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Matty Quinn, that’s exactly the problem , THG promote and discounts and a lot of there cost stays the same , Ingenuity gets advantage of the volume leverage , fuller trucks , lower delivery costs , higher overhead recover, so you have a leader driving a volume strategy that does not convert to cash on THG’s bottom line , but who personally benefits as he owns Ingenuity

One of the biggest concerns with the business model , volume and market share not profit is usually you drive volume to get scale and your costs drop disproportionately as you drive more volume and therefore profitability follows , with THG I feel this is all in the favour of Ingenuity, so they make more profit as THG drives volume , so THG discount and promote to drive volume which dilutes their margin and therefore the margins they are getting are so low compared to other companies. Also you can question that they outsource too much with the Ingenuity deal , not just the product deliver to the customer but there whole e-commerce model , therefore this costs them even more margin , this works if you are majority retail business and want to build new direct to consumer business but not when most of your business is already direct to consumer , and without knowing the Ingenuity deal its difficult to value THG and takeovers are unlikely due to the majority shareholders and the Ingenuity long term contract

All agreed by both boards , clearly no confidence by the current board and operational risks are too high , good price if you got in at the lows , sad for long term holders

The down side is about the same looking at the results this week and executional risk going forward , higher costs from Middle East conflict that they may struggle to pass on, lower volumes, think sub £4 is possible, the board are protecting there own jobs , they have ran this company so bad , I sold 2/3 at 560 , will leave the 1/3 to run and may buy back at £4 if it does not go ahead , I think is 50:50 on the down side and upside currently , do £1 to gain and £1 to lose

That’s going to hurt the short positions

I think the shorts will be closing , not much more downside and there are a lot to close so the rise should have a good foundation

Sad to be taken over at just over £3’s , was a great company, lost its way a little

We don’t know how long the contract is or the terms , that’s the issue , it’s likely to be 5-8 years because without it Ingenuity does not function / goes bankrupt

Why do people keep talking about an offer , you can not drive synergies and integrate into your current business from an acquisition perspective when you are locked into a supply contract with ingenuity for years , that’s why no offer will come , and why would MM take it private when he get want he needs today , THG funding ingenuity , THG is a low margin business and is valued as such

I think there are constant sellers managing capital gains at the end of the tax year , everyone is making a loss on this , I think there will be a move back in next week , me included

Main question remains on operating profit , on turnover of 1.7bn they make 8m ? Including profit from disposal, where does the money go ? This is the key issue with THG , their costs are too high and that’s why the valuation v Huel and Applied Nutrition is so different , let’s see if this question is answered in the call

Sorry there are no buts , this dilution is shocking , if this is such a good deal and earnings enhancing and they own the total value chain they should have been able to the fund raising away at 2-2.5p , the market does not believe the story

What a mess , that’s why the selling for the last 2 days , people with inside info as always , selling to buy back at 1p, very sad , why the discount if everything is so positive, should have got this funding away at a far higher price

Very odd moves today , driven down all day then over £1m buying for such a small tightly held stock , is something is happening? Maybe a RSN soon

What most shocking is the previous leadership and many who are still there recommend share buy backs in 2023/24 at >£30 to increase earnings per share rather than reducing debt, the value destruction is mind blowing

It’s been said before , turnover is irrelevant if you can not turn it into cash profit on the bottom line to pay shareholders , that’s the debate with THG , driving volume at no margin only benefits one person and that’s THG’s issue , they need to focus on profitable volume growth only and price accordingly taking into account the costs they pay Ingenuity per delivery , that’s the biggest issue you have the conflict that THG can drive volume at a loss or break even and Ingenuity drive big profits

This is why it rated so highly , strong growth followed by cash delivery , amazing

Applied Nutrition plc has reported a strong first half of FY26, with revenue reaching £74.5 million, a 57% increase from the previous year, and EBITDA exceeding expectations

This has been stated so many times before , until we see profitable growth and increased sales driving increased profit the shares will not move up, it’s easy to drive sales at any cost , profit is critical , that’s the difference between THG and Applied Nutrition

On the BBC , can only be good for SUP, removing illegal vapes from the market , the volume will shift to reputable companies

I don’t see £13 and 6% yield , remember if a company moves to a lower growth model and higher yield they will need to cut internal costs like crazy , capex spend should be reduced to pay for dividends etc , so it’s a balance they need to get right , driving lower growth and driving cash generation for shareholders , they are moving from high growth to a better balance so I’m hoping for this in the low 20’s with a 4% yield