Member Info for sj74

Cut off date will be in the circular bit like when a share goes Ex-div.

Jed, they have told us in the RNS, circular to come by beginning November and demerger to happen in December. So December is when the Newco shares and remains co shares get issued. The circular will give timetable etc.

Around abouts last week of the month-1st November.

I'm really confused why everyone here appears so confused 😂

Still THG. Remainco and newco just terms used to simplify the process for RNS etc.

Pretty simple really. A decent broker will give you the option breakdown and deadline etc.

Probably a GM first to vote on it not long after circular is produced.

They will get in touch with you once the circular/timetable is produced. You will give your decision based on the option you want, and if it's remains co you will get your entitlement in your ISA.

Should get our placing shares tomorrow boys and girls. :)

Drops 10% buy more, then rises 200+% over the next year or 2. Sounds good :)

The demerger is going to make it very interesting here for next year..

Peel hunt went off peers so value of 1x sales.. THG nutrition alone is worth at least the current market cap. Whichever way you spin it nutrition and beauty together highly cash generative and the market cap is a joke.

£220 million net debt next year and all that free cashflow I would be amazed if the market still prices THG how it is doing today. There is an opportunity here, that won't be around for long imo..

From the interim results:-

Year-end net debt is expected to be broadly unchanged YoY, with an improvement in cash generated from operating activities and lower capex in H2. Working capital improvements will come from the receipt of previously trapped European VAT, and normalisation of the business mix between Beauty and Nutrition.

So net debt will be back to c£220 million come year end. Year end and going forwards we will be free cashflow £80 million ISH. 2.5-3 years could quite easily be debt free if they do wish. I personally hope they pay a bit down but also target some share buy backs if the share price is still really low..

Why will they need to raise money to clear the debt when they will have free cash flow of c£80 million a year?

It needs at least another few years..

You could sell, but it would be quite crazy to pre demerger imo.. may aswell take your extra remainco shares first..

I think the ingenuity valuation can be huge but I get why it's valued really low for the demerger.. it makes no money and the debt finance providers/banks wont value it at some crazy sums. MM said as such in the analyst call, they couldn't value it at £0 so they went with 'up to £100 million'. EBITDA is still crap really.

I bought more at the placing at 49p even.. but 47p lol.. give it a month or two placing shares settled and post demerger. Xmas rally leading to FTSE index inclusion.. can see it now, ignore the short term mayhem. Imo.

Remainco for me. I'm in for the nutrition and beauty and all the free cashflow. To me, I'm buying and this is the most compelling time for THG as has been for years.. share price isn't great right now but this will be repriced to factor in a profitable post demerger company. Right now 49p and with FCF at c£80million just doesn't quite fit.... Bargain..

Does anyone know where to find the analyst conference call recording?

If it was 1 Newco share for every 5.8 THG share.. say it's 50,000 shares you would end up with an extra 8620 shares for giving up ingenuity. Is that right?