THG boss Moulding reveals he spent £797,000 on private security
THE retail tycoon Matthew Moulding has revealed that he spent £797,000 on private security after discussions with tax authorities.
In its annual report, Mr Moulding’s company THG revealed that it had spent £364,000 on his security in 2020 and £433,000 last year.
The online health and beauty company initially thought that the services were tax deductible – meaning they would not have to be disclosed – but said it had concluded that this was not the case following a review carried out alongside HMRC.
THG said that before it became a public company and in line with the current pay policy, it has provided “private security cover to Matthew Moulding and his family to allow him to carry out his duties as chief executive”.
The cost of the entrepreneur’s private security has been covered by Mr Moulding since January this year. It will not be included in future annual reports. THG declined to comment.
Mr Moulding and John Gallemore, who co-founded THG in 2004, were entitled to salaries of £750,000 and £450,000 respectively in 2021. They gave most of their wages to charity and chose not to receive any bonuses during the year.
The company said it is seeking to introduce a new bonus scheme for Mr Gallemore, who is chief financial officer, which could pay out up to three times his salary in exceptional circumstances.
It added: “Matthew Moulding will not participate in any future long-term incentives given his material shareholding in the business.”
Mr Moulding is THG’S largest shareholder with a 15pc stake in the business.
Last month, the company revealed it had been approached by bidders about a potential takeover following a share price slump.
It owns websites such as Lookfantastic and Myprotein and it is seeking to grow its IT platform Ingenuity, which provides software for other retailers.
THG was touted as a major new player in British tech when it joined the stock market in September 2020, but shares have since plunged more than 80pc amid concerns over Ingenuity.
Mr Moulding has previously said that the float was a mistake and sought to blame short-sellers for the poor performance of THG’S shares.
He told analysts last month that he could go into little detail about the takeover offers. Insiders said at the time that THG chose to disclose the takeover approaches “to be cleansed of any rumours” as they embark on an investor roadshow.
THG started life in 2004 as an online retailer of CDS and DVDS. It posted record annual sales of £2.2bn, up by more than a third year-on-year.
It recently said that it was aware of the rising cost pressures and the “significant impact of short-term cost inflation on both global consumers and supply chains alike”, but vowed to continue to “shield customers” by keeping prices as low as possible.