MICHELLE Mone's MJM International has made a heavy loss in its final financial year before its assets were transferred to Ultimo Brands International, its parent company.

MJM, which has now ceased trading, made a retained loss of £780,550 for the 11 months to December 31, 2013, accounts newly available at Companies House reveal.

The accounts, which come a year after the company posted a retained profit of £343,082 in 2012, cover the period in which Sri Lankan-based MAS Holdings acquired a 51 per cent stake in the business. MAS is the ultimate owner of Ultimo.

The investment from the Asian leisure and swimwear manufacturer came on the same day Ms Mone acquired the shares in the business held by her former husband Michael Mone, and Thomas Walker.

Ms Mone now holds a 49 per cent stake in the company, having previously held a 47 per cent shareholding.

MJM has previously linked losses at the company to the Mones' marital breakdown, and yesterday confirmed the most recent had been anticipated and was also connected to those circumstances.

However, Ultimo Brands International is confident the business will return to profitability in its 2015 financial year.

The notes to the MJM accounts state: "The company has made significant losses for the 11-month period to December 31, 2013 and the Directors anticipate that the company will be loss making for the next 12 months. However, due to changes in strategy going forward, as well as the support of MAS Capital (Private) Limited, the Directors anticipate that the company will return to profit following the strategy changes."

The latest accounts for Ultimo Brands International show the company made a retained loss of £48,673 for the period ended December 31, 2013.

A spokeswoman said this could be attributed to the legal costs involved in the change of ownership from MJM to Ultimo Brands International.

The company, whose ultimate controlling party is the Sri Lankan registered MAS Holdings (Private Limited), invested £3,386,930 to acquire a 100 per cent holding in MJM International during the year.

Abbreviated financial statements for Ultimo Brands International show that the company had shareholder funds of £3,338,257 at the period end.

The trade and assets of MJM International were hived up into Ultimo Brands International following year end, the accounts state.

Ultimo founder Michelle Mone said: "The performance of MJM International, which has now ceased trading, is no reflection of the performance of Ultimo.

"Ultimo now operates under the trading name Ultimo Brands International. The company's balance sheet is in a strong position and the business is on target to return to profitability next year.

"I am incredibly excited about the future of Ultimo. We are expanding rapidly, with a pipeline of 12 new stores opening across the UK in the next 12 months."

Ultimo opened its first House of Fraser concession in Manchester last week, and confirmed that work on its outlet in the retailer's Glasgow store will start next week.

The spokeswoman added: "Ultimo's balance sheet reflects Michelle Mone's and MAS Holdings' continued investment in the business.

"As a result of this investment, we have more than doubled our workforce since the change of ownership and laid plans to expand internationally."