The Hut Group increases bank borrowing to £795m for acquisition spree

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Hut Group bank

The Hut Group has increased its banking facilities to more than $1 billion (£795 million), giving it the power to accelerate its acquisition spree.

Banks have given the online beauty retail group,  which specialises in beauty and cosmetics, with a £195 million banking facility, adding to the £600 million revolving credit facility it secured in May.

The Hut Group said the funds would allow it to further international expansion, particularly in mainland Europe and the US.

Chief executive Matthew Moulding said the support of its banks was a sign of confidence in the company, and that the new funds give The Hut Group “significant firepower”.

“The world of beauty and wellbeing is being transformed globally by a digital channel shift and the explosion in high growth, small to medium-sized independent brands,” he said.

The banks providing the credit facility include Barclays, HSBC, Santander, Citibank and JP Morgan.

For the year to December 31, group sales at The Hut Grouop surged by 47 per cent to £736 million, boosted by 62 per cent skyrocketing growth in international sales.

Meanwhile, gross profit jumped 51 per cent year-on-year to £318 million and EBITDA grew 38 per cent to £69 million.

During the year The Hut Group splashed out £164 million in strategic acquisitions, including Espa, Glossbox, Illamasqua and RY.

In addition, £39 million was spent on physical infrastructure projects for manufacturing, distribution, supply chain and office facilities, while £25 million was invested in the technology platform.

The Hut Group has also commenced work its new 870,000sq ft head office at Manchester Airport, which will take two years to complete and will home to 10,000 employees.

The company is also planning to take on a further 2000 staff this year to keep pace with its rapid growth.

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