HobbyCraft EBITDA up 18% as boom in crafts continues

Turnover jumped 12.8% to £95.2m as the rise in the popularity of crafts boosted sales. The retailer said it has a “strong balance sheet” and that current trading “remains strong”.

In the first full year under the ownership of private equity firm Bridgepoint, the retailer said it initiated a “number of operational changes” including the appointment of Catriona Marshall as chief executive as well as a new three-phase operational improvement plan covering areas including recruitment, store design and IT.

Marshall, who joined from Pets at Home, said: “The company’s performance over the past year has been encouraging and reflects the growing popularity of arts and crafts in the UK.

“The business is undergoing a lot of change as we look to appeal to new customer groups.  We are still only part-way through implementing our plan with a new management team in place which has the relevant skill set and experience to drive profitable growth.  

“Whilst we are not immune to the effects of a consumer downturn, we are confident about the long-term prospects of the company and are pleased with progress to date. Today’s results show that our business continues to perform well as we seek to strengthen our position as the country’s leading arts and crafts retailer.”

HobbyCraft is focusing on building relationships within the local community of each store through outreach programmes and social media.  It said sales during the year were boosted by the effect of more schools being “proactive in making and crafting”.

HobbyCraft said the popularity of crafting among children is also being reflected in the home where, according to Hobbycraft research, parents and kids are spending more time baking as well as getting involved in craft activities. 

Since the year-end, the 53-store retailer opened two new format stores and said “a number of new store openings or refurbishments underway”. 

The retailer said it will revamp its systems and supply chain over the next 18 months “to enable the business to react faster to market trends and operate more effectively and efficiently”.

The retailer said it hopes the changes will “ultimately reduce the cost base, improve margins and facilitate growth plans to double the number of stores over three years and increase the Company’s presence online”.