THG has successfully raised £95.4m to facilitate the spin-off of its Ingenuity technology arm into a separate company.
- The fundraising exceeded the initial target of £75m due to strong support from investors and shareholders.
- A significant contribution came from existing shareholders and new investors, highlighting confidence in THG’s strategy.
- Chief Executive Matthew Moulding personally invested £10m in the fundraising effort, demonstrating his commitment.
- The funds will support the development of Ingenuity and be used for general corporate purposes.
THG has announced the successful acquisition of £95.4 million in funds, a move aimed at spinning off its Ingenuity technology division into a standalone entity. This effort follows reports of Ingenuity’s financial underperformance, presenting a strategic response to preserve THG’s broader business health. The group witnessed noteworthy investor confidence, as evidenced by the fundraising exceeding the initial £75 million target.
Existing shareholders contributed £67.7 million through a placing, while a subscription agreement brought in an additional £22.2 million. Additionally, £5.4 million was secured from retail investors, underscoring a robust interest across diverse investment platforms. Such financial backing is indicative of the trust and optimism placed in THG’s strategic direction.
Matthew Moulding, THG’s Chief Executive, personally invested £10 million, signalling his dedication to the group’s vision and future growth. Moreover, Frasers Group made a ‘strategic investment’ of the same amount. This investment comes in the wake of a multi-year partnership between the two companies, aiming to foster deeper collaborative ties.
The additional capital obtained beyond the initial target is earmarked for medium-term development of Ingenuity as a separate entity. This strategic allocation aims to bolster THG’s capabilities while also serving general corporate needs.
Despite a reported 5.2% decline in THG’s group sales to £442.8 million over the recent quarter, certain divisions such as Beauty and Ingenuity showed resilience, helping to offset a more pronounced dip in its Nutrition segment. Moulding expressed satisfaction with the performance of both Beauty and Ingenuity, highlighting improvements in their operational models over the past two years.
THG’s successful fundraising underscores investor confidence and a clear strategic vision for the future of its Ingenuity arm.
