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A playback of the presentation will be available on THG's investor website at www.thg.com/investor-relations later today.

Well worth studying tonight.

The Market Cap tonight sits at £558 Mill in the fundamentals tab above with £266M cash on the balance sheet and £44M incoming from an agreed sale (£310M).

That leaves an awful lot of company for only £248 Million.

https://cdn.ingenuitylite.com/thg-investors/documents/6322d73ee8b3a8872c42d8bc/interims2022presentationmasterv11409r5.pdf

Does anyone have these to hand please?

Yes I did and thanks for bringing my attention to it.

Will live feed the trades for tomorrow.

Nice one.

Worth watching the closing auction and what pops through on the after market trades.

Did I miss a biggie?

You got the feeling that it wanted to move back up today.

Hopefully that is all the selling completed.

I suspect Sp28 that after todays update there will be a singular bod for either Nutrition or Beauty and it is only going to take such a bid at say 2 to 2.5 revenues, and half what MM and the Board are after to work out how undervalued all the other parts and the whole company is.

My hope today is that one or more of the brokers came out the conference call and did the maths and bought in ahead of publishing a positive broker note at the present sp.

Richmh this has been hit by shorters during the growth and Capex spending phase of the expansion plans for they spend money to rapidly grow. But THG also said this morning that they envisage the Capex spending hasn't got much further to run.

Whey prices working positively to our advantage
Sufficient cash to see through the expansion plans
Significant growth in both Nutrition and Beauty also
Positive cashflow in sight.
Multiple approaches not even communicated to the market.

Read the RNS and add it to the Conference call and you might just be thinking that its at or passed its inflection point.

I think its weathered the storm and all headwinds well and is there ahead of H2. Up to you and others.

You'll be holding or not when the next one drops.

Its a bit hard for any analyst to look at the present share price and market cap and the 4 or 5 x revenue estimates which they are wishing for sales of Nutrition, Beauty etc and not see its significantly undervalued.

As maestro pointed out earlier.

"If nutrition is sold for 4X revenue thats 4x current mkt cap for WHOLE company.

Unbelievable, hold you shares and let them grow".

Easily the best post of the day. Thanks for your efforts Okehurst

Would we agree on below points ?
Have I missed anything ?
Reported wrong numbers to the BB?

Debt / cash

£170M and £44M from freehold sale
Term B loan is covenant light they don’t expect to draw the £500M

Capex

£130M next year, that’s the end of the big spend
Finalising the big distribution centre globally / stocking

Cash flow positive 2024
Capex reducing ( as above )
Margin this year H2 increasing by 200 points

Beauty

20% growth H1

Nutrition

Mid teens growth
Whey price down from €1400 April to €900
Long term it’s €450

Summary

Once they build a distribution centre the next cost is stocking same, they then enjoy the cash as it recycles
This is why the 200 point profit increase is important
Whey prices dropping is key for nutrition
They don’t hedge
Nutrition is valued by the market at just .2 X ( yeah that’s .2 )
4 X to 5X is U.K. valuation elsewhere
Smaller German competitor went for much higher
USA wouid see much higher than x 5
They manufacture for others as well

Beauty is the gem, 20% growth H1
Owning the manufacturing plant in USA
Having the distribution centres over there
USA market now 20% of sales
30% of all sales now outside U.K. and growing as they have global distribution centres

Ingenuity

Looks like they are focusing on ‘ whales ( their speak )
They have 7 out of top 20 brands in sectors
Targeting increasing revenue from these clients adding more of the 13 left of the 20 looks like the plan
Maybe being selective not looking at smaller clients
( that was my take )

No I missed stuff off but that’s the main highlights

Conference call seems to have done the trick and people are now switching on to the massive undervaluation here and likelihood of further bids appearing.

£821k at 70.2p fro Moulding

£1Mill Lord Allen at 86.27p

My typo maestro - 86.27p for the Chairman.

He put £821k of his own money in at just over 70p (and gave them to friends) and the Chairman put £1M in at 76.27p, all in the last few months.

Could easily lift his stake in the blink of an eye to 29.9% if he wished and that would start the tongues wagging.

You / MM made an interesting point earlier regarding vegan protein and it being a growth area Okehurst.

Those who don't eat meat have to supplement their diet with other protein supplements to avoid deficiencies. I have first hand knowledge of this and a family member who supplements a vegan diet with Myprotein products.

Well if the Capex spend cycle is coming to an end, cash is sufficient to see them through to finish the growth cycle and without resort to other means, whey price is visibly and positively dropping, macro picture improving, H2 inbound and a move to profitability is in sight then I think all would agree it looks dirt cheap.

Both Beauty and Nutrition look like they could attract individual bids in their own right.

It feels like a seller still lingering

Maybe offloading to have cash for any equity raise

We sit and wait for the next one.

Now the divisions are split they can come for the individual parts

how