THG has successfully raised £95.4m to fund the separation of its technology division, Ingenuity, into a standalone entity, exceeding its initial £75m target. The fundraising involved substantial investments from both new financiers and existing shareholders, highlighting confidence in THG’s strategic direction. Contributions included significant placements, subscriptions, and strategic investments from key stakeholders. The move aligns with THG’s ongoing efforts to streamline its business model and enhance operational efficiencies across its divisions. This financial development comes amidst varying sales performances across THG’s business segments.
In a strategic financial move, THG has raised a total of £95.4 million to facilitate the spin-off of its technology arm, Ingenuity, into a separate company. This fundraising surpassed the original target of £75 million, underscoring strong market confidence and shareholder support. Investment contributions were particularly significant from existing shareholders, who accounted for a £67.7 million placement. Additional funding was secured via a £22.2 million subscription agreement and £5.4 million from retail investors.
THG’s chief executive, Matthew Moulding himself invested £10 million, demonstrating leadership commitment to the new venture. Furthermore, Frasers Group made a strategic investment of £10 million, reflecting the continuity and potential enhancement of their partnership with THG. This financial backing is poised to support the medium-term development of Ingenuity as an independent business entity and is intended to serve general corporate purposes beyond the initial separation.
The completion of this fundraising occurs after a reported 5.2% drop in group sales to £442.8 million over the quarter ending 30 September. The company’s beauty and Ingenuity divisions showed positive performance, counterbalancing a 10.5% decline in the nutrition segment. The nutrition business showed signs of recovery, benefiting from a recent MyProtein rebrand and a significant 17% increase in offline revenue through partnerships with retailers.
Matthew Moulding remarked on the company’s progress: “It was especially pleasing to see another solid quarter of delivery from both our Beauty and Ingenuity businesses, rewarding the significant overhaul of their respective operating models during 2022 and 2023.” He further acknowledged the improvements in the Nutrition division’s sales performance in September, citing it as the best since January. Moreover, THG has made strides in sustainability efforts, being recognised globally for its contribution towards net zero objectives.
The successful fundraising reflects strong investor confidence in THG’s strategic initiatives and future growth potentials.
