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The Hut Group shares rise on continued expansion

The Hut Group has spent over £300m on acquisitions as it continues expansion plans.

The group bought US online skincare retailer Dermstore in a £259m deal as well as Claremont Ingredients and David Berryman for £59.5m.

The Hut Group floated shares on the stock exchange in September and was valued at £6.8bn on Christmas Eve.

Matthew Moulding, the chief executive, said: “A key driver behind the decision to list THG on the London Stock Exchange just over three months ago was to enable the group to make major global investments, such as Dermstore.com.

“Accessing capital through a London listing has enabled us to accelerate our growth plans and build out a global leadership position within the exciting beauty industry.”

In October, the group posted a +38.6% year-on-year revenue growth for Q3 with a +51.3%, year-on-year growth in online revenues to £320.2m. The Hut Group raised full-year 2020 revenue guidance to between £1.48bn and £1.52bn.

Moulding said: “I am pleased to report a strong period of trading in our first quarterly update as a public company, including an upgrade to revenue growth guidance for 2020. I would like to thank all our colleagues for their huge contribution to date. Our strong organic revenue growth across all divisions, numerous THG Ingenuity partnership deals, and the recent acquisition of luxury skincare brand Perricone MD, demonstrates our strategic direction and progress in the period.

“Our decision to list on the London Stock Exchange provides us with a strong platform to raise the profile of both Ingenuity and our Brands, and further supports their strong organic growth. Our acquisition strategy remains unchanged, with a focus to complement organic growth with brand IP and Ingenuity infrastructure additions.”

The Hut Group shares are trading +5.29% at 737.00 (1149GMT).

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