Hotel Chocolat expects to see its sales jump as restrictions ease further
Hotel Chocolat, the British chocolatier, has raised £40m in a recent share placement as it eyes a new digital-based strategy.
The share placing, led by Peel Hunt and Liberum Capital, was reportedly oversubscribed.
“The £40m growth capital raised today will be invested in our fast-growing business, furthering our aim of becoming a global digital-led chocolate brand. I’m delighted that our issue was oversubscribed, demonstrating the support Hotel Chocolat enjoys with its investors,” said co-founder and CEO Angus Thirlwell.
Hotel Chocolat considers now to be an opportune time to raise funds as it expects to see its sales jump as restrictions ease further.
The company recently released a trading update suggesting its profits for the year to 27 June would surpass previous expectations.
Since the pandemic began, this is the second time that the retailer has raised money from its shareholders. In 2020, just before the UK’s first Nationwide lockdown, Hotel Chocolat confirmed a £20m placing.
At that point, despite the potential oncoming downturn, the placement’s purpose was to support the company’s growth strategy rather than to guard against financial distress.
Since then, Hotel Chocolat’s growth has predominantly come via digital channels.
The Hotel Chocolat share price (LON:HOTC) is down by 0.6% on Friday morning to 357.80p per share.