From advfn17 Nov 2021 18:47
Investment bank Numis reports itself to watchdog after retracting memo about THG 'irregularities' Numis has apologised and reported itself to the Financial Conduct Authority after suggesting that there were "irregularities in accounting" at THG, which it helped to float last year, Sky News learns. Numis, the London-listed investment bank, has been plunged into turmoil after retracting allegations about "irregularities in accounting" at the online beauty and nutrition retailer THG - a company it helped to float on the London Stock Exchange just over a year ago. Sky News has learnt that Numis has reported itself to the City regulator after an employee circulated a bearish note to institutional clients last week accusing THG of "a lack of clarity" and casting doubt on the value of Ingenuity, one of the company's three main divisions. City sources who have seen the memo said it recommended that hundreds of clients reduce their holdings in THG and suggested that its shares were worth 21% less than they were trading at at the time of the note - despite Numis's own research analyst suggesting that there was significant upside potential for the stock. Matthew Moulding THG GROUP The Hut Group PIC: THG Image: THG is led by Matthew Moulding Pic: THG The original private note from Numis was circulated on 11 November. Within 24 hours, a follow-up was sent out alluding to "misrepresentations of some of the commentary made by the team" in relation to companies including, but not restricted to, THG. The amended version removed the reference to "irregularities in accounting" - for which people close to both companies say there is no evidence - and modified its suggestion relating to the potential trajectory of THG shares. On 15 November, a further note was sent to Numis clients apologising for "some inaccuracies, which we attempted to clarify in a revised email to this same distribution group on 12 November at 12.37pm".
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