The Hut Group, the online conglomerate that counts Sir Stuart Rose and Sir Terry Leahy among its shareholders, said it moved back into profit last year prompting rumours it may be preparing to sell shares on the stock exchange.
Pretax profit was £300,000 in the year to December 31 compared to a £12.7 million loss a year earlier. The Hut has long considered floating on the stock market to allow founder Matthew Moulding to release equity. But it abandoned plans in 2011 amid turbulent market conditions.
However, this year has seen a surge in share prices opening a possible window for a share sale.
The company sells products on 15 web sites including Zavvi.com, Mybag.com and Probikekit.com. Products also include health and beauty, sports supplements and clothing. Sales at the group increased 30.4 per cent to £145.3 million as it acquired its own brands and extended operations in overseas markets. Profit, measured as earnings before interest, tax, depreciation and amortisation, increased 130 per cent to £10.1 million.
'I am pleased to report another strong set of trading results for the group. The growth in both our own branded products as well as our rapid expansion overseas is presenting the group with some significant opportunities in our principal operating categories of Lifestyle, and Health and Beauty,' chief executive Moulding said.
The company said 35 per cent of sales are from brands owned by the Hut and 36 per cent of sales are international.
In March The Hut announced it had appointed former Morrisons finance director Richard Pennycook as chairman replacing Angus Monro. Monro will remain as a non-executive director and is a shareholder. Former Debenhams chief executive Terry Green is also a shareholder.
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