Member Info for Canary3

I Pencil.

Funnily enough after all my posts about not wanting RNs’s that IMO don't matter.

I think a 10 year contract expecting to produce 1.5 billion over the life of the contract.

And as Golden pointed out using the full range of services v Matalan.

Is material and personally i am very pleased that it wasn’t a sop to the people asking for much smaller deals to be announced.

Just looking at their results announced in July last year

Turnover just over a billion with 200 million of that on -line with stock delivers from warehouse and picking in store.

THG has been brought in to help increase that on-line turnover.

Sometimes I get the sense that some posters have a view that ‘its just Matalan’,

.i think over the next 5 to 10 years they could grow very nicely with THG’s help and will be a valuable partner for the company

There are at least two drivers that can improve margins in this space for ingenuity.

- It is not uncommon for businesses to get caught into the thinking ’thats what the customers pay, its a price driven product ‘ and i would contend that ingenuity and THG fall into that space.

The drivers i see are

1. TGL and his experience at BB, i think he will have challenged the board strongly about low margin business and encouraged them to think of how to improve them by adding value over other platforms.

2. The statement above form Maximo- it is saying that because THG have their own brands they can add value from day 1, they get whats needed, there is no need to have long and protracted education type meetings with a non -beauty provider.

It means THG move faster because they have deep expertise in the beauty business , Maximo are taking advantage of the full range of services that THG offer and of that expertise. IMO that expertise has a very arge value

I am sure Maximo want a one off payment for those services, IMO TGL will be pressing the board to up the margin as well as charging for those services.

Just a view on being more commercial and sometimes you need a view from outside to help drive it.

Looking on the bright side as ever..

Ian Smith, Maximo Group, commented:

"Aligning our digital strategy with THG Ingenuity's technology and operational capabilities will enable our customers to benefit from an enhanced shopping experience, from browsing on site, through checkout to delivery. As a brand owner, THG understood our ambitions from the outset, with Ingenuity's track record of re-platforming large beauty brands making them a natural strategic partner. We have been deeply impressed with the speed at which Ingenuity have delivered and their commitment to a true partnership from outset."



As Mandy Rice Davis commented, ‘he would say that wouldn’t he’

Nevertheless it pleases me!!

- On demand, the brief as i recall was to look at unprofitable territories and product lines , giving me the impression that it was going to be a reshape and refocus and spend time, money and energy trying to make it work. Instead they took the decision to close it, this for me shows that they are going to focus on what is most successful in the company and not waste time on the less successful parts. - This is what Balfour Beatty has done. It a more commercial approach to the business driven Imo by TGL and D sanders and signed off by MM.

Matalan- The launch after 18 months of work, is IMO a comprehensive endorsement of THg and its services, building significantly on an existing contract. This is especially good in that agreement was continued with after the financial restructure and ousting of the founder. It shows a huge vote of confidence in the company

- The new strategic partnership- its a 10 year deal with all things being equal, giving 1.5 billion pounds of revenue to THG, its high quality and predictable, we don't know the margin but again its huge vote f confidence and to aim to have it I’ve by the end of the 2nd Quarter shows the ability to get moving at speed.

The comments from both parties are extremely encouraging.

I have no reservations as famous chef once said

Gl to the minors.

Loss making division , there will have been a lot of management time and effort put into trying to turn it around turning, , then a lot of the same deciding whether to salvage parts or let it go.

Now the decision is made and communicated the outplacement teams step in and handle the issues, all that management time and effort , worry and indecision disappears and they can focus that on building the rest of the business.

It’s not just the cash.

It has been 6% of revenue for the last two years , so going backwards as it were, it seems the board decided to shut it at the meeting the other day.

TGL has been non execs chair of BB for the last two or so years, they have been focusing on and continue to focus on getting out of Low margin contracts.

They SP has risen and their results have been improving all the time.

I would say that TGL has brought some focus into the the strategic review and will show results in due course.

perhaps JD01 post explains why

Nobody is going to sell to PE on the cheap..IMO

Thats is not an issue for me

It was in the Q4 trading statement

This strategy is now delivering tangible results with the Group confirming that it is in advanced discussions to provide long-term software solutions for several significant enterprise clients, in addition to the expansion of its strategic partnership with UK retailer Matalan.

I just looked up 6 companies in the lower part of the Ftse 250

4 of them had RNS’s outside of trading results, Holdings in the company, director deals and so on.

3 were either acquisitions or disposals.

The other was a strategic partnership with another company to enter into Asia.

Big companies like THG don't issue RNS’’s for the type of things posters and Kelso are calling for , they are immaterial in the scale of things.

MM is acting Like a proper CEO as to RNS’s and IMO we are fortunate to get the insights we do from his Linked in post

He is being proper CEO

All IMO of course

PS why don't you have a look at a few ftse 250 companies at random and see what you think..

Me Too, onsolidground posted this list earlier on the other thread
Espa,
Christophe Robin,
Dermstore,
Illamasqua,
Perricone MD

All higher end

IMO even the dosiest of analysts will be thinking about the wholly owned brands...

IMO beauty is worth a lot.

Thought about MM’s post the other week about Espa and i wondered about the comparisons with ESPA which looks to be a premium brand. ( i also think now that that post was no coincidence), but i wear a tinfoil hat when in my study..

To my untutored eye the pricing for both is very similar, hard to actually compare like for like but a 55ml skin polish by spa is being sold for 24 pounds, and it gets very good reviews. Thats posh cream with bits in it that scarpes off the dead skin, smells amazing apparently.

Espa has 550 spas V 400 shops for Aesop. Both target the high end market , but of course the very top spas and the very top Aesop shops will be standout.

I could argue that ESPA has the edge with yachts and palaces as well as luxury hotels in the portfolio, although Aesop will sell more over the counter as it were.

Both create their own product as far as i can see, and of course THG has ingenuity to help along the way.

I would argue that ESAP will command the same sort of multiple stand alone.

How big is the turnover?

Even 5% of sales would give a decent figure for ESPA.

GL to the minnows

https://www.lookfantastic.com/aesop-geranium-cleanser-resurrection-and-reverence-hand-wash-bundle/12526368.html?affil=thggpsad-bundle&switchcurrency=GBP&shippingcountry=GB&thg_ppc_campaign=71700000088329918&adtype=&product_id=12526368&gclid=EAIaIQobChMItcTmla-Q_gIVkfftCh2P7wMBEAQYBCABEgLUVPD_BwE&gclsrc=aw.ds

They charge a fortune and get rave reviews, very high quality and appear to have a very loyal customer base. Therefore a very high premium for the company.

premium brand, premium rices and a premium valuation.

Couple of posts from one of the regulars

First Ever on THG

Please have some self respect and take the losses with dignity

Second post

I'm new here but straight away I can see your pain in your posts.

Please for your own credibility calm down. Your messages on facts that are incorrect or now addressed and are actually having the opposite effect to your intent. You are clearly hurt and your agenda is obvious and shouts out your pain.

I've just bought in and will be here for the ride up to high 200s before I re assess.

You know who you are....LOL

BTW when the MM and TGL bashing was in full throttle on the 17th of March when i posted that the Share price was
55p.

Now 69 p and the bashing is starting again...

Posted this on the 17th of March after endless MM bashing on the thread..

M has taken these actions in the last 24 months as far as i can tell,

- Recruited Sanders as a NED, asked him to run the project on splitting the company into divisions, and then appointed him CFO
- Kicked off a strategic review that has led to the decisions to , focus on ingenuity , nutrition and beauty , close down loss making areas, refocus ingenuity onto larger clients and partnerships, and has led to a 2000 head reduction in staff,(that review is still ongoing)
- Recruited the TGL and supported the revamp of the board
- Recognised that Nutrition was losing its way and instigated ( and probably mentored/oversaw) the brand revamp including a deal with Iceland that was three years in the making. ( and keeping it quiet)
- Invested in the writing of propriety software to drive Autostore, that has led to THG becoming a global partner upgraded from being a customer of Autostore, the New Jersey automated Facility about to come on stream
- Recruited Vivek to lead Ingenuity , that seems to be a very good action
- Moved JG aside to allow Sanders to run with the finances.
- obtained an additional line of credit on existing terms ( that would cost a lot more now)
- Oversaw the move of Softabnks holding the the QIA and him, he investing more money into THG shares a s result,

Thats just off the top of my head, i fear that posters that think he is useless as a CEO are very far off the mark.

Looking at the at amount of change and upgrading of senior staff as well as driving forward on the major initiatives as well as doubling revenue during those two years, in a difficult time is IMO an amazing achievement.

Thats why i am invested, if he can do the same again one the next two years, we will go very well from the SP.

GL

Rock if you think that you shouldn’t be investing here,

look at the recommendation

Publish these wins by RNS it is laughable.

So THG publish that have some product into two German Supermarket chains.

Analyst question- How does that move the nutrition dial revenue wise

Answer well about about a couple of thousand quid,

OH says the analyst what about Iceland link up,

Answer well we did about 4 million quid in the first two months

Analyst is that net to the bottom line

Answer Well no not quite

Analyst I see, ( goes back to the office , THG are in trouble there are doing RNs’s for pennies!!)

SP falls like a stone.

Like i said laughable and even i know they have 10 months figures ready for each division.

Laughable

Just in case you all missed it,

Kelso are bunch of opportunist and GL to them but they aren’t anywhere near the calibre of MM and TGL

I don’t
The people that have the most to gain from an increased share prices, MM and his charity. Followed by the big holders.

All the recent posts on Linked in are about showing that the three areas of the business are great businesses, and that the people that work in THG can either be graduates and start in the academy and have unlimited opportunities, and that any other employees that are bright and committed also have great opportunities and that nobody gets overlooked if possible if they have potential.

The post about the chap that started as driver now runs the contact centre and doing great after 10 years in the business.
The lady that ran the nutrition turnaround project and got promoted into beauty
The post on ESPA
The post on the launch into Japan with the chocolate drinks
The post about moving into Europe
The post about 1 million sales in iceland only contained by supply issues
The posts from America about new Jersey
The post about Autostore
The post about tech awards shortlist.

All are not material individually in a 2.2 billion business says MM and IMO most of the investment community would agree with that.

But Kelso say, you should RNS these things not post on Linked in, IMO they are drawing attention to the growth opportunities and how well the business is moving forward. Not really saying that they should be RNs’d

Look at Vivek ‘ Ingenuity is misunderstood it has driven the growth in THG.

IMO MM and his ‘rants ‘ about the LSE are all about we are undervalued ...

But i like MM and TGL, I think they are fantastic business men and i think they will stun the investment community over the next couple of years.

Kelso are bunch of opportunist and GL to them but they aren’t anywhere near the calibre of MM and TGL