Lingerie sales lift figures toward £1m profit level

Published on Tuesday 2 February 2010 21:02

MICHELLE Mone's lingerie company is expected to break the £1 million profit barrier this year after its latest accounts revealed a double-digit rise in sales despite the high street gloom.

Mone, recently awarded the OBE for services to business, also revealed she plans to move into the wider womenswear and beauty market with the launch of two new businesses this year.

The new ranges are expected to be launched initially in Debenhams stores and the group plans to extend its East Kilbride headquarters to accommodate the expansion.

Although Mone's MJM International company struggled to stay afloat in its early years, its financial performance of late has been impressive.

Pre-tax profits for the year ending 30 April 2009 rose to a record 960,000, a rise of 4 per cent on the previous year.

Although the company doesn't release its turnover figure, it said sales had increased by 12 per cent in the period. Mone said the current financial year had seen further gains in both sales and profits thanks to growing demand from retailers including Tesco and Asda.

"We are over the moon with the performance, particularly given how tough it is out there," Mone told The Scotsman. "We are now in a very strong position to build on the brand with the launch of the new businesses."

Mone said the MJM International lingerie business had recently been valued at 48m by business advisors.

"We have had some serious offers to buy the company as we are seen as one of the hottest brands in the UK. You can never say never but we are not interested at the moment and we are a cash rich company with no need for outside investors."

During the last financial year, Mone and her husband bought out the stakes of investors Sir Tom Hunter and Ian Grabiner in MJM International for 800,000.The Scots entrepreneur and the chief executive of fashion group Arcadia had invested in the company in 1999. The Mones now have full control of the Glasgow-based business.

The highest-paid director, presumed to be Michelle, received a pay package of 123,896, up from 110,457 in 2008. Mone and her husband Michael received 212,000 in dividends paid in respect of the 2008 figures. The company's total wage bill rose to 938,831 for its 27-strong workforce.

The 38-year-old mother-of-three has also set up a new company to market a herbal diet plan.