Adult colouring books and scrapbooking help Hobbycraft profits leapComments Off on Adult colouring books and scrapbooking help Hobbycraft profits leap
Hobbycraft cashed in on the burgeoning love affair adults are having with colouring in books and taking up art, with profits jumping 26% in the year to February 22.
The company, owned by Bridgepoint private equity since 2010, also saw customers putting down their computers and smartphones, turning to scrapbooking, with sales of value scrapbooks and stickers soaring four-fold.
And despite the economy improving, with people having more money in their pockets, shoppers are remaining cost conscious by hosting DIY birthdays, with a 17% rise in sales of party accessories.
All of this led to total sales jumping 9% to £141.1 million, with underlying pretax profits up from £5.4 million to £6.8 million, also thanks to the opening of three new stores.
Hobbycraft now has 81 stores across the country, with two more due to open in the next few months.
Sewing machines were also popular, with sales up 34% and baking remains strong, up 13%.
The company had struggled last year, as supermarkets moved into the hobbies marketplace and took away customers.
It forced Hobbycraft to overhaul its prices and offer more value ranges, especially following the loom craze which saw customers turning to Poundland in droves.
Chief executive Catriona Marshall said: “Our business transformation programme is now paying off. The creation of a new distribution and supply chain alongside an expanding store network and a strong online trading platform, are driving strong growth.”