Dyson posted a slump in profits last year despite demand for its high-end hair dryers and vacuum cleaners pushing up sales.

Sir James Dyson’s engineering group grew revenues to £6.5bn in 2022, up from £6bn in the previous year. It came as Ebitda, a measure of operating profits, fell from £1.5bn to £1.3bn.

The company, which is headquartered in Singapore with engineering operations in Britain, closed its Russia business last year and said higher shipping and logistics prices had cost it £120m in 2022.

Roland Krueger, the company’s chief executive, said 2022 had been one of the toughest years for Dyson but said it had increased investment in research and development.

It recruited more than 1,000 new engineers and scientists last year and said capital expenditure – on equipment and facilities – jumped from £284m to £463m.

Staff missed out on a bonus under the company’s performance scheme but Dyson said 90pc of staff had been handed a one-off payment in recognition of “exceptional efforts” and that salaries would rise.

Many electronics companies struggled with higher costs last year amid semiconductor shortages and lockdowns in China for much of the year. Dyson closed its Russia business in February, in the days before Vladimir Putin’s invasion of Ukraine.

Last year, the company unveiled the Dyson Zone, a £749 set of headphones with air-purifying filters designed to protect wearers from pollution, as well as a new version of its cordless vacuum.

Revenues rose as customers increasingly chose to buy from its own stores and website, rather than through third-party retailers, and spent more on higher-end devices.

Mr Krueger said: “This was one of the toughest years that Dyson has faced but thanks to some exceptional efforts from individuals we navigated it, while the fact we stepped up investment in the development of cutting-edge new technologies means we are well positioned for 2023 and our ambitious plans beyond.”

Last year, Dyson opened a new headquarters in Singapore, where it moved its base in 2019. It opened new robotics and software centres in London and Hullavington in Wiltshire. It said it would invest £500m in its growing haircare business which includes dryers, straighteners and curlers.

Sir James, who moved back to Britain in 2021, has warned that working from home is damaging productivity and that “short sighted” government tax rises are hampering growth.