THG has successfully raised £95.4 million, surpassing its initial target to support the separation of its Ingenuity technology arm.
- The company garnered strong support from new investors and existing shareholders during the equity raise.
- Funds were accumulated through various channels, including a significant contribution from existing shareholders and retail investors.
- Prominent backing was received from the Frasers Group, alongside a personal investment from THG’s CEO.
- Despite a decrease in group sales, THG reports growth in its beauty and Ingenuity sectors.
THG has announced the successful raising of £95.4 million to facilitate the spin-off of its Ingenuity technology branch into an independent company. This fundraising effort exceeded THG’s initial target of £75 million, highlighting robust support from both new and existing investors. The funds were garnered through multiple channels, including a substantial £67.7 million raised via a placement with current shareholders, alongside £22.2 million from a subscription agreement, and an additional £5.4 million from retail investors.
New investment avenues were critical to this achievement. Chief Executive Matthew Moulding personally invested £10 million, demonstrating significant commitment to the company’s strategic direction. Furthermore, THG received a £10 million strategic investment from the Frasers Group, a key partner with whom THG has an ongoing multi-year alliance.
Despite a reported 5.2% decline in overall group sales to £442.8 million during the three months ending 30 September, THG noted improvements in specific areas. The company’s beauty and Ingenuity divisions exhibited resilience, posting growth that counterbalanced a 10.5% drop in the nutrition segment. This is attributed to the MyProtein rebranding effort and a notable 17% increase in offline revenue growth from retail partnerships.
Matthew Moulding expressed satisfaction with the progress, citing a ‘solid quarter of delivery’ across the Beauty and Ingenuity sectors. The CEO noted the completion of significant operational changes over the past two years, culminating in improved performance metrics. Additionally, in September, the Nutrition division achieved its strongest sales performance since January, reflecting the positive impact of their strategic initiatives.
THG’s commitment to sustainability has not gone unnoticed, with the company being acknowledged among the top 250 globally for its sustainable practices. As THG prepares for its peak trading period, it has streamlined operations across its network, enhancing efficiencies that benefit both Ingenuity clients and customer acquisition strategies.
THG’s proactive efforts in restructuring and investment illustrate its strategic push towards enhancing its technological and operational capabilities.
