We would love to hear your thoughts about our site and services, please take our survey here.
Apols if already posted.
Kelso Group Holdings PLC Investment in THG Plc Update (5063M)
14/09/2023 4:16pm
UK Regulatory (RNS & others)
Kelso (LSE:KLSO)
Intraday Stock Chart
Thursday 14 September 2023
Click Here for more Kelso Charts.
TIDMKLSO
RNS Number : 5063M
Kelso Group Holdings PLC
14 September 2023
Kelso Group Holdings Plc ("Kelso" or the "Company")
Investment in THG Plc ("THG") Update
Kelso, the main market listed investment company, updates its shareholders on its investment in THG Plc ("THG"). Kelso notes today THG's interim results for the half-year ended 30 June 2023 ("Interim"), which remains Kelso's main investment.
We are generally pleased with the operational and financial performance of THG, however, the lack of strategic update is disappointing. There is no mention of plans for the medium-term structure of the business or regarding the move to the Premium Segment of the London Stock Exchange. These matters are important to shareholders; we think that today's material share price fall is due to the lack of clarity on these plans. Several comments were made in the Q&A meeting this morning around the potential future structure of the business which we believe would have been beneficial to be included in the Interim results.
It was pleasing to see full year expectations reiterated at c. GBP120m. For the period, EBITDA was slightly above market expectations at GBP50.1m, driven by a strong performance in THG Nutrition of c.GBP47m, an increase of 72% year on year. In our view, THG Nutrition will continue to perform strongly in H2 and whilst performance in THG Beauty declined year on year, it is encouraging to note that it has returned to growth at the start of the second half.
Kelso believes the true value of the group will only be realised when THG Nutrition is divested, albeit supported by Ingenuity, whether majority owned by THG or not. We have said before that we believe THG Nutrition has a value significantly more than the current market capitalisation, and plays strongly into the global trend for large snack companies to diversify into healthier products. Given the significant recovery in THG Nutrition this year, we believe that now is the time to be exploring the strategic options around this business.
Shareholders would appreciate an update regarding the potential move to the Premium Segment. Most UK active fund managers and index funds are benchmarked or indexed against the Premium Segment and so do not consider shares listed on the Standard List, as THG currently is. Moving to the Premium Segment would force these funds to consider THG. As a result, we believe that THG should embrace the UK stock market and move as quickly as possible to the Premium Segment, regardless of future potential changes that may be brought by the UK Listing Authority.
Could be 100 soon. They will literally be throwing off cash. The market cannot ignore this for much longer.
Mkt cap is simply ridiculous. They will be over 5,000 boepd before we all know it and with no debt they should be firmly looking at around 100m mkt cap. Reserves increases could land any time and 21 wells planned for CN. That’s going to be a huge field.
Just buy. I’ve settled now with my 300k. Steady buying and this will move at a pace soon as the loose stock evaporates.
When it’s 40p people will be wondering what all the fuss about the warrants was about. The valuation will sort itself out very soon. I don’t see how this trades lower now. Especially as it looks like cn3 hit 100ft of pay based on the hints in the last rns around the consistent reservoir size.
Https://twitter.com/gregpeck_07/status/1696577900126892527?s=46&t=i2yuLTwk3Z4JP-weMNoS5g
I’ll get the herd here.
https://twitter.com/gregpeck_07/status/1696442917567553968?s=46&t=i2yuLTwk3Z4JP-weMNoS5g
Hence the comments. They are building a much improved model of that field. How many wells can they put down on CN - going to be over 20 by the look of it. That’s one hell of an asset and my read is that it’s not in the price.
Been watching this long enough. The pecker is loading now. Ridiculously cheap now.
Watching this one. Stinking results. Another hit with the drill but. Why’s it down?!
Agree, but will they be fining themselves, when that are inevitably targeted? I personally think the whole setup around this is poor. But based on the data breach, Northern Ireland police service should be in the brace position.
Huge fine LOLS...
If thats the case then the Northern Ireland police service will be bankrupt soon ....
ICO needs to be careful.. I would suggest it wont be long till they are a victim of a cyber attack - will they fine themselves?
Fining companies for cyber attacks is going to look very very stupid
Its like getting fined for being burgled.
This is a huge company with a dispute on some software licenses in one small area. How many large companies have some form of dispute at any one time. I would suggest most. Worst case scenario the license ran out in March. Ie a few months ago and they need to formally renew it . Clearly 2 sides to a story but how this is ‘big’ news. It’s desperate nonsense tbh.
Nice - buying is pretty relentless now. I still think this is heading to around 30p in short order. The reaction to results simply didnt justify that fall and if anything the company is in a stronger position, plus forward looking statements encouraging and one more disposal coming.