RE: US money supply reducing - Quantitative tightening30 Mar 2023 09:43
Pleased Kelso went to Manchester for a tour and engage with Mould etc.. When you read Kelso recommendations it looks like it’s been written from this board.. Premium listing - Use RNS reach - Cash generation & also Share buyback (Not heard much of that in here but would put a rocket under SP -See below)
Given, in our view that THG's share price is undervalued, we urge THG to consider a share buyback programme soon after the pending preliminary results announcement. We note that THG maintains the authority to buyback up to 10% of its outstanding shares. As stated in the January 2023 trading statement, THG has cash on hand at year end of c.£470 million, with £170 million undrawn revolving credit facility, net debt of c.£200 million, reducing to c.£160 million upon receipt of £40 million of proceeds from non-core freehold asset disposals in H1 2023. Tailwinds from recent whey and transportation cost reductions will further improve cash generation. We think such a buyback would demonstrate the board's confidence in the business.