Member Info for stanleyb

Matt, if I were to examine THG accounts in full and did an audit, I think that I would identify at least £150 million in savings...there's no way THG should have overheads of more than £1 billion on its £1.7 billion annual sales with the 41% gross margins on sales.. ? How are APN reporting £30 million net profit before tax on just £105 million annual sales?

JAO Adyor 😳

Matt, Whey is a total red herring, APN also have to purchase whey protein, but they make a 46% Gross margin compared to your 41%. As for the £1.1 Beauty Sales, they are not affected by high Whey input prices so what excuse are you aluding to there and it doesn't answer they question as to where over £1 billion in net receipts are dissappearing to in the accounting overheads?

JAO Adyor 😳

THG are haemorrhaging cash compared to APN.. THG had a gross margin circa 41% vs 46% for APN (why 5% lower is unfathomable on THG's 17x revenue). APN made £30 net profit before tax yet THG made net loss on 17x Annual sales? How can THG account for nearly £1 billion in overheads considering Capex has dropped by 80% post demerger and net debt reduced substantially. THG need to get the Auditors back in to see where all the cash is being haemorrhaged! If THG were being run along the same lines as APN it should be reporting circa £250 -£275 million net profit before tax!

THG FY 2024

https://www.lse.co.uk/rns/fy-2024-results-and-q1-trading-statement-lymoz4jac9sxd30.html

APN FY 2024

https://www.lse.co.uk/rns/final-results-ipv08uqh911qvg9.html

JAO Adyor 😳!!!!

Regarding gross margins. They are the same or similar as competitors like APN etc, it's just the internal overhead spend that is not in control. Considering Capex has ben slashed by 80% post demerger, where is all the £1.7 billion in cash revenue dissappearing to Matt? Is it going into someone's back pocket? It certainly seems that way if you compare the overheads at other similar businesses? 🤔

JAO Adyor 😳

At least that's another competitor out of the frame for THG's Beauty division.

https://cosmeticsbusiness.com/malin-goetz-uk-stores-closed-administration-70-jobs-lost

Adyor!

Well Matt, why don't you the Chairman and BOD buy some more shares at the current price, (not discounted)...? If you mopped up 10 million shares at 36p you will help the SP and fc@k over the shorts!

JAO Adyor 😳

Wow cut their target by 900p don't think I've seen a cut that big in a very long time?

Matt it's all down to trust...The markets trust the Management at APN to do the right thing by shareholders but obviously they don't trust the management at THG who only apoear on the face of it, to be lining their own pockets, hence why the lowly share price? Maybe you should read your own Corporate Governance guidelines a little more often?

Leadership & Governance - THG

https://share.google/ygE408Y2yXUTgxGz7

Maintaining appropriate standards of corporate governance is essential to the good management of the business. The Board is responsible for ensuring that THG lives up to these standards, and monitors our policies to ensure that they are appropriate for the nature, status, size and circumstances of our company."

The Board is primarily responsible for enhancing shareholder's interests.

It does this by:

(1) Setting the strategy and direction of the Company

(2) Approving or recommending changes to THG’s structure and capital

(3) Approving and overseeing financial reporting and controls

(4) Approving material agreements to be entered into by the Company

(5) Overseeing communications with shareholders

(6) Taking responsibility for risk assessment and internal controls

(7) Overseeing THG’s overall corporate governance arrangements..

JAO Adyor 😳

Okay Matt whatever you say..but if you think misleading private investors is okay then you are pretty sad individual to say the least..I suggest you read your Statements about RemainCo again from the September 17th 2024 RNS. It's very clear what you said about Profit and cashflow! JAO Adyor 😳

Crafty why are you avoiding answering the Question regarding profits and free cash flow for year ending 2025...The Management CLEARLY STATED that without Ingenuity the Group was already HIGHLY PROFITABLE and CASH GENERATIVE! Just answer that question first instead of looking ahead to year end 2026!!! If what they stated in September 2024 was not true then that would be considered misleading shareholders and the market, which by the way is a illegal for Top Management to do so! Therefore we must assume that the year end 2025 accounts to be published in April with show a significant Profit and High levels of net cash generation, considering also that £102 million cash from Claremont sale and the £55 milion cash injection from the CEO on the 9th Dec 2025, thus reducing debt payments! It was also stated prior to the demerger that Capex was being slashed from over £100 million down to the low 10's of millions so we were told?

JAO Adyor 😳

Crafty your assumptions about THG having "Projected Free Cash Flow: £20-25 million in FY26" is not what I would call highly profitable and cash generative as per the definitions below...THG's management stated that post the demerger that completed in December 2024 that.." THG RemainCo was already Highly Profitable Cash Generative and Capable of Paying Dividends" (see Demerger RNS dated Sept 2024), therefore the fully audited figures for Year Ending 2025 to be released in April should already show High EBITDA and Free Cash Flow, otherwise THG's management have clearly mislead investors and the Markets have they not?

https://www.lse.co.uk/rns/escc-transfer-ingenuity-demerger-update-11s0rr0th1uzg9o.html

1. Highly Profitable (The "Paper" Success)

​Profitability is an accounting metric. It’s what is left over after you subtract expenses from revenue. When a company is "highly profitable," its margins are excellent—it earns a lot of money for every dollar it spends.

​2. Cash Generative (The "Wallet" Success)

​Cash generation (often called Free Cash Flow) refers to the actual physical money moving into the company’s bank account. A "cash generative" business is one that consistently produces more liquid cash than it spends to keep the doors open.

JAO Adyor!!!!

Continued....

The CEO of a FTSE 250 company is not allowed to issue misleading information to the market. Doing so is illegal under UK law and strictly prohibited by financial regulations.

Such actions constitute market abuse and can lead to severe penalties, including imprisonment for the CEO and massive fines for the company.

Here is a breakdown of the regulations and consequences based on the Market Abuse Regulation (MAR) and the Financial Services and Markets Act 2000 (FSMA):

1. The Legal and Regulatory Framework

Market Abuse Regulation (MAR): Under MAR, it is illegal to disclose inside information unlawfully or engage in market manipulation.

FCA Rules (Disclosure and Transparency Rules - DTR): Listed companies must ensure that any information released is not misleading, false, or deceptive.

FSMA Section 397: It is a criminal offence to knowingly or recklessly make a statement, promise, or forecast that is materially misleading, false, or deceptive, or to dishonestly conceal material facts.

Section 90A FSMA: This allows investors to claim for losses if they relied on misleading information published to the market.

https://www.lse.co.uk/rns/escc-transfer-ingenuity-demerger-update-11s0rr0th1uzg9o.html

I asked AI a question. Is a CEO of a FTSE 250 public listed company allowed to issue misleading information to the stock market? This is what it said.

No, the CEO of a FTSE 250 company is not allowed to issue misleading information to the market. Doing so is illegal and constitutes a serious breach of UK financial regulations, potentially leading to severe criminal and civil penalties.

Listed companies and their officers (including CEOs) are subject to stringent regulations overseen by the Financial Conduct Authority (FCA), designed to ensure market integrity and transparency.

Here is a breakdown of the restrictions and consequences based on UK market regulations....

Let's see what is published in April Annual Accounts..

We should be expecting to see; High Profits, High Cash Generation and a Dividend declaration"!

https://www.lse.co.uk/rns/escc-transfer-ingenuity-demerger-update-11s0rr0th1uzg9o.html

​This is what AI also says.....

1. Highly Profitable (The "Paper" Success)

​Profitability is an accounting metric. It’s what is left over after you subtract expenses from revenue. When a company is "highly profitable," its margins are excellent—it earns a lot of money for every dollar it spends.

​2. Cash Generative (The "Wallet" Success)

​Cash generation (often called Free Cash Flow) refers to the actual physical money moving into the company’s bank account. A "cash generative" business is one that consistently produces more liquid cash than it spends to keep the doors open.

JAO Adyor!!!!

Inginuity is like valuing Bitcoin...it could be worth £ millions or nothing!

You've been watching to many conspiracy films...

What a load of nonsense!

If I don't see "High Profits, High Cash Generation and a Dividend declaration" I will be calling out the Chairman and CEO as liars...based on what has been officially announced and stated previously in RNS. Hope it isn't the case but let's wait and see what the full 2025 audited accounts reveal in April!

JAO Adyor 😳 😳

Based on the below definitions of "Highly Profitable and Cash Generative." I will expect the 2025 year end audited accounts to show at least £150 Net Profit after all expenses, tax, goodwill, loan interest etc. I Would also expect from the high cash generation to have at least £200 million in the bank (not including any credit facilities).. Therefore I would expect a dividend to also be paid.

JAO Adyor!!!!! 😳 😳

​This is what AI says.....

1. Highly Profitable (The "Paper" Success)

​Profitability is an accounting metric. It’s what is left over after you subtract expenses from revenue. When a company is "highly profitable," its margins are excellent—it earns a lot of money for every dollar it spends.

​2. Cash Generative (The "Wallet" Success)

​Cash generation (often called Free Cash Flow) refers to the actual physical money moving into the company’s bank account. A "cash generative" business is one that consistently produces more liquid cash than it spends to keep the doors open.

Adyor!!!!

Has anyone asked Mr Moulding what this a actually means or was it written on the back of a cigarette packet by the Chairman?

."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."

?????