Ultimo sales top £10m for first time

MICHELLE Mone's lingerie business topped £10 million in sales for the first time last year but saw higher costs eat into profits.

Turnover at MJM International climbed by 19 per cent to 10.19m in the year to 30 April 2010 but pre-tax profits fell to 795,557 from 960,524, blamed on increased costs including investment in new fashion and beauty brands.

Despite what founder Mone described as a "highly challenging environment" with surging increases in cotton prices, freight costs and the VAT rise, she said the business was continuing to trade profitably in the current financial year. She also said the Glasgow-based company was looking to recruit a number of high level executives into the business to "take us to the next level".

Last year top designer Brian Rennie joined the company from international brand Escada and Mone said the "third-in-command" of a major beauty company would be announced shortly as a director.

The highest-paid director at the company, presumed to be Mone, received a 129,934 package, up by 6,000 on the previous year. Bank debts fell to 1.2m from 1.53m.