Hut Group sinks again after ‘brutal’ two years
SHARES in The Hut Group sank after the online retailer reported another year in the red and said it had cut 3,000 jobs over a ‘brutal’ two years.
The company, now known as THG, lost £252m in 2023 – though this was less than the £549.7m racked up in 2022.
It came after revenues dropped 3.2pc to £1.98bn. and while sales started growing again in the last three months of 2023, shares plunged 11pc, or 7.45p, to 60.4p.
That wiped £100m off the value of the business – and £15m off the value of the near-15pc stake held by founder and chief executive Matt Moulding.
THG is now worth around £800m, having been valued at £5.4bn when it listed at 500p in September 2020.
Moulding, 52, said on Linkedin that it had been ‘brutal’ running THG. ‘It’s felt like an F1 race, but on a track covered with thick fog, torrential rain, crashes, potholes and cheating track marshal.’
after inflation ‘ exploded’ in 2022, THG battled to find savings. ‘Two years on, we have 3,000 fewer staff, with the majority of the reduction due to a huge automation roll-out,’ Moulding said.
Despite the surprise rise in US inflation to 3.5pc wreaking havoc on global markets, the FTSE 100 rose 0.3pc, or 26.42 points, to 7961.21, while the FTSE 250 was up 0.2pc, or 38.40 points, to 19,801.75. Private equity predators are eyeing business consultancy Centaur Media, which owns titles including The Lawyer.
Dutch group Waterland has until May 8 to say whether it wants to make an offer or walk away. The private equity firm invests in UK companies such as the Bournemouth digital agency Sideshow Group. Centaur rocketed 25pc, or 10p, up to 50p.
Ingredients maker Treatt soared 13.4pc, or 54p, to 458.5p after it reported higher profits and stronger growth in China.
The new Direct Line finance chief has been poached from aviva’s UK and Ireland general insurance business. Jane Poole will join the insurer in October and replaces Neil Manser. Shares rose 2.1pc, or 3.8p, to 189.5p.
equipment rental firm Speedy Hire warned its annual results should be at the lower end of forecasts as lower fuel prices and the warmer winter contributed to revenues falling 5pc to £420m in the year to the end of March. It rose 1.6pc, or 0.4p, to 25.75p.
XP Power, which makes equipment to manage the flow of electricity into devices, was on the rise – up 8pc, or 79p, to 1070p – as it pinned its hopes on growing demand for semiconductor tools.
The Singapore company gave an upbeat outlook despite a tough first quarter – revenues fell 17pc to £64.6m while the value of orders plunged 29pc to £43.7m.
Consumer healthcare firm Futura Medical warned there was some uncertainty over its ability to generate revenue and the timing of key milestone payments. Last year it made £3.1m following the launch of a gel to treat erectile dysfunction. But it said it was difficult to predict future sales.
It fell 13.6pc, or 5.8p, to 37p.