Turnover at high-end children’s clothes retailer Childrensalon is forecast to exceed £40 million this year, a growth of about 60%.

Revenues increased 36.7% to £27.4 million last year while gross profit increased 38.5% to £14.7 million, according to the firm’s latest accounts filed at Companies House.

Operating profits rose from £3.9 million to £6.3 million, helped in huge part to a drastic fall in its distribution costs.

The Tunbridge Wells-based business, which has had a shop in the town since 1952, opened a second warehouse in the early part of last year and relocated all stock without any impact on deliveries.

The company has undergone huge expansion, driven mainly by sales to clients in the Middle East snapping up luxury brands like Dior, Gucci and Burberry.

“We continued to focus on dressing children beautifully and becoming the best-loved children’s shop in the world..." - Michele Harriman-Smith, Childrensalon

It also secured the purchase or lease of two more warehouses to accommodate future growth, which it is set to occupy by the end of the year.

It said its future property requirements are under review.

The company has grown staff numbers to more than 170 and launched a mobile-optimised site last year.

The firm was listed in the MegaGrowth 50 for the second consecutive year in October and has also been featured in the Sunday Times Fast Track 100, Profit Track 100, International Track 100 and the London Stock Exchange 1,000 Companies to Inspire Britain.

Pre-tax profits grew to £6.2 million, up from £3.8 million in 2013.

Chief executive Michele Harriman-Smith said: “We continued to focus on dressing children beautifully and becoming the best-loved children’s shop in the world.

“We look forward with anticipation to the coming years, where we will strive to build on our successes and continue to serve our customers.”

Its latest accounts were its last before a company restructure which brought it under a new holding company Childrensalon Group Limited.