Member Info for stanleyb

What's Beauty making, as you all seem to be forgetting it sells over £1.1 billion of THG's £1.7 billion annual turnover...My corner shop makes a 50% margin but they are never going to overtake Tesco's £30 billion sales are they. SIS and APN are tiny minnows compared to THG Nutrition...THG Nutrition and Beauty make profits it's been stated by the CEO and BOD the margin is never going to be 45%..otherwise THG would be valued at £5 billion..JAO Adyor

What's Beauty making, as you all seem to be forgetting it sells over £1.1 billion of THG's £1.7 billion annual turnover...My corner shop makes a 50% margin but they are never going to overtake Tesco's £30 billion sales are they. SIS and APN are tiny minnows compared to THG Nutrition...THG Nutrition and Beauty make profits it's been stated by the CEO and BOD the margin is never going to be 45%..otherwise THG would be valued at £5 billion..JAO Adyor

Well according to Farmer Giles, THG might be in discussions regarding Nutrition sell off ..Would be nice if a £950 million bid for Nutrition division was announced as it would certainly give the remaining shorts something to think about. JAO Adyor!!!!!!!!!

Peel Hunt, THG's house broker, put out a note pointing out that it recently valued THG Nutrition/MyProtein at £775 million, equivalent to 1.2 times revenue and 12.8x on an EV/EBITDA basis.

"In a bid situation, we would expect a significant premium to this, with recent transactions averaging 2.5x revenues, valuing the business at over £1.5 billion."

The analysts also noted the current proposed offer for Science in Sport PLC (AIM:SIS), equivalent to around 1.5 times revenues, a multiple which would value THG’s Nutrition business at circa £950 million.

It's two offers now £950 million from Big European food Co...I'm sure Farmer Giles is onto something big...Adyor!

Big US Food brand about to make offer of £900 million for My Protein is what Farmer Giles has heard down at the Old Nags Head Inn. Adyor!!!

Wednesday's update depends whether the CEO is behind his shareholders or trying to con them don't you think?

Exactly as I and many other have already spoken about, despite all of the detractors and shorts spreading FUD..SIS and recently floated APN are just two examples of why THG looks totally undervalued on any normal basis including allowance for current debt levels...even on a very minimal base valuation of just 1.5x sales (£1.7 billion x 1.5 = £2.55 billion or 190p per share) but here we are at 28p.... If THG sold its Nutrition division to let's say a large US or European food group for a base valuation of £900 million (£600 million x 1.5 sales), then THG would still consist of a Beauty division with over £1.1 billion sales, leaving THG with net £500 million in cash and zero debt...the £500 million cash could be spent on boosting organic growth and bolt on acquisitions with plenty of cash still in the bank...Just a case of waiting for something significant to happen and the market waking up to THG's true value. Aimho. Adyor!!!

If Dav has defrauded the FCA, LSE and Inland Revenue then defrauding investors would be very far down his list of concerns don't you think? Can we assume he's done a runner then?

That's £2 per share....minus £400 million loan...that's £1.70 per share....?

So Matt, the BOD and Chairman have told the market they will not sell just My Protein for £600 million so how much do they put on Beauty which has nearly twice the business of the whole Nutrition division? Let's say 1.5x sales equivalent to £1.1 billion x 1.5 = circa £1.7 billion us say £800 million for Nutrition and you get £2.5 billion at just 1.5 x sales for the ehole THG business...?

Oke you still haven't answered the question what are THG paying for and could THG or someone else do it for less..I'm sure the BOD and big shareholders must have agreed the contract.

You still haven't answered the question of what THG are paying Ingenuity for...does that include advertising, sourcing, storage and logistics etc? Ingenuity aren't going to offer that service for free are they, and what would it cost THG to do all that themselves?

Exactly..when APN floated at about 135p and then hit 155p in Feb this year, I could just see the crash coming over there market cap touched near £400 million on just £99 million annual sales. I don't short as totally disagree with it, but it must have been the easiest short on the market at the time.....JAO Adyor.

Oke here's a theory for you..THG sells all of Nutrition for £800 million that's the base valuation from Peel Hunt = 1.3 x sales..THG could pay off the £400 million loan.. and still have £400 million in the bank. THG would have a Beauty business with annual sales of over £1.1 billion with £400 million cash in hand and no debt...and you still think it would be worth the same as APN at £300 million market cap, when they still only have just under 10% of THG's Beauty division sales? Run those figures past OSG..

I don't think THG is ever going to be worth 17 times APN but having the same market cap is ridiculous...THG should easily be worth £1 a share currently..JMO Adyor

Yes I can..but THG would still have to pay something for the service Ingenuity is providing...does it include advertising, sourcing, storage and logistics?..Would you want to pay £300 million for THG or £300 million for APN that has less than 6% of THG's business?

Just to put that in perspective..if sales stayed flat at THG and APN...THG would have over £17 billion in sales compared to just £1 billion at APN on current figures..yet APN has a market cap almost the same as THG's entire operations on about 6% of THG's sales. No sense in THG's current market cap don't you think? JAO Adyor

It may be £3.4 billion to pay for Ingenuity services..( does that include advertising, sourcing, storage and logistics?) but THG would have over £17 billion in sales during that period... plus whatever sales growth there is over the next 10 years so you'relookingat over £20 billion in sales potentially.

Apparently a few over on the THG board think this is a sham company set up by MM and his mates to steal My Protein from THG shareholders..sounds a bit far fetched don't you think? Adyor..!