City round-up: THG; Kape Technologies; Pebble Group; Esken
Manchester online retail giant THG has announced that former ITV boss Charles Allen, Lord Allen of Kensington, is joining as independent non-executive chair with immediate effect.
His appointment follows an international search begun in October 2021 when THG committed to splitting the dual roles of executive chair and chief executive held by founder Matthew Moulding, who will continue as chief executive.
THG said Mr Allen has a clear mandate to refresh THG’s board and further strengthen governance and diversity. As well as reviewing the independent board, he will be working with Moulding in developing the management team, as well as refining the group’s strategy.
The group has seen its value tumble from almost £10bn a year ago to £1.09bn currently.
Allen is a highly experienced chair with industry expertise across retail, media, technology, gaming, food production and manufacturing. He is currently chair of Balfour Beatty, and privately-owned Global Media and Entertainment. Previous positions include chair of ISS AS, 2 Sisters Food Group and executive chair of EMI Music. He was chief executive of ITV plc from its formation in 2004 until 2007, chief executive of Granada Group and chief advisor to the British Home Office.
Matthew Moulding said of Allen: “He has extensive boardroom experience across a range of sectors spanning 40 years. Charles has chaired large, successful, dynamic companies and has experience working with entrepreneurs. Charles’s consumer, retail, digital and media expertise, knowledge and skills will help THG to continue to drive profitable and sustainable growth, deliver for all our stakeholders and to meet the highest standards of corporate governance. Furthermore, on a personal note, his appointment will enable me to focus my attention on delivering the Group’s plans for growth.”
Charles Allen said: “It is a privilege to be joining THG as the board’s chair with a clear mandate to improve governance and transparency, strengthen the board by improving its independence and diversity, review and develop the strategy and support management as it seeks to further strengthen its talented leadership team.
“This is a fast-paced, extremely exciting business which has grown rapidly and has many opportunities for significant future growth. Over several weeks I have had the opportunity to meet the board and senior team, see the operation and understand the finances and business plans. The group has announced a number of strategic options for 2022 and beyond, I look forward to working with Matthew and the team to review these and I will update on progress over the next six months as the plans take shape.
“Matthew is now able to focus full time on the business which, combined with a very strong management team and passionate committed colleagues throughout the business, ensures THG is well placed to deliver for all its stakeholders.”
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Ido Erlichman
AIM-listed Isle of Man-based digital security and privacy software business, Kape Technologies, announced record results for the year to December 31, 2021.
Revenues exceeded management expectations, increasing 89% to $230.7m, while pre-tax profits of $32.6m compared with $7.3m in 2020.
The group raised $351m before transactions costs, in additional growth capital through an oversubscribed placing and retail offer in October 2021 to finance the acquisition of ExpressVPN.
It entered into a new senior secured debt facility agreement in December 2021 of up to $290m, comprising a $120m senior secured term facility, a $80m revolving credit facility and a $90m uncommitted acquisition facility.
Kape said the current financial year has started well and the group has traded strongly. Management is confident that the group will achieve revenues of between $610-624m and Adjusted EBITDA of between $166-172m in the year ending 31 December 2022, the forecasts outlined at the time of the ExpressVPN acquisition.
Chief executive, Ido Erlichman, said: “We are immensely proud of our progress in 2021, having delivered both a record financial performance and completed the most ambitious acquisition programme in our history. The culmination of these collective efforts has been the creation of a truly market leading global digital security and privacy enterprise that is now a trailblazer in how consumers protect their digital lives.
“In 2021, we achieved record customer growth, providing further evidence that our products remain both compelling and highly innovative, and, more importantly, our customers continue to utilise our services for many years.
“Pleasingly, we have carried this positive momentum into 2022 and remain extremely positive about Kape’s prospects. Whilst we remain ever vigilant of the broader macro-economic outlook, we firmly believe our products fit at the heart of the broader cybersecurity arena, which has increased importance to the global community.”
Kape also confirmed today that Oded Baskind has been appointed chief financial officer and as a member of the board of directors.
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Pebble
Pebble Group, the Stretford-based corporate promotions specialist, revealed annual results to December 31, 2021, today that showed a full recovery from pre-pandemic levels.
Sales of £115.1m compared with £82.4m a year ago, while pre-tax profits of £9.3m were up from £5m the previous year.
Balance sheet remains strong and cash was ahead of expectation at 31 December 2021, being £12.1m (FY 20: £7.1m)
The group said its new financial year has started well and in line with expectations. Its Facilisgroup division showed that, year to date at 18 March 2022, gross merchandise value (GMV) was up 57% year on year with partners implemented or contracted awaiting implementation totalling 211.
At Brand Addition, year to date at 18 March 2022, the order intake has been positive and sales invoiced or received to be invoiced was up 11% year on year. The supply chain continues to be well controlled.
Chair, Richard Law, said: “I am very pleased to report on the group’s strong performance in 2021, which saw not only a full recovery from the impact of the pandemic, but an acceleration of strategic progress and new customer wins at both Facilisgroup, and Brand Addition.
“The performance highlights the strength of the group’s leading position in the promotional products industry, the capability of its management, the quality of the technology it continues to build and bring to market, and its sustainability credentials.”
He added: “Facilisgroup and Brand Addition performed well in the year under review, both financially and in building their differentiation in the market. The strong financial performances strengthened the group’s balance sheet, which, together with our ongoing cash generative operations, gives us the ability to continue investing in, what the group board believes to be, high quality strategic opportunities, with the aim of further establishing its leadership position in the very large but fragmented global promotional products market.
“The new financial year has started well and in line with our expectations and the group board looks forward to the year ahead and beyond with confidence.”
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Carlisle-based Esken, the aviation and renewable energy infrastructure group, issued a year end trading update today, for the 12 months to February 28, 2022.
It said its Stobart Energy division continues to play a critical role in the UK’s energy value chain and supporting the transition to a low-carbon economy by sourcing waste wood to supply to biomass plants which generate around two per cent of the country’s energy.
The business ended the financial year trading at the upper end of management’s guidance range for EBITDA of £18-20m. This performance was driven by improved gate fees, increased supply of waste wood and a robust operating performance from its biomass plant customers.
The group owns London Southend Airport (LSA) and Carlisle Airport said it was encouraged that the majority of European travel restrictions have been lifted and airlines have been seeing an improvement in booking volumes for summer 2022, although the impact of higher fuel prices on both customer demand and airline flying capacity is currently unclear.
LSA is well positioned for the recovery and longer-term growth in air travel and, as volumes recover and more established London airports begin to face capacity constraints once again, London Southend Airport’s London catchment area and strong transport links support positive growth prospects.
It revealed that Wizz Air recently decided not to restart its flights from one destination to London Southend Airport for summer 2022. However, the airport will benefit from the return of easyJet flights, with tickets already on sale for flights to Malaga and Palma, and flights to Faro were put on sale on March 17, 2022. The company also continues to have active dialogue with a wide range of airlines with a focus on delivering the right airline agreements for Esken for summer 2023 onwards.
Esken had £72.7m of liquidity available to it at the year-end (31 August 2021: £90.5m), which is ahead of management’s expectations and includes the £14.4m of ring-fenced cash in LSA (31 August 2021: £19.7m), and a £20m revolving credit facility.
Esken has £48.6m of outstanding liabilities payable through to financial year 2024 associated with the liquidation of Stobart Air and ongoing Propius leases and their related costs as of February 28, 2022. As of February 28, 2022, Esken retained £38.8m of non-core assets held for sale.
