Sales of such saucy outfits rose 60% last year, helping the adult shops lift group profits to £2.8m from £2.2m in the year to June 2005.

While the core UK business saw profits drop to £2.1m, after being amalgamated with loss-making sister chain Knickerbox, the overall group has seen good growth. Sales rose from £123.1m in 2004 to £143.3m, while like-for-like sales for the year were up 11%, according to accounts to be filed this week.

Jacqueline Gold, chief executive, said high-street conditions were difficult, but its “unique” position helped it to maintain growth. “It’s a very competitive trading environment. But we are pleased we have been able to buck the trend,” she said.

The group, with 135 stores, was encouraged by reaction to its 24 new-format shops, with a more “glamorous boudoir” atmosphere. It has also opened a trial store in Spain, but Gold wants to concentrate chiefly on investing more in the UK.

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