Pre-tax profits at Lovehoney have surged by 22% after another record year for the online retailer. The rise from £9 million to £11 million during the 2017/18 financial year was driven by strong sales globally as the firm invested in international distribution and customer service. Sales were also up 22% – increasing from £76 million to £93 million – with strong demand for Lovehoney’s own-brand products and the company defied the widely reported high street retail slump with sales up by 30.5% globally in the run-up to Christmas.
Unveiling the results up to March 31 2018, Lovehoney co-founder Richard Longhurst said: “This year has been our biggest year to date, with record sales and profit which are both up by more than a fifth. Sales growth of more than two thirds in two key territories of America and Australia reflects our focus on international expansion as a key part of our global strategy. After opening our own distribution centres in Australia and the US last year, we now are able to tailor offers and deals to meet local demand, further fuelling our international growth.”
In June, private equity firm Telemos Capital invested in the business and acquired a majority stake from Longhurst and co-founder Neal Slateford. The duo continue to lead day-to-day operations at its headquarters in Bath and Telemos’ Executive Chairman Philippe Jacobs and Chief Investment Officer Jacob Polny have joined the Lovehoney board.
