Ecommerce provider, The Hut Group, has ranked Number 1 in this year’s ‘Sunday Times Tech Track 100’. Appearing for the third consecutive year, The Hut Group has seen sales grow 189 per cent a year from £997,000 in 2005 to £24m in 2008.

The list ranks the fastest-growing private technology companies in Britain by sales growth over a three-year period. Rising from eighth position in 2008, The Hut Group provides ecommerce solutions for some of the UK’s leading retailers including Asda, Argos, LoveFilm, Woolworths and WH Smith. The Hut Group also runs its own stores, TheHut.com, a broad market place, which offers a range of lifestyle products such as clothing, beauty, entertainment and electronics. It also acquired high street brand, zavvi.co.uk in March this year and transformed it into a thriving leisure and entertainment focused online-only retailer.

Matthew Moulding, CEO at The Hut Group (THG), comments, “To be ranked 1 is a incredible achievement. Given the tough economic climate, the huge growth and subsequent listing in the Tech Track is especially rewarding and we’re thrilled we have been able to buck the downward trend.

“The company has grown rapidly and thanks to the demand for competitively priced entertainment products and our new product categories. There is a real opportunity for us to drive the business forward; we’ll continue improve the overall offer and experience to our customers which is our overall goal, this will deliver increased in market share in all the areas we operate in. The recent raft of management appointments within the senior team means we are well on the way to deliver our ambitious target of £90m turnover in 2009 and driving the business to the next stage in its exciting journey,” continues Moulding.

In the coming months, the group will continue to expand the range of products available, offering customers increased choice and functionality, while delivering the best price and value; as well as launching new sites with 4 major retailers in the next 4 weeks, making them the best choice for consumers during peak Christmas trading in 2009.

About The Hut Group

Based in Northwich, Cheshire, The Hut Group (THG) was established in 2004 by entrepreneurs, Matthew Moulding and John Gallemore. The Hut Group delivers a white label ecommerce service for a number of major retailers including ASDA, Woolworths, Argos and WHSmith.

The Hut Group also has two successful etail brands within its portfolio. TheHut.com is a multi-channel retailer offering a variety of home entertainment and lifestyle products, such as DVDs, Blu-ray and CDs, as well as lingerie, cosmetics and sports and leisure equipment.

High street brand Zavvi was acquired by The Hut Group in March 2009 and is now a thriving online-only retailer. The refreshed zavvi website offers customers a wider choice of entertainment products, with free delivery.

A Sunday Times Tech Track company, The Hut Group is the fastest growing technology company and is ranked 1 in the UK.

For further information, please visit www.TheHut.com, www.zavvi.co.uk or www.thehutgroup.com.

Follow us on Twitter: @thehut_com and @zavvionline

Clearwater Corporate Finance advised The Hut Group on the deal, which will see the creation of up to 100 jobs over the next 12 months at their head office in Northwich, Cheshire, where the company also runs TheHut.com.

The new Zavvi website will offer consumers a much broader range of entertainment products as well as a new range of lifestyle products, including electricals, computing & perfumes. Zavvi.co.uk will be driven by a major focus on delivering exceptional customer service and product availability at much lower price points than previously on offer. Free delivery will be standard on all products sold on the Zavvi website. Today’s launch of Zavvi.co.uk will be supported by an extra 10 per cent discount across all products until midnight on Friday 6 March.

Matthew Moulding, CEO of The Hut Group, comments, “Zavvi is a major player in entertainment retail, both in the UK and Ireland. Our aim is to capitalise on this well recognised high street brand and transform the business into a leading class online retailer, not only in entertainment, but also across lifestyle products. The new discounted price points, supported by significant future investment in customer driven functionality improvements, should enable us to create an exciting online retailer.

“The team is excited about the opportunities this acquisition presents and the growth plans across The Group will be supported by our continuing drive to add talented new members to the team across most disciplines.”

In addition to TheHut.com, The Hut Group delivers complete online retail platforms for many major retail brands such as Asda, WH Smith, Phones 4U & LoveFilm. The Group anticipates achieving sales of more than £75 million in 2009, having achieved a turnover of £25 million in 2008. The Hut Group currently employs over 100 people.

Carl Houghton, partner with Clearwater Corporate Finance added; “The Hut Group is a welcome bright spot amidst the doom and gloom in the retail sector. Through mergers and acquisitions, The Hut Group intends to push into further categories and is a transformational partner for good but subscale B2C ecommerce businesses.”