Losses widened at Victoria Beckham during 2016 as it invested for growth

Losses widened at Victoria Beckham's fashion label during 2016 as the brand invested for future growth, accounts just filed at Companies House have revealed.

In the year to 31 December 2016 the business recorded broadly static sales of £36.4m (slightly down from £36.9m in the prior year) while pre-tax losses hit £8.5m compared to £4.47m in 2015.

Its directors report says the business has invested heavily in design, production, marketing, sales and other overheads to enable it to capitalise on growth opportunities. And it was upbeat about its performance during 2017 citing the successes of the brand's collaboration with US mass-market retailer Target and a sell-out beauty collection for Estee Lauder.

"During the year the brand continued to build its distribution channels, working in particular with key clients in key territories such as North America, Europe and the UK to secure larger branded spaces in key department stores. The retail channel continued to perform well this year, through the flagship store in London and and its second store in Hong Kong, and the Estee Lauder collection was very well received selling out in just a few weeks," the directors' report said.

Victoria Beckham also announced a new collaboration with sportswear giant Reebok during the year, which it says will further enhance its profitability moving forward, and announced a move to a new HQ in Hammersmith, West London. Most importantly however, it finished the year by signing a deal with Neo Investment Partners who have ploughed £30m into the business to fund further growth of digital and retail channels and enable the brand to move into new categories and develop new collaborations.