Another year of strong growth for Hobbycraft
By Mark Hayhurst 12 Jul 2019
Hobbycraft, the UK’s leading arts and crafts retailer, has announced full year results for the year ending 17 February 2019.
Key financial and operational highlights include:
- Total revenue increased by 5.4% to £177.7 million
- E-commerce revenue grew by 22.7%
- Strong growth in Adjusted EBITDA* of 27.8% from £9.5 million to £12.2 million
- Five new stores opened during the year bringing total store portfolio as at year end to 94
- Hobbycraft Club, the UK’s largest craft database, grows to over 3.9 million members
Hobbycraft Chief Executive, Dominic Jordan, said: “We are pleased with our performance and how our offer has improved over the past year. We continue to pursue our plans for multi-channel growth as we target our strategy to improve the broader appeal of our brand. This is being achieved through leveraging our broad product range which meets the needs of core hobbyists, families and everyday makers, with continued focus on delivering value to our customers.
“Our focus remains on great customer service and colleague engagement as we seek to provide help and inspiration to customers in their local communities. Our in-store workshop programme plays a key role where our colleagues demonstrate their incredible knowledge and passion for crafting whilst helping customers with their projects.
“Looking ahead, whilst we expect the retail environment to remain challenging we are well placed to continue to execute our growth plans, with initial trading in the first quarter of this year ahead of the prior year.”
Hobbycraft delivered another strong year of growth with total revenue increasing by 5.4 per cent and online growth of 22.7 per cent.
They will continue to open new smaller format stores in relevant locations across the United Kingdom to drive profitability and brand awareness. This is coupled with their plans to increase E-commerce participation through investing further in their online experience as well as driving Click and Collect growth.
They intend to continue to drive footfall to stores through an increase in their in-store demos and workshop programme where we taught 100,000 customers last year. They are fast becoming the social centres for craft in their local communities.
Hobbycraft’s multi-channel channel growth is also supported by the Hobbycraft Club which now has 3.9 million members as well as their growing social media community which has now over 650,000 followers.
Their focus on all aspects of customer service has directly increased their Net Promoter Score to 86 per cent (2018: 82 per cent) and drive to support the wellbeing and development of their colleagues has helped improve their colleague engagement to 90 per cent.
*Management consider that Adjusted EBITDA reflects the trading performance of the Group, excluding the impact of capital investment. Adjusted EBITDA is operating profit/(loss) before exceptional items, share based payment charge or credit, the movements in fair value of financial instruments, any impairment charge or write back of tangible and intangible assets, any income statement charge or credit in relation to the onerous lease provision, shareholder monitoring fees, depreciation and amortisation.