Rumors began circulating that Manchester-based The Hut Group (THG) could be contemplating an IPO or a private sale in July when they reportedly hired seven bankers to explore options. Last week, plans were revealed for a £4.5 billion listing on the London Stock Exchange looking to tap into current investor appetite following the pandemic.
In 2019, THG saw revenues jump by 24.5% year-on-year to £1.1 billion, with adjusted earnings before tax and interest of £111.3 million. Growth for the six months to June 30 has accelerated recently as it saw revenues increase by 35.8% to £676 million.
The listing will be one of the first major floats in London since the coronavirus put a halt to the IPO market. THG is looking to raise £920MM from the sale of shares and will free-float 20% of its issued share capital.
Matthew Moulding, Founder, Chief Executive Officer, and Chairman of THG, said: “Our intention to float THG on the London Stock Exchange reflects the achievements of the past but also our strong belief in the significant potential for THG in the future.
“THG has enjoyed strong growth since being founded in 2004, employing more than 7,000 people and establishing a track record of consistent delivery for our customers.
“The brands we own today give us leading strategic positions in prestige beauty and nutrition, powered by Ingenuity, our differentiated proprietary direct-to-consumer e-commerce solution.”
- Group sales up 24% to £1,140MM (2018: £916MM).
- International sales now represent 66% of Group sales.
- Gross profit increased by 22% to £511MM (2018: £417MM).
- EBITDA up 22% to £111MM (2018: £91MM).
- 50% of Group sales coming from own brands.
- Group 3-year sales CAGR of 31% and 3-year EBITDA CAGR of 31%.
- Agreed new financing facilities of £1bn, to drive major investments in Beauty, Nutrition, Technology, and Infrastructure.
- Over 20% of THG’s share capital has been awarded to employees since the Group was founded, demonstrating THG’s commitment to people and staff sharing in the value they help to generate.
- Increased capital investment across Technology & Infrastructure projects, including Manufacturing, Logistics, and Offices—totaling more than £1bn since 2016.
- Growth for the six months to June 30 has accelerated recently as it saw revenues increase by 35.8% to £676 million.
Photo: via The Hut Group