The Hut hails ‘milestone year’ as profits soar
THE Hut Group, the Cheshire-based retailer, has hailed a “milestone year” of growth, international progress and job creation.
The Northwich-based company, which unlike other e-commerce business in the region such as AO World and Boohoo, has remained in private ownership, said it plans to launch its first Chinese website in the coming months, having seen international sales surge 74% to £113.3m in 2014 on the back of the launch of 17 new websites for overseas consumers.
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Total sales were uo 39% to £244m, while underlying earnings were up 50% to £22.6m, and underlining The Hut’s status as winner of the Sunday Times Profit Track Award for a second year in a row.
Having agreed a deal with international investors KKR and BlackRock in 2014, the company said it had agreed a £80m banking facility agreed with Barclays, HSBC and Santander, to boost further growth.
Co-founder and chief executive Matthew Moulding said: “2014 was a milestone year for The Hut Group, with record breaking revenue and earnings and strong international growth further cementing our position as one of the world’s largest and fastest growing online health and beauty businesses.
“We are also proud of our investment in talent, creating nearly 400 high-quality jobs in the year and attracting some world-class technologists and graduates to our home in the North West.
“Our focus is to further develop our own brand strategy and technology platform, underpinning our strong international growth and continuing differentiation. This year will see us launch another 12 international sites – including our first in Chinese – and will see our distribution and manufacturing centre of excellence (in Warrington) become fully operational in H2.
“With consumer sentiment becoming increasingly positive and with clear opportunities for further growth in front of us, we believe 2015 could be another strong year for the group.”
The Hut said it 2014 had also seen a “substantial increase” in cash generation, with £38.2m of cash generated from operating activities (2013: £22.3m) and a £54.6m year-end cash position.
In January it welcomed Prime Minister David Cameron and Chancellor George Osborne as it unveiled a £100m investment to create 2,000 jobs over the next three years at a new distribution and manufacturing centre of excellence at the Omega Business Park.
