27 July 2012 12:44
Cash-strapped Britons seeking to "make do and mend" helped lift full-year sales 12% at Hobbycraft as the retailer continued to expand.
The arts and crafts chain reported revenues of £106.5m in the 12 months to 19th February with EBITDA climbing 9% to £15.6m.
The chain was acquired in 2010 by private equity firm Bridgepoint Capital, which believes there is significant scope to expand the chain. Hobbycraft invested £7m in a store development programme and opened 10 new stores in the year. A further 14 new stores are scheduled to open this year as the retailer works to double the number of shops to 150 over the next three to five years.
Hobbycraft CEO Catriona Marshall explained: "Behind the scenes, as part of our business transformation programme, the overhaul of our trading and financial systems has continued and is expected to be completed by the end of this year.
"We have also invested in our supply chain, worked with new and existing suppliers to eliminate duplicated products and improved stock quality."
Looking ahead, Marshall said: "The current economic climate is deeply uncertain and this is naturally affecting consumer confidence in the UK. Hobbycraft is, however, well positioned to withstand general retail weakness, given its specialised offer, low ticket price and dedicated customer base."