Shares in the beauty owner have tumbled further, despite reporting soaring revenues for Q3
Shares in Lookfantastic owner The Hut Group (THG) have fallen another 20% on top of the downturn seen earlier this month.
Despite the company reporting year-on-year growth of 38% in its Q3 trading announcement, the Lookfantastic owner has been unable to retain shareholders in recent weeks as the business makes various calculated moves.
Following THG’s decision to list its THG Beauty arm as a separate business on the London Stock Exchange, and a capital markets meeting earlier in the month, THG managed to shave off 35% of its market value, worth around £1.85bn.
Shareholders are said to have expressed concern about THG’s structure and prospects for its THG Ingenuity, the group’s technology platform and e-commerce enabler.
Meanwhile, last week, Matthew Moulding, the Manchester-based firm’s founder and Chief Executive, sold off his ‘golden share’ in the company, saying that the decision would promote ‘good corporate governance’.
The move will also allow the business to be included in the London FTSE indices, and is said to have blocked a takeover of the business.
For the three months ended 30 September, THG reported that business was booming, and that beauty was leading the charge.
THG Beauty saw 57% year-on-year growth compared to the same three months in 2020.
THG Ingenuity, where the THG is placing a lot of its focus, also reported a 44% hike in growth on the previous year from £35m to £41m.
“We have delivered a strong trading performance in Q3 and enter our peak trading period with confidence,” said Moulding.
“I would like to thank all of our employees given how much they have achieved in the 12 months since IPO.
“Our talented workforce has grown considerably and as well as significantly outperforming the trading guidance provided at IPO, they have been tirelessly expanding the business model across all divisions.
“The appointment of two independent non-executive directors and four special advisors since IPO has been hugely beneficial to the Board, and we have real optimism for 2022 with the step-up to a Premium listing on the Main Market of the London Stock Exchange following the appointment of an independent Chair.”