Ben Richardson, CEO at SulNOx, confident they can cost-effectively decarbonise commercial shipping. Watch the video here.
THG targets US float for Myprotein nutrition business
Activist investors are pushing chief executive Matt Moulding to spin off the division
By Luke Barr 15 October 2023 • 3:12pm
THG, the former British tech champion, is considering plans to list its Myprotein nutrition arm in the US.
The company is understood to be eyeing the move as activist investors push for chief executive Matt Moulding to spin off the division.
Earlier this year, Kelso Group increased its stake in THG to 8m shares and has publicly recommended that Myprotein, which specialises in bars and drinks for gym-goers, be separated.
Any move to list the division will not take place imminently as market volatility continues to halt IPO activity.
However, ambitions to take THG’s nutrition division public will raise eyebrows given the company’s well-documented difficulties since it was listed on the London Stock Exchange in 2020.
The company, based in Manchester, also owns beauty brands Lookfantastic and GlossyBox.
THG’s share price has plummeted more than 90pc since its IPO, and Mr Moulding said the listing was a “mistake” that “just sucked from start to finish”.
The company’s valuation has sunk from around £6.5bn in September 2020 to around £850m currently.
THG had previously touted an IPO for its THGBeauty brands, although it is understood from sources close to the business that nutrition is now the most likely candidate.
In 2021, the company said a “separate listing for THG Beauty will position the business very well to focus investment in its key growth areas, including own-brand portfolio expansion.”
Revenues across nutrition rose to £675m last year, up from £659m in 2021. Across the entire THG business, formerly known as the Hut Group, turnover hit £2.2bn.
Any move to the US will also spark fresh questions about London’s ability to retain publicly listed businesses.
Mr Moulding’s complaints surrounding the Square Mile have coincided with a string of high-profile companies ditching London for New York.
Cambridge-chip designer Arm is the most notable loss to London, which spurned ministerial advances to complete a $68bn listing in the US last month.
There has been growing speculation regarding THG’s listed future over the past year, particularly after the company held talks with private equity giant Apollo over a possible takeover.
The discussions came to an end in May after THG said Apollo undervalued the business.
THG declined to comment.
Probably just end up being a MS solution with AI added, like most other MS products, Ingenuity slowly mothballed. I mean it's a get out opportunity.
Spin off Ingenuity, then what remains adopt some other software. Wouldn't put it past him.
#putuporshutupmatt
GLA
So is this really an admission, in some way, that Matt has not been very good at his job, oh no, sorry wait, it's an admission that the people he employs are not so great, never himself of course!
#putuporshutupmatt
GLA
Shall I wire my 15% to Nigeria?
#putuporshutupmatt
GLA
FYI: https://www.placenorthwest.co.uk/retailer-relocates-to-100000-sq-ft-in-cheshire-after-thg-sale/
Apologies if previously posted but I've not been around much lately due to work. Rlated but not if you know what I mean. Just came across it whilst trying to get behind the paywall of the more recent consortium react news article, no luck at the moment with the paywall.
#putuporshutupmatt
GLA
I agree OSG, without trying to read too much in to the deal falling through, it may simply be held up with revisions required before all parties are happy? However, whichever way this material change in circumstances has arisen, and the impact of a delay and/or complete fail in sale, one might assume whatever comes next should be better for the 35% in realizing a higher SP, albeit when that will be who knows?
#onwardsandupwards
GLA
Full Article:
A sale of a business park owned by THG boss Matthew Moulding, which also houses the ecommerce group’s headquarters, has fallen through. The ecommerce group, which runs websites Lookfantastic and Myprotein, is a tenant at Icon Business Park in Manchester, ultimately owned by the THG co-founder. Moulding Capital Limited had been in talks with property company ICG Real Estate to sell the business park but no agreement was reached, according to two people familiar with the discussions. For a transaction to proceed, a prospective buyer would need an approval from Warrington Borough Council to novate a £128mn loan. The Icon complex is used as a security for a £128mn portion of a £202mn loan the Labour-led authority gave to the group of companies controlled by Moulding in 2020, according to official documents. In July, the council cabinet initially approved a potential novation of the loan to ICG, which subsequently did not proceed with a deal. The approval was criticised by Conservative councillor Mark Jervis, who said the cabinet had failed to properly scrutinise “flawed and erroneous arrangements” it had made when it looked at the novation loan. “It is time for Labour to reduce its enormous debt mountain,” he added in a press release earlier this month. “The Labour cabinet is totally ill-equipped to make decisions on this debt.” A Warrington Borough Council spokesperson said: “Cabinet approved a potential novation of an existing loan. However, for this to work it required the agreement of the council and two other parties. These agreements were not reached and therefore no novation was required.” “The change is simply a movement in the commercial view of the interested parties, and not a U-turn,” they added. THG, Moulding Capital and ICG declined to comment. THG is unaffected as a tenant by the sale to ICG falling through. A sale to another party could still materialise. Over the past decade, UK local councils have made large investments in a variety of commercial ventures, often taking on significant debts, in an effort to shore up budgets hit by cuts in central government funding. The pressures on councils were highlighted last week when levelling-up secretary Michael Gove announced that he would appoint commissioners to take over the day-to-day running of Birmingham city council, after the local authority declared itself in effect bankrupt. Formerly known as The Hut Group, THG was hailed as a future star of the UK tech industry when it listed with a valuation of £5.4bn in 2020. However, a string of profit warnings and concerns over its corporate governance have blighted its life as a public company. THG has beefed up its board and Moulding has relinquished the chairmanship and his “golden share” rights in an effort to ease investor concerns. Moulding has often criticised what he regards as unwarranted attacks on his business by the press and City analysts.
End bit of the article:
...........what he regards as unwarranted attacks on his business by the press and City analysts.
GLA
This is the interesting bit for me:
"A Warrington Borough Council spokesperson said: “Cabinet approved a potential novation of an existing loan. However, for this to work it required the agreement of the council and two other parties. These agreements were not reached and therefore no novation was required.” “The change is simply a movement in the commercial view of the interested parties, and not a U-turn,” they added."
#whythechange
GLA
Https://www.ft.com/content/d6176bee-716e-4ce1-a286-0e592dc29143
6 Hours ago by Laura Onita
A sale of a business park owned by THG boss Matthew Moulding, which also houses the ecommerce group’s headquarters, has fallen through. The ecommerce group, which runs websites Lookfantastic and Myprotein, is a tenant at Icon Business Park in Manchester, ultimately owned by the THG co-founder. Moulding Capital Limited had been in talks with property company ICG Real Estate to sell the business park but no agreement was reached, according to two people familiar with the discussions. For a transaction to proceed, a prospective buyer would need an approval from Warrington Borough Council to novate a £128mn loan. The Icon complex is used as a security for a £128mn portion of a £202mn loan the Labour-led authority gave to the group of companies controlled by Moulding in 2020, according to official documents. In July, the council cabinet initially approved a potential novation of the loan to ICG, which subsequently did not proceed with a deal. The approval was criticised by Conservative councillor Mark Jervis, who said the cabinet had failed to properly scrutinise “flawed and erroneous arrangements” it had made when it looked at the novation loan. “It is time for Labour to reduce its enormous debt mountain,” he added in a press release earlier this month. “The Labour cabinet is totally ill-equipped to make decisions on this debt.” A Warrington Borough Council spokesperson said: “Cabinet approved a potential novation of an existing loan. However, for this to work it required the agreement of the council and two other parties. These agreements were not reached and therefore no novation was required.” “The change is simply a movement in the commercial view of the interested parties, and not a U-turn,” they added. Recommended News in-depthUK local government finance Financial ‘jaws of doom’ threaten English councils as cost pressures mount THG, Moulding Capital and ICG declined to comment. THG is unaffected as a tenant by the sale to ICG falling through. A sale to another party could still materialise. Over the past decade, UK local councils have made large investments in a variety of commercial ventures, often taking on significant debts, in an effort to shore up budgets hit by cuts in central government funding. The pressures on councils were highlighted last week when levelling-up secretary Michael Gove announced that he would appoint commissioners to take over the day-to-day running of Birmingham city council, after the local authority declared itself in effect bankrupt. Formerly known as The Hut Group, THG was hailed as a future star of the UK tech industry when it listed with a valuation of £5.4bn in 2020. However, a string of profit warnings and concerns over its corporate governance have blighted its life as a public company. THG has beefed up its board and Moulding has relinquished the chairmanship and his “golden share” rights in an effort to ease investor concerns. Moulding has often criticised what he
Matt would probably say it was the naked shorts.
#saleornosale
GLA
SOS SOS SOS SOS....CALLING KELSO........SHOW YOUR HAND SPARTA..........MAKE YOUR MOVE INSTITUTIONAL INVESTORS...........MATT OUT......MATT OUT.....MATT OUT......MATT OUT......MATT OUT.....MATT OUT......MATT OUT......MATT OUT.....MATT OUT......MATT OUT......MATT OUT.....MATT OUT......MATT OUT......MATT OUT.....MATT OUT......MATT OUT......MATT OUT.....MATT OUT......MATT OUT......MATT OUT.....MATT OUT......MATT OUT......MATT OUT.....MATT OUT......MATT OUT......MATT OUT.....MATT OUT......MATT OUT......MATT OUT.....MATT OUT
#mattoutmattout
GLA
Ok Mattychild you'll get a come back from me, not a rise!
You know nothing of me or my reasoning behind my rant. I do believe Matt has a plan, but it's one that is beneficial for himself. We all know a low bar is of intrinsic value to Matt from a personal perspective, and that is the concern for genuine long-term holders like myself. I drive past the old Northwich THG offices (I don't live in Northwich by the way) most days on my commute when I'm in the office, I have ex work colleagues who now work for THG and I personally work in a finance orientated part of the WG business, so have a good understanding of why Apollo seen value in WG, and apply that same reasoning with THG, however that reasoning was built up long before Apollo approached THG. What's not to like about championing and backing a local success story, so due diligence was done years ago, insight is gained from ex work colleagues. The business as a listed company is fundamentally undervalued, that I do know, and I'm not happy about that. It's true that I've dipped my toe again today and will continue to do so based on my understanding and analysis of the wider business and markets THG operate in. My partner is a DevOps Functional Architect & ERP specialist, so I know plenty, I'm just unhappy with Matt. If nobody is going to hold Matt accountable for destroying shareholder value whilst being self serving for himself, then I think I'm allowed to have a pop. Based on my investment plan I was intending to hold for another 18 months anyway, and after today I have no reason to change that plan and due to Matts total disregard for ALL shareholders, it will undoubtedly be rewarded one way or another, my average is luckier than most. I'm a simple person, with simple values, but expect improvement in my investments and when they are artificially being played about with, due to either an ego trip or ulterior self-serving motives, that is not morally correct or to be expected from a CEO of a listed company.
#putuporshutupmatt
The phrase “a leopard never changes its spots” springs to mind.
Something will have to give over the course of the next 6 months, either from Matt or externally. I would be very surprised if the sands were not already shifting before today, and now the 65% or 35% percentage will have changed, at best for Matt it's now a 50% split, Matt and Gary Neville deserve each other, great ideas but hypocritical, talk nonsense half the time, believe their own hype, and are poor managers.
I've lost faith, there is only so much you take as a long-term shareholder, the THG story is compelling, it's just Matt cannot pull it off. The last chance saloon has been and gone, and those concentric circles are widening between Matt and EVERYONE!!!!
I've spent the last few days in the City and they are unforgiving when their investments are on line. They are coming for Matt and they will want their pound of flesh, Matt doesn't have much flesh on the bone to lose, so I think they will just take everything, we believed at times there was a coherent plan, now it appears there is none (I thought as much, but wanted to believe), and with that , no defence for Matt, absolutely shocking day, communications unforgivable, disrespect and disregard for ALL shareholders, a plaything for himself, and by default playing with everyone else, but without any recourse whatsoever. Matt you gave it the biggen, but now appear small and very vulnerable, pathetic!
#putuporshutupmatt
A little dig at the Sunday Times also.
#sunsoutgunsoutmatt
GLA
App looks good, reads well, a few features, and not overly complicated, it's exactly what's needed for the commute and review of news at the end of the day.
I'm in London the day of the results, so will be an interesting read and hopefully a impartial narrative presented. But we all hope for a much better set of results, the only concern like others is Beauty, however, I'm optimistic for the future with Beauty, it may be flat this set of results with the other divisions, hopefully, taking the limelight. A £1.2 billion revenue division has "value" whatever way you cut it, literally IMHO.
#happyreading
GLA
FYI: for a bit of balance:
https://www.oilandgasmiddleeast.com/news/adnoc-close-to-awarding-500-million-contract-for-major-carbon-capture-project
GLA
Could be PFC though, I'm happy either way holding both at the moment.
GLA