RE: Not sure what is going on13 Mar 2025 21:35
The net debt on what are two "Highly Profitable" business in the words of the Chairman and BOD is manageable...So why not just throw £50 or £100 million at the shares in a buy back and squeeze the Shorts and CFD's out of the frame?
"Post a demerger, the Group would consist of THG Beauty and THG Nutrition, two globally leading consumer businesses, which are highly profitable, cash generative and capable of paying dividends.".....then THG won't have any issues whether they are in the FTSE 250 or not. There's also a potential £30 million VAT refund in the pipeline as per the results update.
· Specifically, capital expenditure will reduce to c. £20m pa (FY 2024 pre Demerger guidance: £100m to £110m) and cash lease costs will reduce to c. £22m pa.
· Future cash generation will facilitate a measured reduction in gross and net leverage, with RemainCo targeting continued progression to a neutral net cash / net debt position.
'GROSS' leverage materially reduced, c. £550m[1] year-end cash and available facilities. The Group has strong liquidity with c. £400m of cash and £150m undrawn Revolving Credit Facility at the period end, ahead of the Demerger which completed on 2 January 2025.
“Our anticipated inclusion in the FTSE 250 marks an important moment in THG’s evolution following the demerger of THG Ingenuity,” said CEO, Moulding.
“As a global beauty, health and wellness consumer brands group, we continue to make significant progress against our strategic priorities.”
JAO Adyor!
https://www.lse.co.uk/rns/q4-2024-trading-statement-2tx8ubiykyr2qoi.html