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UK ecommerce group THG said it had received several “indicative proposals” for the company in recent weeks, as the once high-flying group warned that rising costs would curb profit growth this year.
Founder and chief executive Matthew Moulding said on Thursday that “the board has received indicative proposals from numerous parties” but “each and every proposal to date has been unacceptable, failing to reflect the fair value of the group ”.
He added that THG “is not currently in receipt of any approaches”.
The company, previously known as The Hut Group, was one of the most celebrated technology IPOs in London when it floated in September 2020. But its shares have since lost four-fifths of their value amid investor concerns about governance and strategy.
THG provided no further details on the indicative proposals alongside its full-year results which showed adjusted earnings before interest, tax, depreciation and amortisation of £161.3mn. According to data compiled by the company, analysts had expected full-year adjusted earnings of £163mn.
For the current year, THG expects adjusted profit to be “broadly in line” with 2021 — a downgrade from analysts’ expectations of £206mn due largely to higher than expected cost inflation. Its forecast for sales growth of 22-25 per cent remains in place.
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