A year of record results, strong growth and continued investment
The Hut Group Limited (“the Group”), one of Europe’s fastest growing online Lifestyle and Health and Beauty groups, today announces its results for the year ended 31 December 2013.
- Sales1 up 34% to £176.4m (2012: £132.0m)
- International expansion has been a key driver behind sales growth
- Adjusted EBITDA increased by 48% to £15.0m, which was significantly ahead of continuing revenue growth thereby demonstrating the Group’s operating leverage
- A substantial increase in cash generation, with £22.3m of cash generated from operating activities (2012: £9.2m) and a £24.0m year-end cash position (2012: £20.0m)
- A new £36m banking facility agreed with Barclays in Q1 2014, providing substantial capacity to undertake strategic initiatives
- Winner of the Sunday Times Profit Track Award, for the fastest growing profits in Britain over the last 3 years, which followed winning the Sunday Times Tech Track award in 2009.
- The Group handled more than 6 million orders in 2013 and increased distribution capacity at its Warrington hub to 370,000 sq ft, helping deliver significant year-on-year cost reductions as a percentage of revenue.
- Next day delivery slots for UK orders extended to 8pm with a 15 minute delivery slot introduced on these orders.
- Created 400 new jobs in the year, including 97 graduate positions from Oxbridge and Russell Group universities.
Matthew Moulding, Chief Executive, commented:
“2013 was another year of record revenue and earnings for the Group. We continued to invest significantly in both the proprietary IT and data platform, as well as in our talent base. These initiatives are central to The Hut Group’s continuing differentiation and underpin our strong growth.
“We significantly broadened our international reach in 2013 and accordingly, 50% of the Group’s sales have been generated outside the UK in 2014. Our focus is to further enhance our capabilities and consolidate our position as one of Europe’s fastest growing specialist online retailers and brand owners, with 50% of sales in 2014 now being generated from our own brands.”
1 Excluding discontinued white-label sales
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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 Health and Beauty sectors specifically sports nutrition and vitamins; cycling and endurance; prestige health and beauty; weight management; prestige 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 Health and Beauty 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 operates 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 Health and Beauty 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. 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.