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@onsolidground Matt doesn’t need 50% of Ingenuity shares to get his golden share. He just needs to be the largest shareholder according to the articles of association. He’s probably already achieved that.

As results from other companies in the nutrition sector come in showing improving performance there’s nowhere for THG management to hide. Excuses like the increasing price of whey apply to everyone. But THG continues to underperform. Very frustrating. It shouldn’t be rocket science for an established company in the nutrition sector to successfully ride a growing market.

That’s not my recollection Stanley. But let’s not argue over £7m. The point is the cash is nowhere near £400m.

Will people please stop mentioning £400m cash holdings. The update clearly said that this was before the Demerger when THG generously handed over £88m (out of a total raise of £95m, the balance going on cost of the raise). So the true cash position at the start of the year was £312m.

Most normal people will have moments of self doubt when things don’t go according to plan. I genuinely doubt that the egotistical Moulding has ever looked in the mirror and asked himself if any of this is his fault. He’s completely deranged.

And through all of this interminable destruction of shareholder value I’ve never once heard him acknowledge the pain that shareholders are feeling let alone offer any sort of apology or remorse. As for the mute Chairman, what a bloody cheek he has in trousering £400+k a year. I voted against all of them being re-elected at the last AGM and will be doing the same this year.

Thinking about it more, their model is business to business rather than selling direct to consumer so they must be sacrificing a decent percentage of their margin to the retailers. Makes THG nutrition’s EBITDA margins look even more pathetic. What the hell do those crazy high admin expenses get spent on.

Their sales are growing and they managed to generate £26m EBITDA on sales of £86m. They’re doing something right. Plus they don’t have Matt as CEO.

Let’s be honest, for all the endless talk on here about shorters and their dark arts the share price is where it is for a reason. Put aside the ineptitude of the current management and Board in mismanaging their relationship with the City, the real reason why the share price has been on a long term decline is the poor performance of the underlying businesses. THG operates in two high growth markets but has failed to capitalise on the opportunities presented. Shorters may be unwelcome but it is the management and Board that have created the circumstances in which the shorters can prosper. The solution is in their own hands. The opportunity is there. Can they grasp it. I’m speaking as a long term holder of more shares than is sensible but was driven by averaging down and a belief in the fundamentals of the business (although now in danger of evaporating I’m afraid).

I just wish he’d put as much effort into actually running the business effectively (ie selling stuff at a profit) as he does coming up with complicated corporate restructuring events.

Unless, for whatever reason, Remainco is able to show some of the payments to Ingenuity within Cost of Sales rather than Distribution costs.

The distribution costs of remainco for the 12 months to June 2024 (as per the demerger documentation) was £255m. However the Revenue of Ingenuity is shown as £671m for the same period. Not sure how the difference of over £400m is explained - some of it will be third party revenue but not £400m surely.

I’m hoping (but not expecting) that we get more info on what’s included in the “administration costs” line. In the 12 months to June 2024 admin costs for Remainco (marketing spend and payroll costs) were £439m. How much of that is marketing spend and how do they manage to spend so much on marketing, and what scope is there to reduce this to enhance the EBITDA numbers and Free Cash Flow.

Just looking at those Remainco numbers for 12 months to June 2024 again. Gross profit is £792m out of which comes distribution costs of £256m (largely to ingenuity I assume), and then some £439m “administration costs”. The narrative says that these admin costs largely comprise of marketing spend and payroll costs. I’d love to know the split between marketing and payroll, but given the relatively low number of employees in Remainco this looks like marketing spend is enormous. Surely this is an area where some sensible focus could easily deliver savings and enhance the EBITDA and free cash flow numbers. This shouldn’t really be rocket science.

It’s good news no doubt but isn’t the problem with the franchised sales that the margins are very low so will not have a huge impact on the bottom line. Don’t get me wrong , every little helps of course.

If those contracts between THG and Ingenuity aren’t on genuine commercial terms then MM and the rest of the board are in danger of facing a class action from disgruntled THG shareholders, given their public assurances that they are on proper commercial terms.

Ah yes that’s possible Cong. Cheers

@gsolomonuk How do you explain that the actual number of shares that Sofina hold has increased. This wouldn’t have happened if the only explanation for the increase in their percentage holding was due to them staying fully in Remainco as their number of shares wouldn’t have changed at all.

That can’t be right Moneymad. At the very least you should have received your 13.4% providing you filled in the forms correctly. Indeed from what others have said you should have got an over allocation of at least up to 30% if that’s what you’d asked for. Definitely something not right if you didn’t even get the 13.4%.

Moulding had 184m shares last year. Add the 20m shares he got in the placing is 204m. The TR1 today shows he now has 122m. Looks like he swapped 82m shares into Ingenuity. Total shares in Ingenuity is 204m so by my reckoning he now has just over 40% of Ingenuity.