BRITISH LINGERIE retailer Ann Summers felt the chilly effects of the Irish recession last year, with sales at its three stores declining by 11 per cent.

Latest accounts for Ann Summers Ireland (Retail) Ltd show its turnover fell to €3.3 million in the year to June 26th, 2010, from €3.7 million a year earlier.

But the company, which is run by multimillionaire businesswoman Jacqueline Gold and controlled by her father David, remained in the black, with profits rising to €748,447 from €509,313 the previous year.

This was largely due to a sharp drop in administrative expenses, which fell to €1.96 million from €2.6 million.

Ann Summers paid tax of €215,976 for the year to leave it with an after-tax surplus of €532,471.

This left the Irish business with accumulated profits of €3.2 million at the end of June last. The directors’ report states that they expect trading to “mirror the economic conditions prevailing at the time”.

Ann Summers operates three stores in Ireland, in Dublin, Cork and Limerick. It also organises parties for women around the country.

The company launched in 1999 with a store on O’Connell Street in Dublin.

Its arrival was not without controversy and the company had to fight a legal case against the local authority to retain its right to trade on the capital’s main thoroughfare. The case was won in 2000.

Ann Summers employed 34 staff in distribution and retail here last year, a drop of three on 2009.

It paid €840,000 in operating leases.

Ann Summers opened its first shop in London in 1970. It now has more than 140 stores in the UK, Ireland, Jersey and Spain, and a large online presence.

Based in Surrey, the company has gained its reputation from selling racy lingerie, underwear, cosmetics, swimwear and “related products”.

It acquired the Knickerbox brand about a decade ago.