The dust has settled … personal view18 Jan 2023 08:51
Was personally disappointed over the handling of the £100M EBITA fiasco
no defence of the BoD especially the Chairman, know this will affect market sentiment, it’s a shame because they could have just gone with £80M EBITA in October and advised they were disposing of businesses losing £20M and same time stripping out £100M of costs, the market would have dealt with and moved on.
Took a leaf out of Next CEO playbook
Ingenuity - without going through the numbers in full it’s either 1% of total GMV or 4% of Ingenuity Commerce Revenue line
We need to be savvy on the top line now , strip out £200M Ingenuity and focus on the 2 core businesses which will generate £2B this year at maybe 7% EBITA
Otherwise THG could show £1B extra Rev , £3.2B T/O and flatter the growth
Positive note
Net debt down to £160M - in effect
FCF + £50M , trying to work out how they did that
It looks to me they have slashed Capex budget H2, no other way as our margin for the year was only 4.5% (5.5% H2) plus better stock control
Will there be further capital / cash raised from disposals?
Suggest possibly so, sell the profitable non core and **** down the loss making unsellable bits asap - any capital could go straight against the debt
The 2 core business’s generating pretty much most of the profits grew by 9% in a tough market, they have historically produced 9% margins
at last it looks like THG are focusing on these divisions
Golden Share goes September / full listing looms
It’s not all doom and gloom with THG but the Chairman needs to step up now enough is enough of Moulding’s 20% equity calling the shots - can’t wait to see the back of the GS
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