Boohoo doubles profits and grows sales by more than 50%

Fast growing young fashion etailer boohoo has almost doubled its profits in the last financial year, in line with expectations from analysts, while revenue was up by 51%.

In the year to 28 February 2017 the business achieved a pre-tax profit of £30.1m, up from £15.6m in the previous financial year. Revenue was up from £195.4m to £294.6m.

UK revenue was up 33%, while rest of Europe was up 50% (CER, up 44%) and rest of world was up 40%, but the US showed the strongest growth with an increase of 140%. Almost 40% of the boohoo's sales are now generated outside of the UK and it has increased its active customer base by 29% to 5.2m.

The business will shore up its position in the US further with its latest acquisition, which was the IP and certain assets of NastyGal, a deal which completed at the end of February. Just over a month earlier it finalised the acquisition of a majority stake in UK young fashion brand Pretty Little Thing which posted sales of £11.2m for the year.

Joint CEOs Mahmud Kamani and Carol Kane described the year as a "momentous" one for the Manchester-based business. "Both brands have huge potential and the acquisitions represent a step change in the size, structure and operation of the group. We are confident that our expertise combined with the strength and following of our new complementary brands will greatly enhance the group’s future growth and profitability," they said in a statement.

"The boohoo brand has achieved outstanding revenue growth and increased profitability margins during the year. We continued to grow strongly in the UK, our largest market, whilst international growth exceeded our expectations, particularly in the USA. Our customer proposition is proving consistently appealing," they added.

As well as the acquisitions the business has invested in infrastructure such as a warehouse extension, additional office space and a new web platform.