Michelle Mone looks to expand as uplifting figures buck retail gloom

A NUMBER of major players have disappeared amid tough times for the British high street, but the lingerie empire run by Glasgow tycoon Michelle Mone has demonstrated substantial buoyancy.

In the face of the economic downturn that has blighted many a rival, MJM International posted figures yesterday that – despite a fall in turnover – show it continues to make a profit.

The underwear designer is preparing to launch her own range of body lotions, perfumes and self-tanning products after hiring Margaret Atwell, the head of French fashion giant Yves Saint Laurent’s beauty division, to run her new venture.

Meanwhile, Ms Mone’s Ultimo lingerie brand has launched in major high street stores Next and Tesco, as well as Debenhams, where she has enjoyed a long-running partnership.

Ms Mone – who recently claimed she would move her business empire to England if Scotland became an independent country – told The Scotsman she has obtained listings in “every single department store” in the UK for her new Ultimo Beauty products, which will be launched in April.

The launch follows three years of “heavy investment” from parent company MJM in developing the new lines, which has eaten into profits at her core bra business. However, Ms Mone expects the new business to become even bigger than her existing Ultimo Lingerie brand in terms of profits and turnover.

Ms Mone, who paid herself a £127,000 salary last year, admitted that turnover at the company has dropped slightly from £10.1 million to £8.3m in the year to the end of April 2011. However, she insisted the fall was due to the end of a contract with supermarket giant Asda, which she said would be compensated in next year’s accounts by deals won over the past year.

“We’ve seen a lot of lingerie businesses hit the wall, but we’re in a strong position,” she said. “There have been a lot of challenging things going on, just like every single company around the world, including exchange rate pressure and increasing material and manufacturing costs in a big way. But we’re really looking forward to the future. Come the end of April, there will be some very exciting times ahead for MJM.”

High street giant La Senza recently fell into the hands of administrators, triggering the closure of more than 100 stores, while boutique Scottish lingerie firm Boudiche collapsed 18 months ago.

The bra tycoon’s business success comes as she recently spoke about the split from her husband Michael, claiming that her career came between the pair, who separated at the end of last year.

She has claimed that Mr Mone objected to his wife posing in her underwear for the brand two years ago after shedding six stones, while in a recent interview she told how she feels “so alone” following the split.

Accounts filed at Companies House revealed that pre-tax profits at MJM International dropped to £105,000 in the year to 30 April – from £795,000 the previous year.

But the entrepreneur – who set up her business in 1996, launching the first of her cleavage -enhancing Ultimo bras three years later – said the fall was down to the investment in developing the beauty products, along with the effect of exchange rates and rising raw material costs.

Federation of Small Businesses Scotland spokesman Colin Borland said: “Where firms like this are winning out … is in going the extra mile and really showing that dedication and passion to the brand and the customer.”