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  • Writer's pictureMark Watson-Mitchell

THG – Matt Moulding cedes his ‘Special Share’ and strengthens Board ahead of today’s AGM

Shareholders in beauty and nutrition online retailer THG (LON:THG), which is holding its Annual General Meeting to approve its results for the year to end December 2022 today, will be surprised at its latest moves.

Strong first half 2023

Along with the AGM Trading Statement, that reported the strategy of focusing upon profitability and cash generation, has seen the group having a strong Q2, leading to a significant increase in first half profits.

Consensus across twelve brokers analysts

Expectations for the current year are for a 0.5% revenue growth to £2.25bn, with adjusted EBITDA of £118.5m based on a margin of 5.3%.

For next year the view is going for a 9.6% growth in revenues to £2.46bn, with adjusted EBITDA gaining to £167.6m, on an average 6.8% margin.

Corporate Governance Moves

The group also announced that it had been notified that Founder and Chief Executive Officer Matthew Moulding had today transferred the Special Share held by him and, as a result, all rights of the Special Share have now ceased.

That will prove to be a precursor to the group moving to a Premium Listing in due course.

The company also strengthened its Board by appointing Helen Jones (ND with Premier Foods, Halfords, Virgin Wines, Fuller Smith & Turner, as a new Non-Executive Director, while Iain McDonald has given up his ‘controversial’ role on the group’s Remuneration Committee.

Chairman Lord Charles Allen commented about Helen Jones:

"This appointment reinforces the Board's commitment to improve its corporate governance and continually enhance its composition.”

Conclusion – engendering more investor interest

It may well be a ‘bumpy’ AGM starting today at 1pm in Altrincham, especially as shareholders may well be demanding answers about the group’s rebuffing of the Apollo Group’s approach in April.

There are still a number of global Private Equity players with stakes in the THG quoted capital – what will they be doing in response to the AGM news?

The group’s shares have opened nearly 5% better this morning at 77.5p.

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