£43 Million for Coggles20 Jul 2024 23:26
"£43m for Coggles, can’t be bad for a loss making co."
Yes indeed Jockbob you hit the nail on the head with that comment. Eventually the market will get it.
Coggles was actually picked up out of admin by THG for a song so that's £43 Million more than anyone thought it was worth and for a business which barely broke even last year. That's good numbers.
In fact there is a lot in the Frasers / Sports Direct, THG deal that should be adding value to the share price rather than taking away. So £43M more for starters that will figure into the next results and onto the balance sheet.
"Retail giant Frasers Group hailed its new third party partnership with Manchester-based online retailer THG as a major growth opportunity as it released its annual results to the stock market this morning.
Michael Murray, chief executive of Frasers Group, described the year as “a break-out year for building Frasers’ future growth.”
“As well as delivering a strong trading performance, particularly from Sports Direct, we made significant progress with our Elevation Strategy. We expanded our retail ecosystem, establishing valuable partnerships with new brands. Our brand relationships have never been stronger, giving us invaluable support as we continue the international expansion of our business. We invested in group-wide operational efficiencies in warehouse automation and digital infrastructure, which we expect to yield a tangible impact as early as FY25. And we generated new growth opportunities with the rollout of Frasers Plus, including recently signing our first third party partner in THG.”
In June THG sold its luxury division, including the retail brand Coggles to Frasers for £43m and continue to provide ecommerce and fulfilment services through its Ingenuity platform.
A wider deal for Ingenuity to service Frasers in Australia, and sell MyProtein products in Sports Direct stores “further broadens the Myprotein brand appeal, bringing the rapidly growing Hyrox community to both Myprotein and Sports Direct alike” the company said.
Also thrown into the deal is an agreement for Frasers credit and loyalty platform, Frasers Plus, to be integrated into Ingenuity’s checkout and be available to both THG’s Beauty and Nutrition customers, as well as to Ingenuity clients.
The figures today also revealed that margins were hit by surplus inventory from businesses acquired from JD Sports and the impact of continuing closures of legacy House of Fraser stores leading to a reduction in gross margin to 35.8%. This was offset by overheads savings arising from the closure of House of Fraser stores and acquired businesses being integrated into the Group."
https://www.thebusinessdesk.com/northwest/news/2136716-city-round-up-aj-bell-franchise-brands-frasers-and-thg
Sign In
Follow the stocks
