Our live Investing Matters Podcast Special which took place at the Master Investor Show discussing 'How undervalued is the UK stock market?', has just been released. Listen here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Btw Crafty remember calling me a liar more than once when I said nutrition had not started the year as hoped and was finding sales growth challenging ?
I suppose Jefferies who recently met with the company and reported the same as I stated over a month ago are also liars ?
NO
Ingenuity focuses on the USA with no THG in branding.
Ingenuity Commerce also has a new chairman who has been brought in to support plans to accelerate growth in core markets including the US.
https://www.thg.com/news/entrepreneur-alistair-crane-becomes-new-ingenuity-chairman
What a start to Shoptalk US 2024!
https://www.linkedin.com/posts/ingenuitycommerce_shoptalk2024-ingenuitycommerce-williamsracing-activity-7175529126106148864-CDlD/?utm_source=share&utm_medium=member_android
https://www.linkedin.com/posts/ingenuitycommerce_ingenuitycommerce-shoptalk2024-activity-7175655010532249600-crin/?utm_source=share&utm_medium=member_android
Is Ingenuity Commerce going to be the division to IPO in USA?
Inly profit will count as no matter what is number but if they cant show profit and lose money on this share will drive down . They need to show return on investment as a lot monet have been spent but CEO liketo spending more for what? He should out and let other management it better . Yes he is us control 70 % share show stay at home enjoying retirement.
LD1973, you can read into this what you like….and we won’t know the truth.
There are multiple reasons for leaving immediately….and many still involve continuing to be paid by the company.
Anyway, what would you replace it with on LinkedIn? Whatever the reason for him going, it’s probably in his interests to leave his LinkedIn profile unchanged until he has a new post confirmed. My point being, It’s a social platform, it’s not a legally binding statement of who/what you are. It essentially means very little in the scheme of things. Maybe he’s sunning himself with Annacotte Steele and can’t be bothered changing it….
THG is investing in TikTok organic growth thanks to their THG Society Dept
https://www.linkedin.com/posts/thg-society_thgsociety-socialmedia-influencingtips-activity-7175772018007515136-10W4/?utm_source=share&utm_medium=member_android
SECRETS TO SOCIAL SUCCESS
Yesterday, we had the pleasure of hosting Alannah and Victor, a dynamic duo in both life and social media, at the THG Offices. They shared their journey to success, from their university studies to navigating the corporate world while managing content creation alongside their 9-5 jobs. Eventually, they took the leap to pursue social media full-time, now running three thriving accounts – one individual account each, along with a joint couple account.
Here are the key takeaways from their invaluable insights on thriving as influencers: 👇
1️⃣ Quantity over quality is crucial in the initial stages of audience growth; consistent posting is paramount.
2️⃣ Effective time management is essential; allocate dedicated time for content creation.
3️⃣ Documenting trends within your niche increases your chances of going viral.
4️⃣ Regularly analyse post insights to identify successful content and resonate with your audience, guiding your content creation strategy.
5️⃣ Tailor your content to suit the nuances of each platform; understand your audience's preferences. For instance, adapt your content format based on platform requirements – from quick aesthetic videos on Instagram to green screen tutorials on TikTok and in-depth guides on YouTube.
THG BEAUTY has 3 times more Tiktok followers than Boots UK
THG Beauty Tiktok followers 302k
Boots Tiktok followers 103k
https://www.linkedin.com/feed/update/urn:li:activity:7175100046814662656/?utm_source=share&utm_medium=member_android
This is what happens when TikTok is your entire marketing department.
In 2018, household cleaning product, The Pink Stuff:
Was only distributed in Britain (and only by 2 retail chains).
Production line operated for 2 hours every month.
Annual sales: $30 million.
It then picked up organic attention through cleanfluencer, mrshinchhome, who promoted the product to her 5 million+ followers.
Today, The Pink Stuff:
- Has been viewed more than 2 billion times on TikTok.
- Production now runs 3 Pink Stuff lines.
- Workforce has more than doubled.
- Sold in 55 countries.
- Annual sales: $135 million.
If you know TikTok, you’ll know that this isn’t surprising.
Yorek - if he’s been ousted, why would they want him on garden leave? Also if this was the case, they would make an announcement that he’s leaving the business in 6 months, wouldn’t they? They said he’s left immediately.
Yes, only 14% of its total 2023 revenue came from offline but recently MyProtein has invested in more strategic retail partnerships where the functional CPG brand places a limited (or exclusive) SKU range as part of bigger demand generation strategy.
https://www.linkedin.com/posts/jschallconsulting_strategy-trends-markets-activity-7171565154071900160-h-jS?utm_source=share&utm_medium=member_android
But it's a new dynamic retail investment that signals MyProtein wants to drop the “online” part and simply become the world’s largest sports nutrition brand.
I see today that Unilever is concentrating on 4 separate groups including Beauty & Wellbeing interesting?
The separation of the ice cream business will allow Unilever, it said, to become a more focused company, operating across four main business groups: Beauty & Wellbeing, Personal Care, Home Care, and Nutrition.
So we now have 3 comps in the Nutrition sector looking to IPO, or hook up with partners.
Applied Nutrition
Revenue £61m
Profit £18m
Valuation - Looking to IPO at £1000m
https://www.hl.co.uk/free-guides/applied-nutrition-ipo-alerts
https://www.proactiveinvestors.co.uk/companies/news/1040158/jd-sports-backed-applied-nutrition-mulling-1bn-london-listing-1040158.html
https://www.sharesmagazine.co.uk/news/market/1708441848606463400/press-aj-bell-founder-to-join-applied-nutrition-ahead-of-ipo-sky
Huel
Revenue £184m
Profit £4.7m
Valuation £440m - was looking to IP at £1000m
https://www.ft.com/content/5ac8ac99-ef6f-40b3-839a-2452389835d7
THG Nutrtion
Revenue £660m
Profit £100m
Valuation MC c259m
https://www.proactiveinvestors.com/companies/news/1043203/thg-growth-to-be-fuelled-by-partnership-analysts-expect-1043203.html
If these were football teams Applied Nutrition would be a League Two side, Huel would be a Championship side and THG Nutrition would be a Premier League side.
Why? THG Nutrition has 10x the revenue & 5x the profits of Applied Nutrition and 3x the revenue and 20x the profits of Huel.
Comps like Nestle are now being bullied by shareholders into focusing more on healthier brands.
https://www.foodbev.com/news/shareholders-challenge-nestle-to-increase-sales-of-healthy-foods/
Who would be your partner of choice given the 3 companies on offer?
Maybe this is why THG Nutrition is attracting so many offers. Remember it has had more bids than any of the other divisions
Welcome back Crafty..it’s been a bit bleak on here without you. Interesting that 2 US Banks are beating the drum, suspect they are sniffing around US orientated advisory work, although Jefferies hinting at partnerships as opposed to US listings. How do you access to the Telegram group, and is it any good or are there usual suspects posting constant negativity on there
Nice work @crafty...bring on the sunshine
Ah you're back Crafty after a brief hiatus....
THG PLC (LSE:THG) (https://www.proactiveinvestors.co.uk/LON:THG/THG-PLC/) shares are motoring today and and there could be more to come according to analysts at Bank of America.
The bank has set a 125p price target and reiterated a buy rating, helping drive shares 5.2% higher to 69.08p.
BofA noted while the revenue decline in recent first half results was greater than expected - especially in the Beauty division - the worst now appears to be behind.
In the UK, the two largest headwinds - falling online penetration and low consumer purchasing power - began to show signs of improvement for the first time since 2021 this summer, it pointed out.
“Management called out positive growth in Beauty starting in August, and we expect group-level growth to turn positive again in 4Q23 as Beauty improves with manufacturing revenue picking up again,” the broker said.
BofA sees reasons for optimism at all three core divisions.
In addition to a return to positive growth in August, the Beauty division should see improved margins in the second half of the financial year as the margin-accretive manufacturing business ramps back up following destocking throughout much of 2022 and 2023.
Liberium 16/1/24
Analysts at Liberum welcomed Tuesday’s trading update and contract win with an award of their own, placing the stock as one of the top picks for 2024.
The UK broker believes margin recovery in the THG Nutrition business (https://www.londonstockexchange.com/news-article/THG/q4-trading-statement/16290089) will allow it to enact faster revenue growth in the upcoming full-year, with its Beauty division also echoing similar changes.
Additionally, the experts believe the Holland & Barrett win will help the Ingenuity arm springboard into 2024, with more deals believed to be in the pipeline.
Liberum targets a 220p share price for the stock, representing a 205% premium to the current 72p trading price.
THG's 2023 performance came in as expected, with all divisions getting set for growth, Liberum analysts Wayne Brown and Anubhav Malhotra say in a note. The e-commerce company--known as the Hut Group--reported a robust margin recovery in nutrition, which enables a return to faster revenue growth in 2024, they say. The beauty sector registered a return to growth in all areas and also a robust recovery in margins, the analysts highlight. Added to that, new contract wins for its Ingenuity platform will compound into 2024 with a solid pipeline, they say. "2023 saw material improvements in governance and now with expectations being managed tightly, confidence in guidance and the outlook should underpin share price recovery," the analysts say. Shares are up 9.8%.
Jeffries reiterate buy 105 (95)
THG PLC (LSE:THG) (https://www.proactiveinvestors.co.uk/LON:THG/THG-PLC/) is likely to enjoy growth across all of its divisions this year, analysts have forecast, with growth expected to be fuelled by strategic partnerships.
“Although a divisional IPO has been mooted, we see a strategic partnership as potentially more likely, opening up new growth and synergy options,” Jefferies said in a note on Thursday.
This could well involve a minority stake in either the e-commerce retailer’s beauty or nutrition divisions, “providing upside for the investing partner”, said the bank.
Jefferies analysts said that there was “clear confidence” in THG’s growth this year, having met with the firm’s management in recent weeks.
Though the shares have fallen nearly 20% since the start of the year, Jefferies said it saw material upside to a share price target of 105p, which is itself up 75% on Wednesday’s closing value.
This follows THG’s shift to higher-margin sales since Lucy Gorman took the helm in August, alongside its beauty division’s return to positive territory in the final quarter (https://www.proactiveinvestors.co.uk/companies/news/1038442/thg-breaks-even-as-revenue-growth-returns-late-in-the-year-1038442.html) of last year and the Ingenuity platform’s new focus on enterprise clients.
THG’s nutrition wing is poised for a more challenging start to the year, Jefferies acknowledged meanwhile, adding that “we see the group's confidence in its 2024 growth agenda as notable”.
Jefferies reiterated a ‘buy’ rating for THG.
https://www.proactiveinvestors.co.uk/companies/news/1043203/thg-growth-to-be-fuelled-by-partnership-analysts-expect-1043203.html
Courtesy of SRS over on Telegram.
Just a reminder of THG broker sentiment, analysts have been increasing their target prices over the last 4 months with the average among the ten who cover at 101.4p
Current THG Share Price 57p
https://www.marketscreener.com/quote/stock/THG-PLC-112544292/consensus/
LD1973, if Vivek is on gardening leave, he is still an employee in that position…..
I find it odd that Polishcap keeps posting negatively when he has clearly stated that he no longer has a shareholding. I'd understand if he had a short CFD trade on, but otherwise it's just weird.
Polish, I remember you not long ago being THG's most avid supporter and promoter, I'm sure you will be again when you switch bets 😉
Why hasn’t Vivek’s LinkedIn profile changed to reflect he doesn’t work at THG anymore? I do find this strange especially if you’ve been given the boot. The first thing you’d want to do is disassociate yourself from THG.
So desperate to reference Unilever on here
Can’t even ride off Trustpilot which has more than trebled since September
You can’t put any value on this because of moulding and the longer this lingers it’s only heading one way
Talk is so cheap that’s all it’s done for years
Redundancies largely expected due to replacement of their successful automation which to be fair has always been their strategy to be competitive. Ian Mc, that was coming and it's a shot that's been called for on here since the bid debacle. Vivek obviously not cutting the mustard and replaced by someone more suitable although not yet in title. Any Homebase loss is due to their own failing business. As for Jefferies prediction of a poor start to nutrition, well, let's wait for the actual numbers.
AGREE great opportunity.its very well positioned