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Looks like the ingenuity thing in the update might be the real deal, thats a lot of jobs that pay very good wages and benefits..

This is where Software as a Service ( if it exists) could be hosted from, a key issue of course will be security and if they are going into SAS, they will be recruiting for this area for sure.

Big margins as you say.

This interview article published on the 8th dec 2022 given by Vivek.

Talks to the ingenuity piece in the results, this is the future growth for the company IMO, and he knows his stuff.

https://www.theretailbulletin.com/general-merchandise/interview-vivek-ganotra-ceo-of-thg-ingenuity-08-12-2022/

So the strategic review is aimed at getting focus on the three core areas, the thinking as they are the future for the company.

We know whats going on in ingenuity and the first half results will let us know bit more about progress, unless news drops.

On beauty and Nutrition clearly there are issues to be resolved. The update says basically strong performance in Primary territories that have localised delivery infrastructure ( whatever that means)

Ergo there has been poor performance non primary areas that lack localised delivery infrastructure.

There will be some working parties reviewing this and putting forward plane to improve performance these areas. Whether that being more attention being paid to running those areas, plans to cut non-profitable areas and so on.

Growth in these Nutrition and Beauty IMO will now be difficult because THG are already big players.

On staff reductions ,there has been recruitment in the digital areas whilst reducing overall numbers significantly, that points to the ingenuity area gearing up as (hopefully) large customers get closer to onboarding.

Overall the review seems to charging along, and whilst TGL is off the Xmas card list at the moment i think you can see his input into this.

IMO its difficult when you haven in growth mode for as long as you can remember, moving to this change of more considered action in tough economic circumstances

So IMO , MM and the board will be benefiting from TGL input and i also believe that Vivek G will be the essential element in the future of the company.

I agree, however even his die hard supporters will be aghast if nothing comes this.

I find those statements very strong.

If they do that the SP will fly, SAS generally has very high margins and it would be huge endorsement of the software. That would be very exciting.

Thats what i said as well...but they are IMO extraordinary things to say

That should TGL is off the list ,maybe THG as well at the next update!!

I copied the ingenuity bits from the update, reading then together it implies

-That they have been in direct competition with the very big tech companies to win major contracts.
- That they are preferred choice in one two of them and are close to finalising them, they are long term contracts.
- Margins and quality of revenue will be significantly higher than current clients and that will result in 1 billion being added, so expectation of higher and better earnings on a long term basis from ingenuity should be factored in.

Now if TGL had intervened before the earning statement and prevented another profit warning on yesterday release (ie getting it out earlier) i would be confident that the segment about ingenuity and clients can be trusted.

As everyone else has said, can it be trusted?

If they come to fruition MM will be feted..if not....

I’m going to hold for at least the next quarter to see what happens, if these comments come to pass, the growth IMO will return to the Analysts valuation.

THG is now off the Christmas card list..

The comments from the statement below.

· THG Ingenuity gaining momentum following the pivot to focus on higher value and higher margin contracts, with further major contracts close to agreement, building upon the recent expansion of the Matalan strategic partnership.

· In Q3 2022, the Group announced a re-positioning of THG Ingenuity to focus on larger, higher revenue and higher margin clients with high-quality recurring revenues. Exiting a number of smaller contracts while pausing additional lower value partnerships has enabled THG Ingenuity to fully capitalise on larger scale, more complex, long-term opportunities.

· 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.

· During 2023, the Group expects to add over £1 billion incremental GMV to the Ingenuity platform.

"In a year that presented numerous challenges across the world, I'm proud that the THG team has delivered another record revenue performance at £2.25 billion. Amongst many highlights, I'm especially pleased with the progress of Ingenuity, successfully competing with major global technology giants to transform digital operations for global retailers and brands.

They also say in the trading statement that the bigger contracts will be higher margin, and IMO they need to be 4 to 6 % is low.

IMO the Golden share is completely irrelevant. Fundamentally in a take-over situation it is either agreed or hostile.

IMO MM with the QIA and other long term holders will block any hostile takeover so it will have to be agreed. To be agreed it will need to be a significant offer, if it was undervalued at 1.70 with the progress being made since then we can all think of a number, and we most likely be wrong.

IMO a deal will happen , not necessarily a full takeover, but if it was a full takeover we will all be smiling i am sure.

I was wondering who the three distributors are that provided the false sales, one has a shared warehouse with REV B.

Two directors 44% shareholding needs to be resolved before re-listing IMO

Anybody reading this part of the RNS ( below) in conjunction with Point 2 regarding revenue recognition could be forgiven for thinking that illicit payments have been made by the individuals mentioned.

The statement is headed Personal Loans made by directors they made the loans to the three distributing companies accused of inflating sales as well as their affiliates ( my reading some sort of middleman ). As well as employees of REVB and certain non -execs of REVB that are no longer with the company.

These directors still own 44% of the company, and so almost certainly control the company in any shareholder vote, that IMO needs to be sorted before re-listing. I doubt any loan arrangement will be made by any bank whilst they remain shareholders. The opening sentence is interesting I think the loans to Non execs and the the three distributors are more serious.

The statement below

'BDO raised concerns around personal loans made by Adam Minto and Tom Allsworth to an employee that appeared to be unusual and required investigation.

The investigation identified a number of other personal loans made by Adam Minto to a number of senior managers of the Group and certain of the Group's non-executive directors (at the time), as well as loans from Adam Minto and Tom Allsworth to the Distributors or their affiliates (as detailed in issue 2 above). None of these loans had been disclosed to the Revolution Beauty Board at the relevant time.

The current Revolution Beauty Board views these loans as unacceptable business practices that should not have occurred and will not be repeated.’

It will all come out in the wash

Ive been following with interest , THG holder.

IMO the two directors have been caught out and will face prosecution, until they are no longer shareholders, IMO, new money will be difficult to raise.

I agree that Boo will be all over them trying to force a sale from at least one. That will give boo almost enough shares for unconditional takeover. If only one sells then they will need to buy some more but if one sells i think both will sell.

But of course i imagine there will be many options being discussed.

It's interesting , when MM set out the ‘protect the customer strategy’ and that THG would insulate them to some extent against the rise in commodities, a lot of posters and pundits thugs he was being a fool, part of that strategy was the belief that whey and other commodities would fall and so customers and THG would do well.

Well that has proven correct faster than imagined.

A funded bid at 1.70 was turned away, it was reported in the Times and on Bloomberg that it was real and credible bid, but funded by debt.

TGL bought heavily after 3 months in position (unheard of) at 86p and then another 1.25 million shares at 41p.

MM has ben buying all the ay down and not sold

SW bought 5 million.at 39p ( happy chappie i would have thought)

Why would we think the SP is being manipulated UP? I don't believe it was manipulated down it was selling that did that.

I expect the share to rise to at least 1.70 in the next year.

Bullish bottom feeder here.

Thats basically the same as the SoftBank deal with ingenuity...Justice is on the money IMO

Apologies article

https://www.aiimi.com/insights/boohoo-group-selects-aiimi-insight-engine-to-deliver-advanced-dsar-and-data-deletion-capabilities

I have been having look around at what Asos and Boohoo do for system and data integration, the both have commissioned new projects in the last couple of years, i thought this initiative for Boohoo sets out the issues that are faced.

This new project talks about integrating and making redundant 10 separate systems that currently provide date.

All companies doing DTC spend a lot of money on systems and data it is core to their offering.

Asos and Boohoo are miles ahead of boots as well. A key issue for them is that as they have grown they have built on systems that have been in use for many years, hence they are now looking at new approaches to data integration.

Imagine what it's like for Nestle or P&G . ( hence the new approach from Nestle)

This stuff is difficult and expensive.

IMO Ingenuity is going to be a big winner, looking at Boots and the case studies their Automation is still behind THG, especially in terms of end to end processing , including ( probably the most important) the data produced in real time from end to end.

The capability / future proofing of the systems from the investment in Ingenuity is pretty clear. As the focus on DTC increases the IMO ingenuity will be a winner.

Boots will have to up their spend significantly to get to a level playing field

It's because of ingenuity that the IPO was massively oversubscribed, and IMO the growth of both Beauty and Nutrition would not be so impressive without those businesses being supported and serviced by Ingenuity.

It's much more than just getting the goods out of the door.

there are a few case studies on line about boots push into automation on line, using 3 different companies, obviously doing the job. for them in terms of getting stuff out the door, whether the need or want something more integrated will be being debated .

To me it currently looks like a patchwork rather than a single source solution.

IMO they will either be working on a fully integrated solution or looking to source one.

IMO