Member Info for RN1MLT

If anyone thinks that the likes of Sofina and QIA will let their interstements affected by a small fish like MA, no chance. 

Zoom out and you will see that the float price was way too hyped because of the pandemic and predicted future trajectory of retail business. Ingenuity being a success was written off by 2023 and plans to separate it out wear in motion in 2024. Spotify made the same mistake but rectified quickly by coming out of distribution and managed to control costs and improved FCF.

Now we have 2 profitable businesses, the market will value it correctly hence why we have someone like MA building a stake, just a value play. Why are other IIs not building then? I think THG has a bad reputation and other IIs may not be as shrewd as MA to see past this. Remember MA got the same treatment from the city many years back!

Also, I can't see MM staying as CEO until the next AGM, he will move on, I believe all this has been planned already.

Follow the money I would say... LOAM buying heavy tells me there will be some event soon, also other things to do with IP group as well... this is done on purpose to pull the price so that they can sell this business at say £1, and we will not complain

I don't understand the negative slant. Yes, the growth of revenue is reversed due to re-branding (We will see in future if this was the right move at a right time), but now it is starting to recover, Q3-24, £134.5 to Q4-24, £145.2. I will wait to see if this trend continues and myprotein starts to grow the revenue and more importantly the earnings.

Why can't it be as simple as they held stock before under 3%, have participated in the recent placement, now have over 3% and have to report it?

Has anyone got an email from IG yet? I am contacting them for 2 days and getting no where,I am starting to think they are making it difficult for us to choose.

I am with IG as well, still waiting to hear from them. I had written to them last week, yet to get the reply..

This morning from IPO:

"IP Group plc (LSE: IPO) ("IP Group" or "the Group"), which invests in breakthrough science and innovation companies with the potential to create a better future for all, is pleased to announce that it has agreed the sale of minority holdings in nine portfolio companies across its balance sheet and managed funds to a new fund managed by Lexham Partners."

I was worried at first seeing IP group selling 2.9 percent worth shares, but having done some research, found out that they have sold a part of their portfolio holdings, to a new fund, my assumption is that they have picked up these new shares.

Yes, I expect to see a new holdings RNS soon from that fund.

I am certain in my mind that MA is getting 10% of Ingunity shares and more, he has limited interest in THG. There are so many synergies for Frasers and Ingunity now and this only increases with the future direction of travel. Sofina, Frasers, MM will be the big three in Ingunity.

Well spotted CheshireLad - Quality research with insightful analysis, what a wonder this AI thing is!!

Effectively yes, for all the money put in by THG to raise Ingunity, it is valued at £0. If we believe in Ingunity and Matt to deliver it, we can opt for shares in Ingunity, and we are guaranteed allotment to the same proportion to our current holdings. If we do, we will have same exposure to all three divisions as before but now Ingunity will be privately held, long term play, while the rest will be migrated up to FTSE 250 index allowing them to progress with out having to support Ingunity anymore.

Smythsmoneybox, hope you recover well and stronger.

Come Jan6th, 200mil shares will be removed from the THG, thereby removing the effect of dulition we had due to the rasie. If you do nothing and just sit tight, by JAN 6th, you will have the same amount of shares you currently have but the company will only have 1.3 bil shares instead of 1.5 bil, making your 200k shares 13.4% more valubale. The hope is that with Ingenuity taken off the books of THG (remainCo), THG will be profitable and SP will recover over the next year with the inclusion in FTSE250 by March25.

Just a thought.. Last time I was in a share which got taken out, the company did a cheap placing to 'give away' shares to IIs. The logic there was, big IIs cannot average down by buying in the open market without increasing the price, the company facilitated this and also knocked down the price only to then sell the company at a 100% premium.

We know QIA got cheap shares at 39p, their average is expected to be 170p now (wonder what will be Sofina's now, can anyone help?), so did Sofina and others get the same deal now so that they are now able to agree to a sale price? 

If not, the reason for this drop is hard to explain!! Data tells us the value is there in this company and it's not this low.

I agree, it was never promised by early November. I guess they released the infromation when they did so that they can get the placing done, so that the next stages of the demerger can be actioned. I understand there will be a debt component to this deal for IG, 75Mil debt + 75 mil cash, which needs to be finalised with the new deals with THG.

I think my hunch could be right at this rate... We are also seeing more buying in the last 3 days..

It allows us PIs ample amount of time to digest and come to an informed (FWIW) decision over the weekend while the market is closed. This should remove any emotions from our decision and we can make the call next week on what to do with the THG shares we hold, just a thought!

Agreed YesIMB, I did consider that scenario as well, hence my mention in the last message on how the contracts will be framed between these two entities will help me, and I guess the wider market, decide on the true intentions of this exercise. 

THG will also have the option to use a third party service for fulfilment, if this third party is more expensive than existing ingenuity, then I see that as a good indicator for the success of ingenuity. But if it is the other way round, then it should have marginal disruption to the THG operations. I know any of these scenarios will be very painful, but I don't have an option but to be patient and tactical and not be emotional at this stage.

The worst case for ingenuity in my books will be that it will stop dreaming to be this world beating service and just do its initial intended job of being an efficient fulfillment service arm of THG. THG will buy ingenuity back for a fraction or at no cost.

I am 60 % down, if I take Ingenuity shares and it goes bust, I will lose only 14% of investment. I am taking this risk at a very low valuation, so that compensates it It's not like they are valuing Ingenuity at 1B now, it's only 100mil, 2 years later, they want to raise more funds, it should be valued way more than this unless they totally fail in the execution, I will take my chances now.

You should understand what is going on at Boohoo and who all are involved, specially Ian Mcdonald, then you might get the clue for why they haven't supported THG at this stage.. bigger battle to fight with MA, you will need all the money you have to move swiftly when needed..

Irrespective of this speculation, my investment has been based on the fundamental value of this business, strong revenues in these difficult times.. yes may not be worth 5.4B valuation but still more than 2.5B at the least...The direction of travel is welcomed, but still need clarity of the type of contracts THG will have with Ingenuity going forward, once that is clear, then this will re-rate.

My conclusion (feeling) is that someone who had the knowledge of this started buying so the board were forced to release it.. we should see more RNSs today with more IIs declaring.. during this period its 1% threshold not 3% to declare, so if someone was buying big, they will be forced to declare..

I am in this stock from 2020 when there was a reset of ownership, it was publicly discussed by some IIs then that this investment will not mature until at least 2025 and that they will take stock of this investment around 2025, so expected in that sense. We PIs have been agitating for a long time that this share is not moving up and getting its fair value, now the IIs are saying it. As they have more shares and clout, they can do something like this...