Trading Update: 6 months to 30 June 2013
The Hut Group Limited (the Group), one of Europe’s fastest growing online Lifestyle and Health and Beauty groups, reports on continued strong trading for the 6 months ended 30 June 2013.
- Net revenue1: £77.1 m (2012: £59.1 m), representing a +30.3% increase year-on-year
- 39% of revenue generated through proprietary Group brands
- 37% international sales mix
- EBITDA growth significantly ahead of revenue growth, demonstrating the Group’s operating leverage
- The revenue and earnings growth has led to a significant increase in cash generation
- £24m facility agreed with Barclays on improved terms and an extended period, for the addition of new brands to the Group’s own brand portfolio
1 From continuing business only
- The Group continues to expand its direct supply of Prestige and Lifestyle 3rd party brands, adding over 100 in the period including: Hugo Boss, Vivienne Westwood, Paul Smith, Marc Jacobs, APC, Church’s, Ugg, John Smedley and Lindeberg
- Continued expansion of the Group’s Technology Services Division adding a number of contracted technology services with Unilever plc
- Launch of the Group’s proprietary recommendation engine, personalising the individual retailing environments and driving increased consumer engagement
- Appointment of Phil Wilson as Chief Technology Officer effective from 1 September 2013, formerly of Amazon, eBay and Last.FM
- Over 250 jobs created in the last 12 months, taking the Group to approximately 750 employees, with further job creation anticipated over the following 12 months
Matthew Moulding, Chief Executive commented:
“2013 has witnessed another step-change in the Group’s data driven retailing capabilities. Our continued investment in both people and technology is a key driver behind the continued high levels of growth in sales, profitability and cashflow across the Group.
The progress we’ve made during 2013 puts us on target for delivering at least 50% of the Group’s sales from both our own Lifestyle and Health and Beauty brands as well as from international markets in 2014. To assist us in reaching this goal, we will continue to focus on attracting elite talent to the Group as well as on-going investment to enhance our proprietary technology platform.”
Richard Pennycook, Chairman commented:
“The Group occupies market leading positions in its key Lifestyle and Health and Beauty categories and territories, with the growth of its own brands a particular highlight. The business has continued its track record of revenue and earnings growth and is very well placed to deliver a strong performance in the second half of the year.”
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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 Lifestyle and Prestige sectors specifically sports nutrition and vitamins; cycling and endurance; health and beauty; weight management; clothing, footwear and accessories. In June 2011, the Group launched a new division (Technology Services), focused on the provision of business to business software and ecommerce platform services with media and brand partners.
The Hut Group launched its first website in 2004 and focuses on Lifestyle and Prestige product categories which share specific defining product characteristics: non-perishable, high repeat purchase, one-man delivery and low levels of customer returned products. The Group now operates 15 individually branded websites including:
- Lifestyle: including www.Myprotein.com, www.Myvitamins.com, www.ProBikeKit.com
- Prestige: including www.Lookfantastic.com, www.Mankind.co.uk, www.HQHair.com, www.BeautyExpert.com, www.allsole.com, www.mybag.com, www.TheHut.com, www.ExanteDiet.com, www.Coggles.com
- Consumer: including, www.Zavvi.com,www.Iwantoneofthose.com
The Group’s ‘multi-category, multi-website’ ecommerce model in Lifestyle and Health and Beauty categories enables the Group to showcase its own branded products and other prestigious brands 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, facilitating highly effective data-driven retailing through optimised website content and bespoke marketing content generating high levels of consumer loyalty, choice, repeat purchase and satisfaction.
For further information, please visit www.www.thg.com