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Bath-based adult retailer announces surge in profits post-Brexit

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Written by: The Business | Posted 07 November 2017 16:51

Bath-based adult retailer announces surge in profits post-Brexit

An online adult retailer has enjoyed a boom in business post-Brexit, announcing a surge in pre-tax profits of 76 per cent this year.

Bath-based Lovehoney has seen profits rise from £5.1m to £9m following strong website growth after the UK voted to leave the EU last year.

The company, which is run by Richard Longhurst, pictured above left, and Neal Slateford, attributes a large part of its success to the fact 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.

The company says its online-only model has 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.

Read more: UWE to host event exploring future business links with China

Co-founder Neal Slateford said: “Three-quarters of the trading year followed the Brexit vote and we have not found the political uncertainty has impacted on sales.”

Sales are also up 31 per cent - increasing from £58m to £76m - after the online firm was awarded the Queen’s Award for Enterprise in 2016.

Slateford added: “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.”

The founders say that the company’s record growth has, in part, been driven by the “Fifty Shades effect”.

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