Member Info for danl90

Is booming against the £. Given the strong £ was part of the Q3 sell off we are in a far better position. Boris announcement today will also not help

US and RoW earnings will boom!

This business needs to show a really healthy cash generation period. In my view part of the worry here is the low balance of cash. I know there are facilities but once you’re in them it’s unlikely they would look to do more M&A until they are clearly out

The business (especially beauty) needs to continue to do M&A especially in own brands. So we need to get cash onto the balance sheet to reassure investors

This also highlights that there’s no current plans to take private as if so Blackrock would be over the fence and unable to buy or sell

There’s another one saying THG Ingenuity has “smashed its £10.5 million target”

I screen shot them all so I have them to share

Some good ones re ingenuity too

I found a few others all saying record breaking. The issue is is that the market bakes in a 20-25% record break every year

So 10% up yoy is record breaking but bad if that makes sense

There’s expectation

I think they are waiting to clear the backlog! I think sales have been more than those little boys could do! Ha

Also my gfs 2nd order is delayed as Hermes can’t get a slot so clearly it’s been bonkers

I’m not saying there’s a concern on cash. Just that a lot of people can’t work out net cash

It’s pretty simple to work out

H1 results
“ Strong liquidity with net cash of £384.6m at half-year end (excluding lease liabilities), with liquidity available of more than £1.0bn (including undrawn facilities).”

So c.£550m to £600m of the £1bln is facilities (there’s a bit of rounding)

Then at Q3

“The Group has a very strong liquidity position as it enters its peak trading season, with available cash as at 30 September 2021 of c.£700m including long dated 3-5 year facilities”

So £700m of liquidity less the facilities (Calc’d above) you have the actual cash balance of c.£100m to £150m

Hope that helps!

The cash went on
- stock brought forward for peak
- Cult Beauty

They don’t have £800m of cash in the bank. How many people have got this wrong now

They have £100m - £150m at last trading update

I actually think this is down as SoftBank had a heavy fall today. SoftBank are going to start spending big to buy back their own shares, other investment are having a hard time and their ARM deal is at risk

Maybe the market sees this as more risk that they won’t take the option for ingenuity. I mean realistically they only have £150m or so in this now and their option could buy c.80% of the whole pie! SoftBank bruised investors might be a bit annoyed if they took this option? I know I would be

But the SoftBank ceo did say “they are trying to lay more golden eggs” and they are brave enough to make big contrarian views so it’s not over till it’s over

I just don’t know now if SoftBank will take the option. I mean would you?

I actually think Cult has some really well over Black Friday. It ran, what people on insta was saying a “poor” Black Friday with 25% off site wide

But despite this “poor” offer the issue now seems to be that everything is out of stock! So I think Cult had an amazing Black Friday but perhaps too good that now it risks a poor December and January until it can restock!

The issue for Cult is cult brands don’t have the ability like the big names to pump out volumes. I suspect Cult has experience with this but obvious a Black Friday powered by ingenuity might be a step too far (don’t forget 11,500 ad calendars sold in 2 hours!)

If THG is smart it could offer to help some of the good cult brands by either investing directly in them (this is where I see the real benefit in Cult as a way to see niche brands sooner) or offering them access to THG labs to scale production

But this doesn’t factor dermstore or cult beauty

Or add in Perricone MD (a new own brand)

Either was a massive success or autostore has let us down

Lots of people on instagram stating their order is delayed and my gf placed two orders on black friday (one in the am and one pm). The pm order she was only told it was dispatching today! The first came after a day or so

So as I say either black friday was mega and it's an insane backlog (and the bots are trying their best - 23 hours a day they operate!) or those little bots have had an error

THG needs to show ground with Dotable. At the moment ingenuity is focused on large corporates (which is what ingenuity is meant too) but dotable could be huge. I’m just not sure if it’s being pushed?

It was asked at the ingenuity update and John answer was sort of waffle I think he misheard as he answered about Quality stree

Well me and gf spent near £800 at THG this Black Friday week

Also good was her “stock” up included 3 Christophe Robin products, two grow gorgeous (hair care is in atm it seems) and then the Perricone MD lookfantastic box

I ended getting my mum an espa gift set so loads of the above is own brand items! Obvs my myprotein order falls in this camp too

On the last few orders were actually being told it’s a few days delay so clearly those Autostore bits are busy!

The robots aren’t THG’s tech. That’s Autostore

THG do the bit after the robots

It’s in a bbc article that it’s 22%

Might be worth an email to IR?

Insight from the 1980’s

You can’t truly understand boohoo until you know all about Pennywise

Been keeping an eye out for this so thanks for posting

This just adds more to the point that this can go private. This fund originally invested at Merian and held when it was private. It is also permitted to hold private companies

When I said softbank (7%), Matt (22%), Sofina (9%) and Merian (but they haven’t given an RNS - <5%)

You see so much of the shareholder list covered

Also this fund bought at 596p with SoftBank and Sofina

But btw me and gf have probs spent c.£800 at THG this Black Friday week - it all helps!

While the stock price is low they should be using these attributes to try launching some “own brands” from scratch

Why can’t THG create a Milk?