THE RETAIL BULLETIN - The home of retail news
Home Page
News Categories
Christmas Ads
Commentary
Department Stores
Electricals & Technology
Entertainment
Fashion
Food & Drink
General Merchandise
Grocery
Health & Beauty
Home & DIY
Interviews
Property
Retail News
Retail Solutions
Shopping Centres, High Streets & Retail Parks
Sports & Leisure
Retail Events
THE Retail Conference 2022
Retail Women In Leadership 2022
Digital Transformation Strategy 2022 Part 2
Omni Channel Futures 2023
Upcoming Retail Events
Past Retail Events
Retail Insights
Retail Solutions
Advertise
About
Contact
Subscribe for free
Terms and Policies
Privacy Policy
THG boss Matt Moulding to ditch golden share in bid to restore City confidence

The Hut Group (THG) founder Mathew Moulding has said he will give up his “golden” share of the company to regain the trust of investors. The… View Article

GENERAL MERCHANDISE

THG boss Matt Moulding to ditch golden share in bid to restore City confidence

The Hut Group (THG) founder Mathew Moulding has said he will give up his “golden” share of the company to regain the trust of investors.

The ecommerce platform hoped that the move would promote “good corporate governance” after the company’s share price dropped 25 per cent of its value in just two weeks.

The uncertainty was sparked by questions surrounding THG’s profitability, share structure and valuation.

The company said that the move will help it apply for a premium listing in London, which it hopes to achieve by 2022.

Currently, Moulding’s golden share means that THG is unable to apply for a premium listing and therefore not listed in the FTSE.

“After the anniversary of our 2020 listing we feel that the time is right to make this next step and apply to the premium segment in 2022, thereby continuing the development of THG as we endeavour to deliver our strategy for the benefit of our shareholders, key stakeholders and employees,” Moulding said.

Initially, Moulding’s controlling share in the company was supposed to give him ultimate control over the Manchester-based company for up to three years after it floated on the LSE in September last year, being valued at £5.4 billion.

The removal of the dual-class share structure will likely appeal to THG investors, whose holdings have dropped in value in the last month.

The news prompted the share price to jump 8 per cent on Monday morning after the announcement, however the shares will still 50 per cent lower than they were last month.

The company’s announcement that it was to separate its tech division, THG Ingenuity, from the beauty and nutrition arm that includes sports nutrition brand MyProtein prompted the share price to more than halve in value.

The lack of detailed around the profitability of THG divisions has prompted analysts to raise concerns about the company’s underlying profit growth.

 

Email this article to a friend

You need to be logged in to use this feature.

Please log in here

Subscribe For Retail News

THE NEXT EVENT

See all upcoming events

LATEST VIDEO

UKG LifeWork ALL: Register your place now to hear more. RETAIL HR 21 Sept LONDON
UKG LifeWork ALL: Register your place now to hear more. RETAIL HR 21 Sept LONDON

Watch video >