Member Info for Yorek

Of interest to Matt, if he is planning to take it private…..

“He will also confirm that the Treasury has struck a deal with nine of the largest pension providers that would result in firms earmarking 5% of retirement funds towards private investments.

The government will create new investment vehicles that would give future retirees a stake in homegrown private companies – including in fast-growing fintech and biotech startups – that have increasingly snubbed the London Stock Exchange and turned to foreign investors for cash.”

https://amp.theguardian.com/business/2023/jul/10/jeremy-hunt-to-unveil-pension-fund-reform-plan-to-help-uk-startups

I feel like the funds are too conservative to buy stocks early, especially in a company with so much take over/private speculation….but either way, lots of upside to look forward to

Maybe Matt is taking the line required with McDonald, considering his involvement in Tech companies.

This suggests that Belerion Capital (McDonald’s company) invested in Secret Sales in May 2023:

https://beautymatter.com/articles/secret-sales-secures-10-million-in-series-b-funding#:~:text=Secret%20Sales%20closed%20a%20%2410,venture%20studio%20Big%20Ideas%20Group.

What’s really fascinating if true, is that this link suggests that THG invested too, on May 2nd 2023: https://www.crunchbase.com/organization/the-hut-group/company_financials

Anyone aware or have any knowledge to verify this?

My notes say McDonald has a similar amount of shares to TGL, which is circa 2.5m shares….so maybe Matt needs Iain to roll….

It’s difficult to track dates on LinkedIn, but when he posts on there, he tends to repost on Instagram that evening.

On Instagram his last post appears to be 27th June.

He has posted multiple times, each month, for at least the last 4 months….but nothing in July yet.

Why do you think they won’t roll?

The voting at the AGM did not show any dissent (apart from Iain McDonald) and even if Sofina and Balderton are unhappy, as was rumoured but unproven a while ago, they hardly hold the key. Unless you know otherwise??

I feel like the plan is hidden within Matts post about their rejection of Apollo, where these points were made:

• don’t bid if you want 51%

• don’t bid if you want PE controls across beauty and nutrition and controlling equity rights

• don’t bid if you plan to use debt to leverage up

• don’t bid if you won’t allow existing shareholders to stay invested

• it’s unpleasant being listed in London.

• THG would be worth billions more away from the daily market manipulation.

• THG is just getting going

All of the above would stack up for an external investment from QIA/ME/Dubai etc., supporting a take private deal or a separation and listing of Ingenuity elsewhere, but I’m usually wrong.

Thank you HH; appreciated

HH - doe you know if Kelso still have the proceeds from their last fund raise to spend, or have they spent it and taken positions elsewhere?

I struggle with the valuation too, until I reference previous deals, particularly for nutrition, which is my area of primary interest.

For example, we were told that FY 2022 Group trading performance for THG Nutrition was £672.4m.

In 2021, Grenade was was bought by Mondelez (Cadburys US parent company) in the following deal:

“Mondelez has acquired protein snack bar maker Grenade for £200 million, a 40x multiple on the company’s 2019 profits of £5 million and a near 4x multiple on its £51.6 million turnover. The fee also represents a more than 2.7x return on the £72 million investment majority shareholder Lion Capital made in the business in 2017.”

https://www.business-sale.com/news/business-sale/mondelez-acquires-grenade-at-40x-multiple-221314

Grenade moved from the sports category into retail, much like we are and at the time, I thought this valuation was pretty unbelievable too.

Premier Foods, where Helen Jones is also on the Board, is an international licensing partner for brands.

If MyProtein believe the brand can stretch into ambient breakfast biscuits/bakes, pasta sauces, meals, custard etc., the food development opportunities are endless:

https://www.premierfoods.co.uk/About-Us/At-a-glance.aspx

MyProtein named as a major key player in the global almond butter market:

Published July 7, 2023

Polaris Market Research

“According to the research report, the global almond butter market was valued at USD 684 million in 2022 and is expected to reach USD 1,214.74 Million by 2032, to grow at a CAGR of 6.12% during the forecast period.”

https://www.digitaljournal.com/pr/news/polaris-market-research/almond-butter-market-size-trends-share-and-research-insights-by-2032

For me, my trust in “the plan”, whatever that may be, was cemented with the appointment of Sue Farr and Helen Jones as NEDs. These are seasoned professionals, with nothing to prove. With such illustrious CV’s, they certainly won’t be risking a hard fought reputation on a company that will not live up to expectations, whether that’s public or private.

The map in this dated article has the property that MM took over. It does not include the hanger reported in todays news.

https://amp.theguardian.com/business/2022/jan/11/matthew-moulding-the-curious-case-of-thg-founders-property-deals

Axioms reports:

“Last year the company had $140 million in sales, while in 2021 it had $100 million, in 2020 it had $45 million,”

It’s growth and reach (17000+ stores) is probably the primary interest: https://www.afp.com/en/news/1314/mars-acquires-nutritious-meal-company-kevins-natural-foods-202307052271601

I’ve added again today too, as I’m here to see the longer term horizon (if allowed to) and believe that fundamentally this share is critically undervalued.

Good luck all

…. and a Summer month at that.

If you’d sold in May and gone away, as the old saying goes, you’d have missed it.

I think it’s acting as if something is going on.

MM would love to see the fast money and shorters suffer, so I wouldn’t put it past him to start buying from with his new liquidity through summer. At these prices, 11% of the company. If he does, what would that do to the SP?

You’re either in or out….and there may be disappointment or jubilation on the horizon, who knows which…

I would love to see continued good news flow and therefore an RNS confirmation of property dealings, but I just don’t see a requirement for it. Especially when the historic Guardian article suggested MM bought more THG property than is being sold now. So what about the rest?

I am certain that MM will use the funds to further his future with THG, so no debate there.

Just tempering expectations, for me and others…especially as I want the SP to hold at/above 84p, so I can feel better …

I don’t see a need for a property RNS when it does happen. Nothing changes for THG, they continue to lease property, just not from MMs company.

If this article is factual, he bought 18 properties, so if these are the only ones to be sold, it feels like a capital raise rather than a clear-up ahead of premium listing…..unless there’s more to come:

https://amp.theguardian.com/business/2022/jan/11/matthew-moulding-the-curious-case-of-thg-founders-property-deals