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Hobbycraft Announces 18% Rise in Earnings
Listed under: News
Published: Tuesday, August 02, 2011
Arts and crafts retail giant Hobbycraft has announced a 12.8% increase in turnover, and an 18% rise in pre-tax earnings in the 52 weeks to 20 February 2011.
Turnover increased from £84.4 million to £95.2 million, and pre-tax earnings rose to £14.4 million from £12.2 million in 2010.
It's the company's first full year under the ownership of Bridgepoint, during which time a number of operational changes were made, such as the appointment of Catriona Marshall, the new CEO, the implementation of a three-phrase operational improvement plan, and the opening of four brand new stores, bringing the end-of-year store portfolio to 51 (although now 53).
“The company’s performance over the past year has been encouraging and reflects the growing popularity of arts and crafts in the UK,” says Catriona. “The business is undergoing a lot of change, as we look to appeal to new customer groups.
“We are still only part-way through implementing our plan with a new management team in place which has the relevant skill set and experience to drive profitable growth.
“Whilst we are not immune to the effects of a consumer downturn, we are confident about the long-term prospects of the company and are pleased with progress to date. These results show that our business continues to perform well as we seek to strengthen our position as the country’s leading arts and crafts retailer.”
In its business statement, Hobbycraft said: “In order to target more customers, the Company is focusing on building relationships within the local community of each store through outreach programmes and social media.
“Sales during the year were boosted by the effect of more schools being proactive in making and crafting, with a variety of projects. We are welcoming school groups into Hobbycraft to help them with their projects and to teach them new craft skills such as papercraft.
“The increase in crafting with children is also being reflected in the home where, according to Hobbycraft research, parents and kids are spending more time baking, particularly cupcakes and biscuits, as well as getting involved in craft activities.
“These popular activities are being seen as a more participative alternative to television and computer games.”
It's the company's first full year under the ownership of Bridgepoint, during which time a number of operational changes were made, such as the appointment of Catriona Marshall, the new CEO, the implementation of a three-phrase operational improvement plan, and the opening of four brand new stores, bringing the end-of-year store portfolio to 51 (although now 53).
“The company’s performance over the past year has been encouraging and reflects the growing popularity of arts and crafts in the UK,” says Catriona. “The business is undergoing a lot of change, as we look to appeal to new customer groups.
“We are still only part-way through implementing our plan with a new management team in place which has the relevant skill set and experience to drive profitable growth.
“Whilst we are not immune to the effects of a consumer downturn, we are confident about the long-term prospects of the company and are pleased with progress to date. These results show that our business continues to perform well as we seek to strengthen our position as the country’s leading arts and crafts retailer.”
In its business statement, Hobbycraft said: “In order to target more customers, the Company is focusing on building relationships within the local community of each store through outreach programmes and social media.
“Sales during the year were boosted by the effect of more schools being proactive in making and crafting, with a variety of projects. We are welcoming school groups into Hobbycraft to help them with their projects and to teach them new craft skills such as papercraft.
“The increase in crafting with children is also being reflected in the home where, according to Hobbycraft research, parents and kids are spending more time baking, particularly cupcakes and biscuits, as well as getting involved in craft activities.
“These popular activities are being seen as a more participative alternative to television and computer games.”
