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Number : 6997U
Kelso Group Holdings PLC
30 March 2023
30 March 2023
Kelso Group Holdings Plc ("Kelso" or the "Company")
Recommendations on THG Plc ("THG"), THG Investment Update, Proposed Placing and Board Changes
Kelso, the main market listed investment company, is pleased to announce:
· recommendations following further analysis into THG;
· a net purchase of a beneficial interest in an additional 2.4 million shares in THG, which takes Kelso's total beneficial interest, consisting of ordinary shares and CFDs, in THG to 7.4 million shares;
· a proposed placing at a price of 2.5 pence, a 25% premium to the offer for subscription concluded in January 2023, to raise a maximum of £3.0 million (before expenses) ("Proposed Placing"); and
· the appointment of David Charters as a Non-Executive Director.
Recommendations
Kelso has continued its analysis into THG, including, amongst other actions, a hosted visit to THG's operations in Manchester and Warrington. We believe that 2023 will be a positive year for THG as many of the operational headwinds experienced during 2022 continue to reverse. Whilst we commend THG's board and management's efforts, we believe there are more actions they can take to ensure the share price reflects what we strongly believe to be intrinsic value. Specifically, we would like to see the board deliver on commitments made to investors. We urge the board to implement the following readily achievable measures which we believe will be positive for THG's share price.
1. Kelso considers that the transition of THG from the Standard List to the Premium List of the London Stock Exchange ("LSE") would be significantly accretive to shareholder value. The performance of most active and indexed UK funds is benchmarked to the Premium Index and therefore they can ignore companies listed on the Standard Index. In October 2021, THG announced its intention to apply to move from the Standard List to the Premium List of the LSE by the end of 2022. However, in their Interim Results announced in September 2022, THG indicated that the timing of the move depended on the FCA's review for listing regime reform, anticipated in 2023. Kelso recommends that THG provide the market with a progress update on the transition with a specific timeline. Importantly, we believe this move should be completed as soon as possible, irrespective of the timing of the FCA's review.
2. We urge THG to continue to review strategic options, alongside focussing on cash generation, to ensure underlying value is realised in a practicable timeframe. Initially, for the market to better understand the value potential of THG, it is important that they provide the appropriate detailed segmental analysis, specifically including divisional contribution/pro
https://www.varsity.co.uk/sponsored/myprotein-offers-a-large-selection-of-products-for-its-costumers
The Company announced on 11 January 2023 that following particularly strong trading in Q4 2022, sales for 2022 had exceeded previous expectations. The Company is pleased to report that the strong trading has continued in Q1 2023. Sales in Q1 2023 are expected to be a record first quarter for the Group, with sales to 23 March 2023 already in excess of £16 million (Q1 2022: £13.2 million), with margins continuing to be robust and in line with those achieved in 2022. Accordingly, given this strong start to the year, the outlook for FY 2023 is now expected to be ahead of the board's previous expectations.
https://www.londonstockexchange.com/news-article/W7L/trading-update-and-notice-of-results/15889121
Horizon could be walgreen boots??
The cloud as a platform for modernization
The WBA digital transformation strategy aims to remake all aspects of the business. The first phase, Horizon 1, is well underway and focuses on IT transformation and workplace modernization. During Horizon 2, the company intends to transform its retail operations, and with Horizon 3, WBA plans to implement a new vision for the future of healthcare. Moving IT resources to Azure is an essential part of this strategic plan.
According to Tinto, the
https://www.cleanlink.com/news/article/How-Distributors-Can-Compete-with-Direct-to-Consumer-Sales--29508
For instance:
PepsiCo now sells some snack brand products directly to consumers.
Nike has been slashing retail partners worldwide for the past five years, switching to marketing goods directly to consumers.
Suprise suprise Magento are an adobe co
https://business.adobe.com/uk/customer-success-stories/walgreens-boots-alliance-case-study.html
Have switched over to Thg
https://www.magestore.com/blog/what-is-magento/
https://da.nikotinshop.dk/
Makes sense for age verification
If Thg are a strategic priority!!
Walgreens Boots Alliance intends to use the proceeds primarily for debt paydown and the continued support of the company’s strategic priorities.
https://www.businesswire.com/news/home/20230301006230/en/Walgreens-Boots-Alliance-Sells-15.5-Million-Shares-of-Option-Care-Health