Ethical clothing firm Adili saw sales more than double last year, but profits were lowered by investments in a new e-commerce site and slimmer margins, it said in a trading update.

The online retailer said sales for the year ended 30 April 2009 were up 56%, but said EBITDA was expected to be marginally lower than market expectations.

The company launched a new website in November 2008, making its mark on EBITDA together with reduced gross margins owing to discounting in line with tough UK retail conditions.

However, it said the launch of a new website platform represented a "significant stepping stone for the future growth of the business" and had been well received by customers. Adili's conversion rates were reported to be significantly up year on year.

Both its own labels, Adili and Ascension, delivered their first collections in the financial year and are achieving above average sell through rates. Adili continued to invest to increase the proportion of sales represented by own label products during the year, it said.

Nick Samuel, chairman of Adili, said: "I am pleased to report another year of considerable progress for Adili. Current trading remains buoyant and sales growth, despite the present economic conditions, is accelerating as internet shopping and the ethical market continues to gain popularity."

The company remained debt free as at 30 April 2009, and expects to announce preliminary results for the year ended 30 April 2009 in July.