Fresh setback for Moulding as Hut sinks
tHE Hut Group shares crashed towards record lows after yet another disappointing update to the City.
In the latest sell-off since it was listed on the stock market by founder and chief executive Matt Moulding in late 2020, the stock dived 9.6pc, or 17.9p, to 167.7p.
the rout came after Moulding warned that profits for 2021 would be lower than expected. the company, which sells skincare, make-up and supplements and includes brands such as Lookfantastic and Myprotein, is now worth just £2.6bn, having seen its value peak at £9.8bn early last year.
tHG also builds websites for retailers such as Matalan and Homebase through its technology arm Ingenuity.
Moulding blamed ‘adverse’ exchange rates for the hit to profits. It left shares standing just above their all-time low of below 165p. when it listed in september 2020, shares rose from 500p to 800p in weeks.
But it has lost three-quarters of its value in a little over four months, shedding 35pc in a single day in October.
the downturn was sparked by corporate governance concerns and fears its Ingenuity business was overvalued.
AJ Bell investment director Russ Mould said Moulding faces a huge challenge to turn his fortunes around. He said: ‘Under normal circumstances, a business delivering the level of growth seen in THG’S latest update would be applauded by the market. sadly, THG has shot itself in the foot thanks to the way it has behaved as a listed company since joining the stock market.’
THG posted record sales of £2.2bn for 2021, 35pc up on 2020 and almost double 2019. Ingenuity, which was at the heart of questions over THG’S value, had sales of £194m – 41pc up on a year earlier.