The Hut Group sees 30.4% increase in full-year sales
Online retailer The Hut Group saw a 30.4% increase in sales in the year to 31 December 2012 as the group continued to invest in its proprietary technology platform to help drive growth.
Sales grew to £145.3 million from £111.4 million in the previous year while EBITDA rose from £4.4 million to £10.1 million.
Profit before tax was £0.3 million compared to a loss of £12.7 million in 2011. The group also increased its margins in the year.
The Hut’s own brands such as MyProtein and Lookfantastic contributed 5% of sales, while 36% of sales were to international customers.
Never Miss a Retail Update!During the year, the group continued to invest in its proprietary technology platform which included building a new data warehouse and analytics cube to deepen customer insight, the launch of a new optimised single page checkout, and simplifying the basket checkout process to improve conversion. The company also launched a new mobile platform.
Matthew Moulding, chief executive said: “I am pleased to report another strong set of trading results for the group. The growth in both our own branded products, as well as our rapid expansion overseas, is presenting the group with some significant opportunities in our principal operating categories of Lifestyle and Health and Beauty.
“Our substantial and recurring investment in the group’s proprietary operating platform is fundamental to increasing operating leverage which the Group is realising as we build scale. The platform has been a key factor in delivering the trading growth in 2012 which continues in 2013.
“Continuous investment in our data platform generates ever deeper trading insight into our customers and is a key component in ensuring the group generates low cost, highly relevant visitors to our websites.”
Chairman Richard Pennycook added: “2012 has been a particularly pleasing year for the group, delivering some excellent financial results during a period of sustained high growth. The group’s model is showing itself to be both scalable and disruptive, with international markets a particular opportunity.
“The group remains well placed to continue its high growth across its core Lifestyle and Health and Beauty markets, especially as the channel shift towards online sales continues.”
