THE lingerie firm run by Scots businesswoman Michelle Mone is continuing to lose cash on the back of her marriage split, it emerged yesterday.
MJM International lost £231,000 in three months at the turn of the year – on top of losses of almost £550,000 for the previous 18 months.
The losses have been blamed on the 42-year-old’s split in December 2011 from her husband and business partner Michael Mone.
The couple launched the firm in but, following the split, Mone bought her former husband’s shares worth £24m.
Mr Mone set up a rival firm, Pendulum Apparel, with former Ultimo employee and now girlfriend, Samantha Bunn as his lead designer.
A spokeswoman for MJM International said that the company’s recent losses were related to the “difficult situation,” which arose when the Mones split in 2011.
She also warned that the company would feel the impact of this until the end of the year.
She said: “As previously reported, it’s [the loss] attributed to the difficult situation faced when our two founders parted ways in 2012. The business will feel the impact of this until the end of the year, but 2014 is all about success and growth – and we’re confident that we’ll be in a position to report a return to profit very soon.”
“It is very exciting times for Ultimo. The brand is currently being overhauled, with significant improvements being made to the product, and will re-launch in January 2014 with an aggressive marketing campaign. This will include a revamped website and a new, high-profile celebrity face. We’re also currently in the process of recruiting for several new positions, including an Ecommerce Manager and Brand Ambassadors for Scotland, England and Ireland.”
The abbreviated financial statement which was filed at Companies House covers the trading period from October 31 last year to February 2 this year.
The document shows that the company had a retained loss of £231,000, while it also revealed that the company’s net assets had fallen from £725,320 to £493,382.
Notes in the document said: “The company has made significant losses for the three-month period and the directors anticipate that the company will continue to be loss-making for the next 12 months.”
MJM’s recovery plan includes relaunching under the name Ultimo Brands International next year.
Eliaz Poleg, Chairman of Ultimo Brands International and Board Director of MAS Holdings said: “We are delighted that we will soon be operating under a new company name, Ultimo Brands International. The name-change reflects the resurgence of the brand and our ambitions for growth beyond the UK.”