Tech

The Hut Group announces a 40% surge in sales, but slow growth in the tech sector-latest retail tech news from around the world

The Hut Group announced a 40% increase in sales after moving to online shopping during a pandemic.

The Manchester-based e-commerce brand reported a year-long sales surge to £ 1.61 billion ending December, adding 10.7 million new customers.

“I think we will continue to increase our market share,” said Matt Molding, co-founder of the company. Times.

Underlying profits increased by more than a third to £ 151m, but one-off costs cost more than £ 500m.

Online retailers’ losses result from a £ 5 billion listing on the stock market. This was seen as a success in the tech industry after Deliveroo’s disappointing IPO.

“”[There was] Inevitably, some bumps associated with bringing the company to market

“My advice [to other businesses] It will take some time to get your story out there. If you say you’re a high-growth business, you need to properly explain why you are. Added moldings.

The listing on the stock market cost £ 14.3 million in banker fees, and the company also paid full wages to its staff during the blockade.

read more: The Hut Group investors sell £ 250m in stake as demand surges

The group also owns a series of luxury hotels that were closed during blockade restrictions as the hospitality sector was hit.

With its strong support, THG Ingenuity, the white label technology division, is an e-commerce-enabled platform and has experienced a slowdown of growth of only 7%.

Investors have high hopes for Ingenuity, with shares valuing £ 6.8bn, down 5.8% yesterday after listing at £ 4.5bn earlier this year.

The Hut Group recently added Homebase and UK Pentland companies to their Ingenuity client roster, but does not comment on the total amount.

The company reports only 7% growth, but Ingenuity CEO John Gallemore told analysts that it signed 31 new customers in the first three months of the year. Times..

The e-commerce brand says it would have made an operating profit of £ 45.5 million without a one-time cost.

The group said it plans to increase acquisition spending from the previous estimate of £ 50m to £ 250 after the nature of the new potential business has improved over the pandemic.

Current assets include a web-based tree planting and carbon offset platform previously acquired for £ 4m.

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The Hut Group announces a 40% surge in sales, but slow growth in the tech sector-latest retail tech news from around the world

Source link The Hut Group announces a 40% surge in sales, but slow growth in the tech sector-latest retail tech news from around the world

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