Member Info for sj74

With a FCF of £50 million I get a PE ratio right now of 12.5..

Probably needs to be nearer around 20 to compare with peers so I'm reckoning around 55p would be fair..

FCF could be alot more or alot less... Attainable target to aim for though this year you'd think.

Nope, this is what was said..

The Group had cash and available facilities of £457.7m at the period end, and expects to refinance its existing debt facilities, largely maturing in December 2026, within the next 12 months.

They did mention in the HY results in September that a restructuring was to occur within 12 months..

So FCF for 2024 of nutrition and beauty is £44 million.. perhaps similar for 2025.. looking at warpaint and a few others they chuck out around 50% to 'owners of the company'.. similar for THG over the year would be c£20 million at 1.3 billion shares in issue is a 1.5% yield..

Just a very basic look.. could be alot more free cashflow or less.. but THG has to start somewhere and not beyond the realms of possibility, would certainly start to give it more credibility.

Could be way out here of course.. soon see in April.

It might go up by that but I think it was mere ramping from the super ramping in and outers. It is good though, company tackles the debt.. now a profitable company for the first time lol

Maybe not that soon 😅🤣. I reckon at least a couple trading updates, let's see the numbers coming through from remainco.

Wouldn't discount it though it would be making a statement and another way of enticing investors starting off small.

Well put, it certainly opens up the gates of paying dividends alot sooner than previously thought.

Yeah at first glance it sounds bad, but on reflection theya re wiping out a large chunk of debt with at the closing price and no huge dilutionary affect. You can argue the SP is heavily down anyway and probably because of this which has been underway for a few weeks now.. however I'm not sure you can argue it's bad news... Got a bit of a ring to when Matt and QIA took all those shares off the market a few years back in the 30s that put a bottom in and strongly rosé from.

There is that.. I don't see PIs getting a look in on this.. only £31.2 million to be raised through shares issued. Frasers will want a piece of that and Matt as much as he can and whichever other iis. Hopefully will put a bottom in..

I read that in the RNS regarding the closing price.. but I also read about at the discretion of the company and Barclays or was that relating to something else??

Of it's just that at the closing price then I think we may have a decent rise tomorrow..

It's good news.. not much dilution but at what subscription price.. find out in the morning lol

It is confidence.. will be more than he has invested into THG since IPO all in one go.. hopefully the subscription price is very similar to where we are now..

Really hard to call this tbh in the short term.. I can see a drop tomorrow but can equally see a big rise due to quite a large amount of debt being wiped 🤔😂

I mean it is alot of debt wiped out with the majority coming from Matt putting his money where his mouth is... Sticky hands too.. not really that bad news to me..

OSG, agreed I think Matt's pulled a relatively shrewd move.. will have to see how the markets react though.

Not sure if that interest rate is right with Matt saying this:-

Given THG Ingenuity is no longer part of THG, we’re planning a new £550m set of facilities, reflecting THG no longer funding Ingenuity’s capex investments.

“Achieving a similar interest rate as the pre-Covid ‘free money era’ isn’t quite as simple.

“However, the feedback from debt markets has been that this should be achieved if THG raises £60m of equity.

Seems decent enough to me on paper.. has anyone worked out how much net debt remains? Looking out, this is good for remainco which not a great lot of dilution Vs benefits gained imo. Market may be a little turbulent mind..

In parts the RNS mentions placing price being the closing price of today then other parts mentions it at the discretion of Barclays and the company?

Plenty in the free float.. just watch him do it..

😂🤣😂 genius

HL do not lend out anyone's shares.

We maintain detailed records of all your investments and assets for which you will at all times remain the beneficial owner. We do not lend stock held in our HL or PMS service.

https://www.hl.co.uk/security-centre/how-safe-is-your-investment

*Banks however are a different matter.

Yeah that's my interpretation canary.. alot of brokers on their with holdings on behalf of PIs (mine are HL).. they will frequently be sold and bought.. less sticky hands than the IIs.