THG to demerge Ingenuity as it announces plans for £75m fundraise
THG has confirmed that it will proceed with the demerger of Its Ingenuity division as it announced plans for a £75 million fundraising initiative.
In a statement, THG said separating out the technology platform will facilitate the simplification of THG’s business model as a cash generative global consumer beauty and nutrition group.
THG said its chief executive Matthew Moulding has indicated his intention to invest £10 million in the equity raise. Additional indications have been received from long-term shareholders Sofina, Mark Evans, Sir Terry Leahy, West Coast Capital and Brian Kennedy.
In a separate announcement, THG said its total group revenues declined by 5.2% to £442.8 million in its third quarter ending 30 September. This followed growth in its beauty and Ingenuity businesses being offset by a weaker performance in nutrition.
Commenting on the quarter’s performance, Moulding said: “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.
“The short-term disruption from the major rebrand of Myprotein is now behind us, and we were pleased that in September Nutrition delivered its best sales performance since January.”
