Hotter sees sales growth
SHOEMAKER the Hotter Group saw turnover and profits grow at its main trading business last year.
The Lancashire group, which makes shoes for older people, is planning to double turnover to nearly £80m after taking a £21m investment from Gresham Private Equity in 2007.
In the year to January Hotter’s trading business Beaconsfield Footwear turned over £38.2m, up 2.4%, and made a pre-tax profit of £4.9, up 4.2%, according to recently filed accounts covering the year to January 2009.
Finance director Nick Davis told TheBusinessDesk that the business continued to perform well with sales up by 20% in the first half of 2009.
Hotter, based in Skelmersdale, has retail outlets in Chester, Southport, Bournemouth and Gretna and sells through 300 independent UK retailers. It has more than 360 staff.
Director Andy Marsh, who heads Gresham’s Manchester office, said Hotter was planning on organic growth and would not rule out acquisitions. “We would consider it, but it would have to be the right one,” he said.
Hotter Group Holdings, the company formed at the time of the Gresham buy-in, recorded a £3.7m loss after taking into account amortisation of goodwill of £2.6m and notching up interest payments of £7m, payable mainly on shareholder loan notes and bank loans.
The loan notes, which carry interest of 12%, account for £39.2m of the group’s £51.7m debt and are held by Barrington House Nominees, an investment vehicle controlled by Gresham and Hotter’s managing director Stewart Houlgrave.
Mr Davis said the group preferred to use shareholder funding rather than take on bank debt at the time of the Gresham deal. He added that the loss was expected and the cash position iof the business was ahead of expectations at £8.2m.
