Member Info for Hosai

It is interesting Okehurst, considering I believe THG has made a trading loss basically every year, they can bring forward all those losses indefinitely until they are all (hopefully) used up against trading profits.
Seems worth noting in the sense that EBITDA can be looked down upon as a measure but with THGs large tax loss that EBITDA can more easily become profit after tax/net income for a number of years once hopefully profitable.

Don't think companies can buy an company just for the tax losses. Obviously it's quite complex, think you'd have to buy the whole company to get the tax losses?
But even then think they are quite strict at not letting companies do this to avoid tax - "in short, such losses can only be set against gains on assets that are used for the continuing business of the company that joins a group. As such they continue to place limits on the tax benefits that a group can obtain from purchasing another company or group that has accrued capital losses."

https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg47400

This is some of the "about" section for the chief investment officer Jamie brook of Kelso:

"I began my career in 1993 at Deloitte, originally in audit where I qualified as an ACA and then subsequently in consulting, then moved into private equity, firstly at 3i plc’s London team where I invested in leveraged buy-outs, and then at Quester, one of the largest UK technology venture capital investors at the time, investing before, during and after the late 1990s internet boom.

In 2007, I moved into public equities with the leading small-cap Volantis team at Gartmore, which was purchased by Henderson, before our team move to Lombard Odier in 2017. My role applies my hands-on private company experience to quoted companies, both in terms of the private equity style due diligence and active engagement post-investment, including taking board positions.

I have extensive experience of being an active investor, typically making investments into quoted companies then helping their boards to make a strategic change to unlock or realise shareholder value."

https://www.linkedin.com/in/jamie-brooke-a71109/?originalSubdomain=uk

Presumably putting a premium on those individuals making up Kelso and their future investments? Quite a strong premium though their THG shares much be worth around £3 million currently, market cap just under £12 million is arguably like buying THG shares today for 230/240p.
Although if this group were that respected to have that kind of premium you'd think their backing of THG would have boosted THG sp more.

The profile title was - Lord Lucan Allen
So Good You don’t even know I’m there

About - "Im a seasoned professional executive and the current chair of THG PLC. This is my dream job as I haven’t had to do anything and I’m netting 400k a year to say nout. Lovely jubbly, easyyy money."

Lord Lucan Allen commented on a post • 9m9m
Go ahead Neville. We are a charity after all. Have some shares too. It’s all free if your mouldy loyalist like me.

Lord Lucan Allen commented on a post • 1h1h
Some food there. Why don’t we give a load away for free. We are a charity after all. Free studio for matts mates. Free shares for matts mates. Anything else we can give let’s do it.

Lord Lucan Allen commented on a post • 2h2h
2025 great. That’s the date for my first board meeting. I’m bringing the Jammy dodgers.

Someones created a parody account and is commenting on THG posts lol -

https://www.linkedin.com/in/lord-lucan-allen-b105b1265/

It does seem quite one sided when you think about it in terms of ingenuity cost versus the ingenuity customer cost.
THG having to invest another £80-100 million on top of all their previous ingenuity investment, and then keep paying that 80-100 per year as maintenance? Meanwhile the customer avoid all that upfront cost and then pays what appears to be a tiny margin to THG for handling so much for them.
This is why I can't help but believe there is something more to it, the management are too smart to pursue something that looked that difficult to get a good return from. There's also got to be a reason WPP are investing heavily in "everymile" and the CEO even said its “not dissimilar to what THG does."

I suppose they can't envisage it being split currently.

Okehurst we do have access to £640 million cash (£680m after property sale). Debt not maturing until Dec 2026.
We could afford the SaaS capex, maybe it wouldn't feel like a great investment currently but market could have turned to a bull market in 6 months and online revenues/ebitda may have started to be valued on higher multiples.

As Okehurst has said. If we can deliver the £1 billion GMV market should value us a little more like Ocado. Ocado currently has weaker financials than THG and a much longer wait to be cash flow positive but have a £5.83 billion Mc versus THG £760 million so the market clearly likes GMV.

Says here Noblet was the 6th biggest dealmaker of 2021:

"Jeffries & Company’s Philip Noblet ranked sixth for his work on nine deals worth £16.25bn including IQ Student Accommodation’s acquisition of Gcp Student Living and Boohoo’s acquisition of Burton."

https://www.cityam.com/exclusive-new-data-reveals-the-top-10-dealmakers-of-2021/

Cantona do you think there could be anything to Damien Sanders "working with" Philip Noblet who is head of UK investment for Jefferies? Or am I just clutching at straws?

With Moulding getting £20 million rent a year since IPO he must have received £50 million odd rent by now since IPO. Maybe he could fund some of the SaaS capex? The share price rise can pay him back.

Can it really not have worked to the extent that they now are seeking something with a 1% margin versus 60% before? It seems hard to believe.

Okehurst remember when RBC wrote this a year ago -

"We project that Ingenuity Commerce could increase tenfold to £0.5bn of revenue in five years, with at an EBITDA margin of around 60%, drives our discounted cashflow valuation for the segment of £4.4bn. Yet the market is attributing no value at all."

Obviously the revenue doesn't look likely, but it's strange that there seems to be such a disparity of percentages people believe/believed on what the potential EBITDA is.

https://www.sharecast.com/news/broker-recommendations/rbc-capital-ups-rating-on-thg-to-outperform--9088704.html

"Matt Moulding has single handily destroyed the shareholder value in THG whilst making himself and his mates very rich!"

He hasn't done it "while making himself rich" he's made a massive paper loss in the last year.

I liked his reply here to a somewhat negative comment:

Brian White - "Very impressive and congratulations on this high profile appointment . A role that is set at a very challenging time for the business and its perception in the city . Every success - it will take all time skills to navigate the waters in this one !"

"Many thanks Brian and I’m more than up for it as it’s an outstanding business with outstanding people. Keep in touch and appreciate the advice and comments. Best Damian"

"https://www.linkedin.com/feed/update/urn:li:ugcPost:7024365999374127106/?commentUrn=urn%3Ali%3Acomment%3A%28ugcPost%3A7024365999374127106%2C7025380665252536320%29&dashCommentUrn=urn%3Ali%3Afsd_comment%3A%287025380665252536320%2Curn%3Ali%3AugcPost%3A7024365999374127106%29

Surely at some point Matt M will want his own shares to rise? We are all talking like we are hoping for him to go so the share price rises, no-one will benefit from a share price rise more than him.
For the record I agree with others that he's a great entrepreneur and should be proud however in terms of CEO people like their CEOs to be boring and reliable (especially in the UK).

As far as I can see Sanders only role is THG now? So potentially interesting him "working with" a senior deal-maker?

I forgot to say, this is an article about the Phil guy who used to work for HSBC and they describe him as "HSBC’s most senior British dealmaker"

https://www.ft.com/content/83b09484-a541-11e8-8ecf-a7ae1beff35b