Hobbs aims to grow as sales soar

SALES are surging at Hobbs, the upmarket fashion retailer bought out by its management team in a £30m deal just over a year ago.

Managing director Nick Samuel said operating profits are currently running ahead of group expectations after double digit sales growth in the first quarter, to the end of April. The strong sales performance has continued into May.

Hobbs was founded in Hampstead in 1981 by husband and wife team Yoram and Marilyn Anselm. In December 2002, the business was bought by the management team, backed by Barclays Private Equity. BPE holds 80% of the shares, with the remaining 20% held by the management.

Profits for the 53 weeks to end-January, its first full year since the buyout, were virtually doubled, at £8.5m pre-tax, and look set for a further big leap this year. Sales were ahead by 32% to £51.6m and the business is making early debt repayments of £1m. Operating margins surged to 16.3%.

Samuel said: 'The founders did a tremendous job, creating a business worth £30m. But now it has moved on to a new phase.' He has no plans to float or sell the company for the next couple of years at least.

'We are only 15 months into what was a five-year plan, so there is no pressure for an exit.'

Plans for the current year include expansion overseas while in the UK the 54-strong chain will see new outlets added in London's Regent Street and Brighton.