by 71%.
The company also said its online-only model had kept costs lower than bricks-and-mortar rivals and helped it remain price competitive in what it said was a tough retail environment.
Neal Slateford, pictured, 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 a 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 Broad City, which really speaks to millennials.”
He said the firm’s record sales over recent years – increasing from £16m five years ago to £79m – had been driven in part by the ‘Fifty Shades effect’.
Lovehoney is to launch a set of official products linked to the new Fifty Shades Freed movie, which will be in cinemas around Valentine’s Day next year.
It also appears that Britain’s planned withdrawal from the EU following the Brexit vote last year has had no impact on sales.
‘’Three-quarters of the trading year followed the Brexit vote and we have not found the political uncertainty has impacted on sales,’’ said Mr Slateford.
