• Gross FY profit of GBP248,000
  • UK & EU sales up 33%
  • Strong up-take for the coming season

Surfwear and fashion brand Hot Tuna has swung to a full-year profit, as moves to cut costs across its business have started to pay off.

The firm posted a gross profit of GBP248,000 (US$397,012) for the year to 30 June, compared to a loss of GBP27,000 during the prior year period.

It also said its annual revenue was up 1.6% to GBP1.14m, and that it raised GBP860,000 during the year by issuing 283m new shares.

The company's UK & EU sales were up 33% on last year, while there was strong growth of its children's range in Australia

Geoff O'Connell, Hot Tuna CEO, said: "Although over the past year the retail trading environment was challenging, we have worked hard to simplify the corporate structure and reduce our operating costs.

"This has resulted in a more streamlined and higher margin business.

"We are confident that the combination of delivering the right product, to the right buyers across all our territories will continue to deliver solid revenue growth."

"We are positive about the outlook for 2010 and go forward confidently."

The company said that new collections have had a strong up-take for the coming season, across all regions with new national retailers and e-tailers taking the product for the first time.

It said the reintroduction of the profitable swim range, absent from the Australian market last year, will also boost revenues. The European market will see the introduction of a children's range.

Click here to view the company's full annual report.