THG successfully raises £95.4m for the strategic spin-off of its Ingenuity division, surpassing the target of £75m through robust investor support.
- New and existing investors showed strong confidence in THG, contributing to the fundraising effort which exceeded initial expectations.
- The fundraising was primarily achieved through a combination of a shareholder placement, a subscription agreement, and contributions from retail investors.
- Significant investments were made by THG’s CEO and Frasers Group, highlighting their strategic interest in the development of Ingenuity.
- Despite a 5.2% drop in THG’s overall sales, the company notes positive growth in its beauty and Ingenuity divisions, setting optimistic expectations for the future.
In a strategic fundraising effort, THG has secured £95.4 million to facilitate the separation of its Ingenuity division into a distinct entity. This move, aimed at providing medium-term funding for growth and general corporate purposes, garnered strong support from both new investors and existing shareholders. By exceeding its initial £75 million target, THG demonstrates significant investor confidence in its ambitious plans.
THG’s fundraising success was marked by a diverse investment strategy. The company raised £67.7 million through shareholder placement, £22.2 million via a subscription agreement, and an additional £5.4 million from retail investors. This multifaceted approach not only exceeded expectations but also reflects a strong endorsement of THG’s strategic direction by the investing community.
Leadership within THG made notable financial contributions, underscoring their commitment to the company’s vision. CEO Matthew Moulding personally invested £10 million, displaying his confidence in Ingenuity’s potential. Furthermore, the Frasers Group made a £10 million strategic investment, aligning with its long-term partnership strategy with THG and LookFantastic, reinforcing their collaborative synergies.
Despite encountering a setback with a 5.2% decline in group sales, THG is optimistic about the future, citing growth in its beauty and Ingenuity sectors as a counterbalance to a decrease in the nutrition division. The group’s efforts to rebrand MyProtein and enhance offline revenue through retailer partnerships have yielded positive results, stabilizing sales performance.
Matthew Moulding, THG’s CEO, noted the company’s strong quarterly performance in beauty and Ingenuity, which he attributed to a comprehensive overhaul of their operating models. Moulding also celebrated THG’s recognition as a top sustainability contributor, emphasizing its ongoing commitment to achieving net-zero targets and the positive impact of recent operational efficiencies on customer acquisition.
THG’s successful fundraising underscores strong investor confidence in Ingenuity’s potential and sets a promising path for future growth.
