UK’s largest shoe manufacturer with a strong focus on comfort and service
|Year ended 31 January||2018
|Return on Capital Employed (ROCE)||5.9%||2.2%|
Hotter operates in the comfort footwear market primarily in the UK and US, where demographic changes offer significant opportunities for growth over the long-term. Following Electra’s purchase of the founder’s interest, the company has been able to invest in necessary initiatives to enable future growth. These are aimed at developing the brand and product to remain relevant to customers whilst investing in key operational areas to increase the efficiency and flexibility of the cost base.
2018 was a very challenging year for the business in which the well documented challenges facing the UK retail market were compounded by adverse weather over the key seasonal change periods in spring and autumn. Although the direct-to-consumer channel remains strong the business as a whole was not as resilient or flexible as was needed in 2018 and steps are being taken to accelerate the strategic change already planned. Ian Watson joined as CEO in March to lead this change and trading recovery.
The strategy in the shirt-term is to optimise the retail estate, renew focus on the core customers in the UK direct business, increase return from the US business and make the cost base more flexible. This is likely to result in a smaller but more resilient business which represents a solid foundation for growth.
CHIEF EXECUTIVE OFFICER:
EQUITY OWNERSHIP: 98%
MULTIPLE OF COST: 0.2x