Under pressure from the online beauty business, THG has moved to reassure the city that it is in a good position after its shares plunged nearly 35%.
Shares closed down 151.8p at 285p yesterday, when it had its capital markets day. It had seen shares fall after it announced plans to exit its beauty business. Instead, THG will focus on Ingenuity — its promising, but still very new, e-commerce platform.
It said last month that THG Beauty, which generates annual sales of about £750 million, is to be delisted and listed on a public share-trading exchange in 2022. THG will continue to be the largest shareholder.
The firm, which sells nutrition, vitamins and beauty products and licenses its payments technology, addressed the decline in the share price today. It confirmed that “no notable reason is known for this material share price movement, and no new information was disclosed in this incident”.
THG, formerly called The Hut Group, which floated at 500p in September last year, said that since then, it has “consistently exceeded its targets set at the time of the IPO and recently posted a strong debut across all divisions”. Half-yearly performance is reported. Group revenue of £958.8 million, +44.7%”.
It said its liquidity position is also very strong as it enters its peak trading season, with £700 million in cash available in September 2021.
The firm, led by founder Matthew Molding, will report its third-quarter update on October 26.