The Hut Group Continue to Deliver Strong Revenue and Earnings Growth
The Hut Group Limited (the Group), one of Europe’s fastest growing online retailers and brand owners, reports on continued strong trading for the 6 months ended 30 June 2012.
- Revenue: £66.2m (H1 2011: £42.9m)
- EBITDA: £4.0m (H1 2011: £0.3m)
- 54% sales growth
- Significant margin progression, with 6% EBITDA (H1 2011: 0.7%)
* From continuing business only
- Following 2 significant acquisitions over the previous 18 months, Lookfantastic and Myprotein, the Group has successfully integrated its supply chains and technology platform, leading to significant synergy benefits in the Period
- Successful exit from legacy low margin music and books categories and from white label activity, leading to enhanced margin performance
- Key performance statistics for the Period include:
- 6.6 million unique customers within the Group’s database;
- 44.1 million visitors to the Group’s websites (2011: 32 million); and
- 4.7 million units delivered (2011: 3.5 million).
- The Group has continued to invest in its proprietary technology platform including:
- building a new Data Warehouse and Analytics Cube to deepen customer insight, as a part of the Group’s data driven retailing strategy;
- the launch of a new optimised single page checkout built on scalable open source technology, simplifying the basket checkout process to improve conversion; and
- the launch of an internal payment gateway integrated with additional international payment options in support of international sales growth.
- Appointment of Martin O’Grady as Group Operations Director. Martin has over 20 years of Operations experience at 20:20 Mobile Group, Kuehne & Nagel and Exel Logistics.
- In May 2012, the Group renewed and extended its banking facilities with Barclays.
Matthew Moulding, Chief Executive commented:
“The Group is positioned as market leader in a number of differentiated and high growth sectors with significant barriers to entry. The combination of our market positioning and constant advances in customer insight through data analytics is driving both customer and revenue growth. The Group’s gross margin progression is very pleasing and now that we have integrated recent acquisitions and are delivering significant operating leverage, the EBITDA progression is a major highlight”.
Angus Monro, Chairman commented:
“Management has successfully integrated two large acquisitions in the past 18 months whilst at the same time delivering substantial organic sales and earnings growth. The strong trading performance of the business is testament to the calibre of the management team and the strength of the business model.”
Tel: 0207 796 4133
Andrew Leach / Alex Brennan
Notes to Editors:
About The Hut Group
The Hut Group is a ‘multi-category, multi-website’ specialist on-line retailer and brand owner, selling high repeat purchase goods direct to consumers across the sports nutrition; health and beauty; entertainment; gifting; clothing and accessories markets. In June 2011, the Group launched a new division (Technology Services), focused on the provision of business to business software and ecommerce platform services.
The Hut Group launched its first website in 2004 and now operates 15 individually branded websites across product categories which share specific defining characteristics: non-perishable, high repeat purchase, one-man delivery and low levels of customer returned products.
The Hut Group operates 3 ecommerce divisions:
- Lifestyle: including www.Myprotein.com and www.Myvitamins.com
- Prestige: including www.Lookfantastic.com, www.Mankind.co.uk and www.HQHair.com
- Consumer: including www.TheHut.com, www.Zavvi.com, www.Iwantoneofthose.com, www.Allsole.com and www.MyBag.co.uk
The Group’s ‘multi-category, multi-website’ ecommerce model is an evolution to the traditional ‘single’ site ecommerce model, enabling the Group to showcase branded products in bespoke retail environments, as required both by the brands and informed consumers.
The Group’s proprietary technology platform is central to the business model. The platform functionality ranges from the presentational layer through to all back office functions including an in-house data centre, whilst also generating in-depth consumer behavioural insight. The technology platform facilitates highly effective data-driven retailing, manifesting as optimised website content and bespoke marketing content generating high levels of consumer loyalty and cross-selling.
In 2009, The Hut Group was ranked no.1 in the ‘Sunday Times Tech Track 100 of the UK’s fastest growing companies’ and ranked the 3rd fastest growing digital company in Europe at the ‘GP Bullhound Media Momentum Awards’ in May 2010.
For further information, please visit www.thehutgroup.com