Boohoo shares soar after firm raises £50m for new warehouse
Boohoo shares rocketed on Thursday after the firm said that it had raised £50 million to help fund a new warehouse in a bid to keep up with soaring demand.
The cash, raised through a share sale, will be put towards a £150 million "automated super-site" which will provide Boohoo with more than £2 billion of sales capacity.
The online fashion retailer placed 22.7 million shares at 220p per share as part of a process that also saw co-founder Mahmud Kamani, along with his siblings Rabia Kamani and Nurez Kamani, rake in £80.5 million after offloading 36.6 million shares.
In a trading update announced alongside the share placing, Boohoo said that sales in the three months to May rose 106% to £120 million.
The firm also upped its revenue expectations by 10%, with sales tipped to grow 60% this year.
Shares rose more than 7% to 237.2p in morning trading.
Boohoo's recently acquired US fashion firm Nasty Gal and rival fashion website Pretty Little Thing have both helped to drive revenue at the group.
Joint chief executives Mahmud Kamani and Carol Kane said: "Our performance in the first quarter has been very encouraging across all brands and geographic regions.
"While it is early in the financial year, Boohoo continues to perform well and Pretty Little Thing delivered exceptionally strong revenue growth in the first quarter as it continues to expand its young female customer base.
"Nasty Gal has made a promising start since we acquired the brand, with revenues growing strongly month-on-month, as we increased the product range."
The retailer will also embark on a second extension to its Burnley warehouse, which will provide it with £1 billion of sales capacity.
Last year, pre-tax profits rose 97% to £30.9 million, while revenue also soared 51% to £294.6 million.