The Hut records strong first half profit growth

The etail group recorded a 30.3% increase in net revenue to £77.1m in the six months to June 30.

The Hut said that EBITDA growth was “significantly ahead of revenue growth” leading to an increase in cash generation.

Growth has been driven in part by The Hut’s own brand, which represents 39% of sales, and international revenue which made up 37% of sales.

The etailer is poised to hit the acquisition trail after agreeing a £24m facility with Barclays on improved terms over an extended period to buy further brands.

The Hut has also hired former Amazon, eBay and Last.FM executive Phil Wilson as chief technology officer.

The business has expended its technology services division to add a number of new clients including providing technology to Unilever.

Chief executive Matthew Moulding said: “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.”

The Hut chairman Richard Pennycook said: “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.”