Moulding gives up golden share as THG beefs up board and issues upbeat trading note

THG claims a strong second quarter should propel the ecommerce giant to profitability and has made scraped founder Matthew Moulding’s golden controlling share and appointed a new independent director to replace a long staidng ally and colleague.

On the numbers, adjusted EBITDA will be in the range of £44m to £47m (H1 2022: £32.3m) is expected. 

An easing in commodity prices has given THG Nutrition a lift and a strategic decision to hold off on price increases has kept sales strong.

The update also stated that online retail platform  THG Beauty expects further sales momentum in the second half of the year, supported by beauty manufacturing as the temporary industry-wide de-stocking comes to an end.

Its ecommerce engine THG Ingenuity “remains on track” to add £1bn incremental gross merchandise value (GMV) to the platform across Technology, Digital and Operational services during the whole of the financial year of 2023. 

As well as serving THG’s internal markets, Ingenuity has signed partnerships with BigCommerce, AutoStore, PwC and Elastic Path announced to date, and recently partnered with Commercehub, one of the world’s largest commerce networks.

Matt Moulding

Ahead of the AGM, Moulding has given up his powerful founder’s share.

“Matthew Moulding has today transferred the Special Share held by him and, as a result, all rights of the Special Share have now ceased in accordance with THG’s articles of association. The Special Share will be cancelled by THG.”

As advised by activist investor Kelso Group, THG is moving to a premium listing with timing subject to the final outcome of the FCA’s review for reform of the listing regime.

In a separate announcement today, the Board has also made changes to its composition with the addition of Helen Jones as independent Non-Executive Director, in addition to long standing board member Iain McDonald stepping down from the Remuneration Committee to focus on his Sustainability and Nomination Committee commitments.

Helen Jones currently serves as the Chair of the Remuneration Committee at Premier Foods plc, Virgin Wines plc and Fuller, Smith and Turner plc. She is a Member of the Audit Committee at both Virgin Wines plc and Fuller, Smith and Turner plc, also serving as a Member of the Nominations Committee. Additionally, Helen acts as the Workforce Engagement Non-Executive Director for both Premier Foods plc and Fuller, Smith and Turner plc.

In addition, she’s senior independent director of Halfords and a member of the Audit, Nomination and Remuneration Committees.

In 2021, she stepped down as Vice Chair of the Ben & Jerry’s Independent Board of Directors USA, a role she undertook following an extensive career leading the expansion of the brand in Europe. 

THG’s shares have traded at a huge discount to its 2020 float price of £5 a share and have traded in a range of between 68p and 74p.

Moulding’s spiky relationship with the City, the media and shareholders has become a living soap opera to many and these changes, coupled with the appointment of former ITV boss Charles Allen as chairman are all stabilising moves.

The THG announcement of Jones’s appointment, like that of marketing heavyweight Sue Farr, who joined the board earlier this year is a clear signal to the market that Allen is building a credible and heavyweight board in City circles.

Charles Allen, Lord Allen of Kensington CBE, Independent Chair, commented: “She brings with her a successful career across the FMCG industry, with a notable reputation for delivering results and leadership in cultural change programmes. Moreover, demonstrable skills as an experienced committee Chair and Senior Independent Director of listed and FTSE companies.

“This appointment reinforces the Board’s commitment to improve its corporate governance and continually enhance its composition.

“I, and the rest of the Board, look forward to benefitting from Helen’s invaluable experience from both executive and non-executive perspectives.”

Helen Jones said: “THG boasts a great customer proposition and a strong pedigree of scaling brands internationally. The Group is on an exciting journey, and I am pleased to become a part of that alongside an experienced Board of Directors.”