Member Info for Okehurst1

I agree on the Tech side, nothing unique and other bigger players have the same however for THG this is about scale / entry to market in its specific markets

THG in both Beauty / Nutrition is number 1 globally for
e-commerce distribution, it owns the manufacturing plant based in the USA that produces many of its wholly owned products for Beauty and is the worlds biggest purchaser of Whey and it generates £2B a year plus of revenue across both divisions

Ingenuity is valued at £zero by the market so not even worth debating

IF .. the BoD deliver what was promised in April

Removal of Golden Share /Premium Listing, index funds then have to buy

Something specific with Beauty Division, ideally spin off, look at ELF valued at $2B and it’s a fraction of the size of THG Beauty

Clarity on Capex / Opex for Ingenuity, how are they going to fund? This has had to be where the big £££ investment is being spent

They cut out throwing ££ into the line of ‘ exceptional’s ‘
It’s a cost of doing business, we can’t measure the return on capital employed

None of the above is asking too much, it’s what was promised via RNS’s and standard reporting that is expected from a publicly quoted Company

Blinky, agree.

It’s a Red Line for investors, he either gives it up or he runs it down and he attracts a Bid that the majority shareholders accept, he needs to deliver what was promised, hence the share price is a win win at these levels

Big day Thursday

Re ‘value trap for years ‘

Matt holding onto the Golden Share protects his position, we have 52 weeks and it naturally expires, if he doesn’t honour what has been promised then the share price will be lower and that makes an external Bid more likely

It’s in Matts interest to see the share price rise, premium listing will help

Monty

It makes no odds who owns the property from an operational point of view, there will be legally binding leases that THG and whoever owns the Sheds have to uphold ,if investors want to buy real estate there are plenty of REIT’s out there to get a coupon, last thing we want is THG capital tied up in property

The Hotel/ Health club should be sold as a going concerns, they have no benefit other than pay rent - to whoever owns the lease

The market wants Matt to give up his Golden Share,he said he would via a Premium listing back in April, let’s see if he can honour what was announced, suggest this is the most important point outside the trading numbers.

Sp,
Think that’s a fair assessment

The group 75% of shareholders are only asking the 25% shareholders to be transparent

Ste, am with you.

The Chairman can’t be happy with his investment, he must see the potential to punt £1M of his own cash

Ditto the large II holders who are well under water

Moulding must be getting pressure all round.

That Golden share doesn’t last for ever, he needs to step up on these results / presentation / transparency

If they are just plodding on say that and the market will react as it will to the numbers, if it’s seek premium listing / something with Beauty ,then deliver that with a timeline to boot

When you look ELF Beauty’s balance sheet - put aside it only does $400M Rev plus a year, not even 30% of THG’s Beauty revenue .Nutrition and Ingenuity all bunce

It’s net balance sheet is diddly squat to it $2B m/cap

ELF can do deals at $2B

No idea what goes through Matt Moulding’s thought process
It doesn’t make sense to me who wins with a £650M m/cap ?

They can’t do deals / raise capital of note
We have no transparency and the clock is ticking down with his golden share

Either he pulls the trigger and releases share holders value or someone else will in 52 weeks time and then he has a real battle on his hands

So spin off beauty as intimated back in April , we could see
£2 alongside premium listing

Ingenuity / Nutrition for free on top , either together or separate

I have no idea why the BoD wouldn’t go down this route?

They then justify refusing the ( non ) £1.70 non bid

Burn the shorts

Water torture :-) feels that way at times

For us little PI’s it seems so easy to present this business in a logical manner

Free cash produced from each division, how much margin they pay / give away to ingenuity, how much ££ is Ingenuity requiring ? We have to assume the group cash burn is from this division ?

Put aside the the exceptional costs, which are no longer exceptional as they become a cost of doing business

If the THG report could report with transparency and the market deals with that information good or bad , ditto IF they say they will seek a premier listing / do something with Beauty then do it … or don’t say it

It’s not difficult

Worth re posting - to add to what 1pencil quoted

Below was just 26 weeks ( ish ) premium segment and doing something with Beauty ?

No idea why they would say all this then renege, doesn’t help anyone involved

‘During the year we also announced a number of strategic options for 2022 and beyond, including our plans to step up to the Premium segment of the London Stock Exchange's Main Market and separate THG Beauty by way of a listing or strategic partnership. I will work closely with Charles and the Board to continually review these strategic options and we look forward to updating you on progress during 2022 as our plans take shape’

Ha! Your right 1pencil

£650M for the lot !

The need to do what they said they would so just 6 months ago - that’s not asking a lot

With no golden share the market can value Beauty, it currently has no idea valuing the whole group at £750M
We will have transparency - should have - on the £numbers and measure ROC

Ditto binning the health club - Hotels, pointless within THG

Not apples with pears but Melrose doing same

Why say it back in April then reverse, it’s poor communication if they don’t follow through

Fully agree … add them to the list

It’s surely not hard for the BoD can see all this ?
And ditto the II’s ?

Good they de merge Beauty?
As intimated back in April - below
Ditto main listing ?

Makes sense when the value of smaller standalone beauty Co’s are trading at higher multiples, ie ELF etc

De merge Beauty
Seek full listing for above / rump left behind ?

Market would definitely love that

If that’s it … ‘ we are trading through …’. Which it may well be

The II’s won’t be impressed, there has to have been pressure on the BoD to improve their communication to shareholders

To say below and then not deal with is not helpful

Personally I am confidant they pull a rabbit out the hat on Thursday, we are due some good news

‘During the year we also announced a number of strategic options for 2022 and beyond, including our plans to step up to the Premium segment of the London Stock Exchange's Main Market and separate THG Beauty by way of a listing or strategic partnership. I will work closely with Charles and the Board to continually review these strategic options and we look forward to updating you on progress during 2022 as our plans take shape’

Will they announce the ‘ split ‘ or partnership ?
Ditto main listing ?

A/Steel,
Agree with your comments.

Don’t think the wider market has picked up what the £150B stimulus does to the feel good factor in the U.K. when the energy bills don’t go up in October, coupled with the negative effect on inflation - how it’s been structured
It’s a bigger stimulus than Covid !

We will still see interest rates go up but last weeks ‘ print ‘ will stop us seeing that 18% inflation figure

Soon find out in a few days time on how trading is going, I am feeling positive