Member Info for Okehurst1

Ashley will be looking at the numbers and comparing the

6.5% THG margin to APN’s 29%

If we wonder why APN’s market cap is £277M to THG £377M

it’s the low margin that stands out as a big factor.

Why is THG 23% lower margin ? That’s a big difference

Well MM as CEO of THG takes 20% of THG revenue and gives it to Ingenuity where he owns 50%, he’s taking all the bunce here .

Come on Mike make your move before MM converts CLN, if we can see the above we know you can and for sure the II’s can you may just get this over the line, your equity is dead money in THG once he converts

Highlights

H1 FY25 revenue of £47.6 million, comfortably ahead of guidance provided at the time of IPO of £46.0 million, providing a strong underpin for the full year guidance of £100 million

Adjusted EBITDA of £13.8m resulted in an adjusted EBITDA margin of c.29%, which was in line with market expectations. H1 FY24 EBITDA margin was higher than usual primarily as a result of the operational leverage caused by the brought forward orders

Strong free cash flow conversion (after tax) of 64.5% was ahead of market expectations, resulting in free cash flow generation of £8.9m and net cash at period end of £10.9 million

So MA/MM are basically in an undisclosed concert party ?

Put aside that’s illegal but who cares

They get to 60% then buy out the balance because MA thinks MM is a genius retailer and needs him to sell protein powder and make up

MM has 50% of ingenuity and nicks the £340M from THG

MA has 10% of same but is happy with what he gets off MM even though he has 30% of THG

They will be working out together next ,snow boarding in France and doing boys trips to Dubia

Prox

Can’t see these 2 ego’s being in this together

No way would MA continue to let MM walk off with £340M a year

It’s why THG can’t make a decent profit on £1.7B MM takes it for himself

MA ain’t pumping ££ into THG shares for MM to nick £340M a year

Put aside the price of Whey/ ¥ , that’s pure MM playbook , look over there don’t look at the £3.4B am having out of this one over the next 10 years

MA is no mug, if we can see it he can see it

The Fox is well inside the hen house

Come on Mike we are counting on you ,take MM and GLA down

Morning OSG/ OhhAhh

Thanks for the responses, v helpful for many of us on this BB

Let’s hope MA is planning a major event

Genuine questions

Has anyone seen full terms?

Would MM be able to convert if there was a Bid ?

Few thoughts

Suggest next internal driven event is do the BoD use the FCF to pay back MM his £60M ?

Or

Pay a dividend/ share back ?

From the Companies point of view repaying MM Debt is the right thing to do, not pay out a dividend, same with a share buyback, would the Company be able to buy 180M shares at 32p? MM would be suited by a buyback, it’s win win for him

It’s important because MM doesn’t get control without this conversion, this was the Poison Pill to Ashley

However Ashley has kept buying which suggests he must have a plan.

THG Market cap = how much MM as THG CEO takes from THG to pay to Ingenuity where he is also the CEO

£Mcap just made it

M/cap £380M vs £380M MM takes from THG to ingenuity

Remarkable

Our best bet is Ashley keeps loading, he may well be playing with the stock to tease out sellers but he will want more.

Here we are today with a £m/cap approaching the same value as the annual £££ MM takes out of THG to pay into his 50% privately owned business

That’s got to be a first

Put aside the £22M THG pays to rent space

Suggest the difference here is MM is nicking £340M a year

Ashley will be all over that contract

£3.4B over 10 years

Proper money even for big Mike

Ashley only need 50.1% to take out MM

If he went to 20% to 30% ,if he could get there, reckon he could get the support to oust MM/GLA

Then a DOGE style review of the £340M a year MM pays his 50% controlled Ingenuity, that’s the big one.

Boo vs Ashley defence document lists something 35 deals that Ashley has done, all similar tactics to current with THG,his MO is not passive investments

Does he nibble away to get to 20% of THG and how long will that take him and at what price? Guess he has to raise his buy price to squeeze out sellers if he wants volume ?

He has to move whilst MM is exposed, it’s a very small window as MM had arguably put him into check mate barring a technicality of the timing of the CN converting

Time is not Ashley’s side if he wants to control the BoD of THG

Dermstore & Skinstore

Both THG USA based/ owned assets, comes in handy

Guess it’s down to how much is Ashley willing to pay to get to 20% and above ?

It’s a big if but if he got to 20% can he muster 30.1% of support to vote MM off the BoD ? That’s all he needs

Now is the time for Ashley to accumulate, which he is doing.

Kick out MM /the useless GLA then unravel the 20% of sales that Moulding top slices out of THG

MM leaves THG and shares potentially rerate and II’s may reconsider but he can’t afford to walk away and someone looks at the 20% contract he have himself

Until then this is all about MA picking up any free float

Our best bet is somehow Ashley get to 20% plus and calls an EGM to remove MM and the Chairman.

He could call it today with his 10% but with a bigger stake he carries more weight

He has to kick out MM before he can convert to his 180M Shares or before MM makes his move to take private

Ashley is our best bet

Pearl, for THG the Company it was the right thing to except an interest free loan off MM which facilitated a better outcome of the debt reduction, no one can argue on that point

However, this is also a poison pill to counter Ashley and there will be a day of reckoning by the BoD, do they repay this debt to MM to avoid him converting and/ or fund a share buyback which taken together will make MM’s control complete ?

I would argue from the Company point of view it should convert MM’s debt, that should be priority, however we have a strange situation where the Company will hand over £3.4B to MM over the next 10 years and on that point it’s not in the Companies interest to convert as it needs an independent CEO away from Ingenuity

Regarding the Chairman could he personally face legal action down the road ? Who knows but he is walking on thin ice, he’s a total disgrace to the City of London

Think we would all take MA at the Wheel over MM

It’s why no II’s buying in