Plunging figures at Ultimo as Brexit hits
ULTIMO – known for its plunging bras, underwear and swimwear – has revealed losses for its last financial year and warned that it will not make a profit this year as Brexit looms.
The lingerie brand, founded by entrepreneur Michelle Mone in 1996, is now owned by Sri Lankan lingerie firm MAS Holdings.
It recorded a pre-tax loss of £3.9 million on sales of just £2.2 million in the year to December 31, 2016, due to costs, expenses and £2 million in writedowns of intangible assets.
The previous year the company had made a £1.8 million pre-tax loss on a turnover of £2.1 million.
In their notes to the accounts, the directors said that the company was operating on a going concern basis and said: ‘The company has made significant losses in the year to December 31, 2016, and the directors anticipate the company will continue to be loss making for the year to December 31, 2017.’
A spokeswoman for Ultimo told The Mail on Sunday yesterday: ‘Trading remains incredibly competitive and the 2016 figures reflect this.
‘It’s a pattern that we expect to continue throughout 2017, due largely to ever-increasing competition, heavy high street discounting, continued pressure on household incomes and the rising cost of imports following the Brexit decision.
‘But we remain focused on our goal to grow revenue and return to profitability by adapting to the conditions.’