What Sue Farr’s appointment to THG board means
Advertising and marketing veteran Sue Farr is to join the board of THG, the Manchester-based ecommerce giant.
A former director of marketing and communications director of the BBC and a former chairwoman of both The Marketing Society and the Marketing Group of Great Britain, she joins the board during a tense period of scrutiny and a possible firm bid by American private equity giant Apollo.
Last week maverick chief executive and founder Matthew Moulding took a swipe at the “select few within the world of hedge funds, media and bank analysts” to talk down UK listed companies, including THG. He also shared a video featuring clips from the film Wolf of Wall Street to make his point.
The purpose of “the game” is simple, he alleged, “to bet that a share price will fall, and make sure you win the bet by doing everything possible to discredit the company.”
Yet Moulding’s battle of wills with the City wasn’t helped by hard facts. As reported on TheBusinessDesk.com last week, THG reported disappointing final year results, revealing growing losses of £495.6m, impacted by the non-cash impairment of £275.4m, in addition to certain non-recurring costs which the company claim will continue to reduce.
THG’s shares have traded at a huge discount to its 2020 float price of £5 a share and closed on Friday at 89.2p, valuing the Manchester-based business at £1.16bn.
Moulding locked horns with analysts and investors as he held on to a golden share and assumed the roles of chair and chief executive. The appointment of former ITV boss Charles Allen as chairman was a move to address that issue, as is the appointment of Farr.
The THG announcement of Farr’s appointment majored on her board experience at stock market listed companies, a clear signal to the market that Allen is building a credible and heavyweight board in City circles.
It said: “Sue is a highly experienced FTSE 100, 250, Small Cap and AIM board member. Following a successful career in media, advertising and marketing, she has spent 16 years in various non-executive director roles.”
Her current non-executive directorships include British American Tobacco plc, North West based motor dealer Lookers plc, Helical plc and Accsys Technologies plc, where she plans to step down after nine years.
Allen also commented on her consumer, media and marketing business experience.
“Building on the progress made over the last 12 months, this appointment is consistent with the Board’s stated intention to continue to improve Corporate Governance and enhance its composition by improving independence and diversity,” he said.
She was also a special adviser to Chime Communications, the corporate PR firm formed by Lord Bell.
Farr said: “I am pleased to be joining THG at such an exciting time for the Group as it continues to grow and to scale globally. THG is a business I have long admired and I look forward to working with Charles and the rest of the Board on this next stage in the Group’s journey.”
Last Friday (21 April) TheBusinessDesk.com reported the latest move by activist investor Kelso which has increased its stake in THG.
The listed cash shell claims THG is undervalued and has urged the board to do much better at investor relations and governance, amongst other recommendations.
