THG successfully raised £95.4 million to facilitate the spin-off of its Ingenuity division.
- The fundraising exceeded the initial target of £75 million, showing strong investor confidence.
- Chief Executive Matthew Moulding personally contributed £10 million to the fundraise.
- Frasers Group invested £10 million, strengthening its partnership with THG.
- The funding aims to support Ingenuity as a standalone entity, with additional proceeds for corporate purposes.
THG has raised a substantial £95.4 million in funding to enable the separation of its Ingenuity technology branch into an independent company. This capital injection surpassed their initial goal of £75 million, demonstrating notable confidence from investors.
The fundraising comprised £67.7 million from existing shareholder placements, £22.2 million through subscription agreements, and £5.4 million raised from retail investors. Notably, Chief Executive Matthew Moulding invested £10 million himself, underscoring his commitment to the initiative.
An additional strategic investment of £10 million came from Frasers Group, indicating a deepening partnership between the two firms. This follows a multi-year partnership initiated earlier in June, highlighting alignment in strategic goals.
The funds raised will primarily support Ingenuity’s development as an autonomous entity, with additional proceeds allocated for general corporate purposes. The move is aimed at capitalising on the diverse capabilities of the Ingenuity arm, which has been performing well despite overall group sales declining by 5.2% in a recent quarter.
Despite a 10.5% decline in its Nutrition division, THG reported steady improvements due to a rebranding effort for MyProtein, which helped achieve the best sales performance since January. Offline revenue surged by 17% through increased retailer partnerships during this period.
Chief Executive Matthew Moulding remarked positively on the performance of THG’s Beauty and Ingenuity divisions, noting significant operational improvements over the past two years. He highlighted the importance of sustainability, with THG being recognised among the top 250 companies worldwide for its efforts towards net zero goals.
Preparation for the upcoming peak trading period is well underway, with efficiencies achieved over the past year expected to deliver benefits for Ingenuity clients, aiding in new customer acquisition.
THG’s fundraising success highlights strategic focus on Ingenuity’s growth and investor confidence in its future potential.
