Thg Share Discussion Threads

[kubera369] 05/4/2022 07:23

Full year results confirmed tomorrow 6th AprilhTTps://www.cmcmarkets.com/en-gb/news-and-analysis/thg-shares-rise-on-governance-overhaulTHG shares rise on governance overhaulWRITTEN BYCMC Markets05 Apr 2022Shares in Manchester-based online retailer THG, formerly known as The Hut Group, have fallen more than 80% in the last 12 months amid investor concerns over the company's structure and governance. However, last month the firm appointed former ITV chief executive Charles Allen to lead its board and signalled that further changes could be in the pipeline. The market reacted favourably. Since dropping to a record low of 70.49p during intraday trading on 7 March, the shares are up by about a third. Is this a temporary bounce or can Allen help restore investor confidence over the long term? The decline of a tech darling – but can it bounce back?The Hut Group – which sells beauty and protein products online, and also provides technology to companies including Homebase and Unilever – was once a UK tech unicorn: a privately held startup valued at more than $1bn. When the company went public on 16 September 2020, strong investor demand inflated the shares to 658p, 32% above the initial 500p listing price, valuing the company at £5.9bn.The IPO was one of the largest in the London market's recent history, identifying THG as a British success story. Investors bought into the narrative that the company's technology would help brands sell direct to consumers, pushing the shares up above 800p in January last year. Then came the backlash.The decline was gradual at first. As recently as last September, the shares were still worth more than 600p. Then on 16 September THG reported its half-year results, which showed that Ingenuity – the firm's marketing and logistics platform – notched up revenue of just £85.8m, forcing investors to question the £4.5bn valuation of the division that was implied by SoftBank's option agreement earlier in the year. That was arguably the moment that investors began to sense that THG's stock may have been overhyped.  Although group half-year revenue came in at £958.8m, up 41.9% year-on-year, the company reported an operating loss of £17.4m. After that, the shares plunged as investors lost confidence in the former stock market darling. On 2 November BlackRock, THG's largest institutional investor at the time, halved its roughly 10% stake in the company, sending THG's shares down 9% that day to a new low of 197p. That prompted chief executive Matthew Moulding, who was also executive chairman in an unusual setup that went against UK corporate governance best practice, to step up efforts to find an independent chair.Allen tasked with refreshing board, strengthening governanceAlmost five months later, these efforts led to the appointment of Charles Allen as non-executive chair. The company said that Allen's task is to develop the management team and refine the group's strategy. In a further bid to rebuild investor trust, THG brought forward the end date of Moulding's "founder's share", an arrangement that allowed him to veto hostile takeovers. The boardroom shake-up also paves the way for THG to pursue a premium listing on the London Stock Exchange, which could see the firm qualify for inclusion in FTSE indices.  The recovery in the share price over the last month suggests that investors' concerns over corporate governance have been addressed, at least to some extent. However, Moulding and Allen have their work cut out, and it will be a long road back to the sort of valuation we saw early last year. Some investors may be hoping for a buyout, while more patient shareholders may settle for a series of steady, incremental improvements in company performance. For the latter approach to succeed, the new leadership team will first need to articulate a vision for unlocking value across the business. That process may begin when the company announces its full-year results at 7am on Wednesday 6 April.Disclaimer: CMC Markets is an execution-only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although we are not specifically prevented from dealing before providing this material, we do not seek to take advantage of the material prior to its dissemination.

[kubera369] 05/4/2022 07:15

Business is being sold or parts of it?

[blueflame] 05/4/2022 00:19

So much going on in the background. I think this can only mean news is coming very soon.

[f56] 04/4/2022 19:58

Watching Putin like a hawk!

[f56] 04/4/2022 17:21

I think I can see what you are saying.

[sanks] 04/4/2022 17:09

Level 4 guide price is set around the ipo price of £5.17.. with a potential breakthrough of this leading to that £10+ area.
Hope this helps

[hamhamham1] 04/4/2022 16:47

Wait, buy, hold.
Simples.

[tomzimerman] 04/4/2022 16:41

Very pleased with that day, cracking start to the week

[red_star] 04/4/2022 16:38

Strong finish

[hamhamham1] 04/4/2022 16:16

Cost £911 for a thousand shares close of Friday.
Cost maybe £960 for the same today.
Tomorrow?

[london07] 04/4/2022 16:09

Kubera - totally agree.

This will ONLY end when the shorters have hit the PANIC BUTTON.

Never seen a share price manipulated so much with no news.

This could be explained by the 90%+ holdings by Institutions/BOD/Sofina/Softbank etc.

[kubera369] 04/4/2022 15:59

Spot on !This has been mauled to death by a lot of fraudulent activity and press.This truly is a very corrupt market and I am confident that the bombed out share price will rise just as fast as it came down.

[1apache] 04/4/2022 15:46

It’s interesting the SoftBank appear happy to hold their position. They have liquidated most of their European holdings. They have a representative on the THG board who will be aware of the current trading position of the company and revised strategic input from the new CEO. He will also have a handle of the full year results. If there was bad news coming he would know well before the rest of the market. SoftBank are still holding. That probably tells us all that we need to know

[wolfofhounslow] 04/4/2022 15:41

Looking a bit strong today

[kubera369] 04/4/2022 15:12

Results date known and these pesky fraudulent shorts need to make a rush to the exit MM is nice and relaxed here and I'm sure has an explosive pay load to deliver

[hamhamham1] 04/4/2022 14:40

Nice spike-ette

[tomzimerman] 04/4/2022 14:39

Thanks for sharing that,

[london07] 04/4/2022 14:30

EPIC scramble.

Anyone seen MM Insta post, this man is chilling in the sun, with not an ounce of worry :)

[grity] 04/4/2022 14:30

Don’t know if it’s of significance.
But can’t go onto there website at the moment.
hxxps://www.thg.com/
GLA

[zb27] 04/4/2022 14:25

Received a message for IR this morning, it will be in line with last year.

So expecting sometime next week.

They probably just dont want an orderly exit of shorters, this will cause a scramble!!!! After all they have done, why give them a heads up!!

Date released late this week, with results early next week!

[kubera369] 04/4/2022 12:03

Very odd, just received an email from CMC markets regarding the week ahead.THG full-year results – WednesdayShares in Manchester-based e-commerce retailer The Hut Group have fallen roughly 80% in the last six months amid concerns over leadership and talk of a falling out with investors. In May last year, Softbank was the biggest participant in a fund-raising round that injected $1.6bn to help fund subsidiary business THG Ingenuity. Softbank must now have mixed feelings about its investment, given how much THG's share price has plunged. If the shares are to rise from current record lows, THG needs to articulate a vision for unlocking value across its various divisions, which include health, beauty and nutrition.In terms of performance, revenues are in fact growing. In September the company reported that half-year revenue was up 44.7% to £958.8m. The beauty division outperformed, growing 59% year-on-year, while nutrition was the weakest division, up 30.2%. At the time, THG said they might look to spin off the beauty business in 2022 to maximise shareholder value and set apart its distinct trading divisions. However, there has been little to no progress on this front, with management yet to lay out a plan of action.Although revenue grew, half-year losses also increased, rising to £81.3m from £49.9m a year earlier. In Q4, the beauty division continued to outperform, with revenue up 36.7% to £407.9m. For the full year, revenue is expected to have risen 35% to £2.18bn. Looking ahead to 2022, CEO Matt Moulding estimates that full-year revenue will rise a further 22-25%.