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What?? Not a bad trading update at all still move SP south?? Good luck all....
Mcgart,
I wasn’t saying THG should be £3B - I am a holder
Fully agree re corporate governance etc
Just pointing out there will be a tussle between
bears & bulls due to a £2B valuation cap between the two based on current market valuations of ‘peer’ quoted companies, I’ve no idea which way it will go short term - next few months
Continuing to impress with high growth numbers. To be fair to the board and MM, they’ve acted immediately to address Corporate Governance questions… and acted immediately to provide more KPIs and detail on Ingenuity. Stating that the inflationary environment and HGV crisis is not crippling them (like it is to others) because of good controls and management… weathering a huge storm in the industry.
They seem to have learned the harsh lesson from only a few weeks ago. Very experienced non-exec appointment from a large shareholder… new independent non exec chair will only add more credibility. Clowns here (with ulterior motive of course) suggesting core valuations of £3bn on almost 2bn annual revenues rising at a rate of 30-40%, trading today at almost half price from the last year SP average. Many of us who have held firm over a painful 6 weeks still see the upside. Thg revenues taking their own protein shakes..
Hi Joner
Good to debate stuff - yes invested but weighing up to purchase more or sit tight, just hold what I have?
Think we have to put aside the historical valuation and look at the market valuations today, THG is subjective and tbh I am not too sure which way the valuation will go short term - next few months
I do like the Company / beauty sector especially and the vertical model
Oke - they paid c 2x for cult and Dermstore which didn’t have the same market position or growth as THG beauty. THG nutrition is the largest online retailer of advanced nutrition.
3bn?!
I would be interested to know whether you’re invested here.
If the market places same value as other online ?
£2B for core business (1X Rev )
£1B Ingenuity
£3B tops ( market cap today £4B)
Will be interesting to see who wins this tussle, the bulls or bears, £2B value gap between the two forces - based on the markets current value for web site business’s / SaaS ARR
Personal take.
Annual pro rata revenue of £2B is very good but will the market apply a valuation above 2X to the m/cap ?
2X seems as good as it can get in todays market place, not complete like for like but other multi £billion t/o online quoted Plc’s range from 30 weeks valuation to 52 weeks
THG is 100 week plus
£54M ARR for Ingenuity, we could say 20X Rev
That gives us £5B m/cap top end sum of the parts.
Feel that’s a top end valuation today
Solid numbers
I love the piece around how ingenuity has created for Cult 30% uplift in conversion rate and 6% increase in average order size - that is really impressive- perhaps that’s where SoftBank see the value that ingenuity brings to the party.
Yes ... 38-41% was forecast, so it's right in the mix. There is more clarity on Ingenuity revenues. On top of that we now have a Softbank employee on the THG board. So it's all very positive. I also liked the fact that in an inflationary environment they've been able to control costs through technology. For me, it was very positive.
Yes great update, should be a good day.
Appointment of new chair soon and could fly again.
Maybe see some more TR1s now of increase holdings.
The figures look great but this is my first update as a shareholder, does it meet the concensus of Others?