Thg Share Discussion Threads

[debsdowner] 07/2/2022 11:29

No RNS all puff and smoke dear oh dear.

[billionarebob] 07/2/2022 11:24

I like the fact that the PEs contacted THG, I also like the fact that there is more than one party interested!!

'Representatives from Advent International have reportedly visited the firm’s Manchester headquarters while LA-based Leonard Green is understood to have also expressed an interest.'

[billionarebob] 07/2/2022 11:22

THG is being circled by private equity firms for a potential buyout.

hxxps://www.cityam.com/private-equity-firms-circle-embattled-retailer-thg/

[billionarebob] 07/2/2022 11:16

I like this bit the best :)

It assumes a recurring revenue per website of £170,000 pounds and a recurring revenue mix of 60% so it doesn't include any of the new business that we currently can win, have won, and expect to win later in the year.

[billionarebob] 07/2/2022 11:14

Here you go :)
THG Ingenuity extract from Jan 2022 webcast:
-----
The Position then with Ingenuity Commerce the annual growth rate was 135% we delivered over 15 million revenue in the quarter which was over 30% higher than our previous record quarter.
In terms of the key stats that we would pull out, we increase the number of live websites to 187, which is a 100 up in the year.
The recurring revenue per website increased to £240,000 pounds, the recurring revenue mix was at 72%, now our new revenue run rate has increased to 61 million.
Now those stats reflect how successful J&V growth was with our clients in the quarter.
In addition, although we don't mention anything specifically ourselves, you may have picked out the Matalan press release. Where will be working with them on their digital revolution?
I would put a substantial amount of work into winning substantial clients like that, although none of the revenue on that account will be recognised in this year. That will start to kick in quarter one, along with other substantial wins that we have got.
And I remind everyone in terms of guidance for 2022 of 108 to 112 million, that's predicated on launching 400 and taking a number of client solutions to 400 from the 109 that we have got at the moment.
Which is 85% of those contracts that are already contracted with us. It assumes a recurring revenue per website of £170,000 pounds and a recurring revenue mix of 60% so it doesn't include any of the new business that we currently can win, have won, and expect to win later in the year.
We are super confident on the numbers for 2022 and very proud of the growth that we've delivered in the success of working with our clients in 2021.
-----

[one_frankel] 07/2/2022 11:08

Bob, they've never provided any 'Finer Detail' to Ingenuity so how they can possibly make such bold statements!

[billionarebob] 07/2/2022 11:04

Mr simmons they have invested over 1 billion in fulfillment improvements.
Please watch the video.



You say that there is zero value in beauty and nutrition but £1.6/2bn in ingenuity?
Strange valuation but I guess everyone is entitled to an opinion.

Did you know that they were processing over 1 million orders a day!!

That's 700 orders a minute every 24 hours!!!

[mrsimmons] 07/2/2022 10:54

I don't care about EBITDA I look at free cash flows and it doesn't generate any, in fact it lost £120m of cash in 20 and 160m in 21 and with cap-ex forecast to be the same the next couple of years it still loses cash (i reckon c.£100m+ in 22 and 23). and that is before you add in the exceptionals which are not exceptionals - they mostly look like BAU to me. It's a dog. Ingenuity I agree - that is the only thing it has going for it. £1.6-2bn is about right.

[billionarebob] 07/2/2022 10:53

Did you know that THG has spent over 1 billion in fulfillment improvements? Have you seen the new THG workforce? They are amazing they can process over 1 million orders a day, can work 24-hour shifts 365 days of the year, never get sick, don't want any wages, will work bank holidays, don't ask for a pension, you don't need buses to ferry them to an from the distribution units, don't want a union and will never ask for a pay rise.

Watch the video, absolutely amazing like something from a sci fi movie



Escalating electricity prices is not a problem, these little fellas can work in the dark!!

[billionarebob] 07/2/2022 10:42

Forgot to mention the market currently values Ingenuity at zero!!

[mrsimmons] 07/2/2022 10:37

As I said before, this hound doesn't generate any cash. The "adj EBITD" number is fantasy stuff exc. exceptionals (most of which is BAU) and lease rentals. The annual cap-ex cripples the remaining operating cash flow. Margins are going down this year so the cash flows will only get worse. £120m cash outflow last year - will take years to turn that around on these dogsh1t margins.

[goforgold1] 07/2/2022 10:34

Wait till USA opens they love shorting THG .

[allenquatermain] 07/2/2022 10:28

Who were the bellends saying it would go over 230p when the results were announced ?

tee hee

[billionarebob] 07/2/2022 10:25

Did RBC know something?

RBC Capital ups rating on THG to 'outperform'

Tue, 25th Jan 2022 12:12

(Sharecast News) - RBC Capital Markets upgraded THG on Tuesday, arguing that it saw "fundamental value" in the shares.
Shares in the e-commerce specialist, formerly The Hut Group, have lost 40% so far this year, and are now down more than 80% over the last 12 months.

THG specialises in selling beauty and nutrition products as well as providing e-commerce services for other companies. But the stock has suffered as investors questioned its corporate governance, strategic technology and the valuation of its core business, THG Ingenuity.

The firm also warned last week that it would miss full-year profits guidance following fluctuations in forex and commodity prices.

But in a note published on Tuesday, RBC said: "Amid the controversy around THG, we see fundamental value in the shares. Our analysis of Ingenuity's potential suggests SoftBank's valuation might indeed be reasonable, rather than fair-fetched.

"With the shares down a further 60% in the last three months, top line earnings expectations reset and catalysts ahead, we see risks skewed to the upside from here."

RBC upped its rating to 'outperform' from 'sector perform'. It left its price target unchanged at 500p.

As at 1200 GMT, shares in THG were ahead 3% at 124.55p.

In May 2021, THG struck a $2.3bn deal with Japanese conglomerate Softbank. Under the terms of the deal, Ingenuity will be spun into a separate company with Softbank having the option to acquire a 19.9% stake for $1.6bn, which values the unit at around $6.3bn.

A number of analysts and investors have since challenged that valuation, however, with some sceptical the deal will complete.

RBC said: "We sympathise with the challenge in valuing Ingenuity. Indeed, it is what previously kept us on the sidelines.

"However, its momentum in the 2021 full year - we believe its site order book more than doubled - and improved disclosure have been overlooked.

"We project that Ingenuity Commerce could increase tenfold to £0.5bn of revenue in five years, with at an EBITDA margin of around 60%, drives our discounted cashflow valuation for the segment of £4.4bn. Yet the market is attributing no value at all."

RBC added that it did not expect Softbank to walk away.

It also pointed to "notable steps" THG had taken to improve its structure, including the removal of chair and chief executive Matthew Moulding's special share rights and a commitment to split his roles.

[sr2day] 07/2/2022 10:21

sub 120 on the horizon again.

[billionarebob] 07/2/2022 10:20

Tick Tock, Tick Tock it is only a matter of time :)

[hamhamham1] 07/2/2022 10:19

Debs. Billion pound market cap companies aren't penny shares, is Lloyds also a penny share at 52p?

[billionarebob] 07/2/2022 10:19

Leonard Green and Advent International are said to be exploring a buyout

[billionarebob] 07/2/2022 10:19

Private Equity Firms Circle THG :)

hxxps://www.retailsector.co.uk/625587-private-equity-firms-circle-thg/

[ch1ck] 07/2/2022 10:07

Nicky said Tom

[tomzimerman] 07/2/2022 10:06

I think you had a taster of what's to come Friday, cracking short from the highs but you guysngirls are pushing your luck down here. To put it simply that is