Profits at lingerie and sex toy retailer Ann Summers almost halved last year, according to accounts filed at Companies House earlier this month.
The accounts revealed that, in the 12 months to June 2006, pre-tax profits fell to£1.53 million, down from£3 million the year before. Sales fell from£117 million to£110 million over the same period, despite the opening of 12 stores.
Chief executive Jacqueline Gold recently announced plans to expand into Europe. However, the retailer faces increasing competition from chemists such as Superdrug and Boots, which are now selling limited ranges of sex toys.
A spokesman for Ann Summers told The Daily Telegraph: “It has been a tough couple of years on the high street, but we are always looking at ways of improving sales.”