Intimate apparel company Agent Provocateur has posted earnings before interest, taxes, depreciation, and amortization (EBITDA) of GBP2.2m (US$3.2m) for full-year 2008, down from GBP2.67m in the prior year.

It said the earnings deficit follows "ongoing investment in new stores, head office infrastructure and marketing and the increased cost base required for further international expansion".

The company, which designs, produces and retails of luxury lingerie, said full-year sales were up 26% to GBP20.7m for the year ended 31 March.

Since the business was acquired by private equity firm 3i in November 2007, 13 new stores have been opened bringing its total to 43 outlets.

In its outlook the company said it was benefiting from an ongoing investment programme, with year to date total sales currently 8% ahead of the same period last year.

Garry Hogarth, Agent Provocateur's chief executive, said: "Agent Provocateur is going from strength to strength. Despite the challenges of the global economic environment, we continue to trade strogly and remain commited to our ongoing investment programme accross the business.

"This significant investment programme, including new store openings in some exciting locations in the world, has given us the platform to grow the business.

"We are confident that our robust business model and strong operational disciplines will ensure our continued success and we look forward to reporting on further progress."