THG PLC (LSE:THG) founder and boss Matthew Moulding has seemingly likened himself and his e-commerce group to Robbie Williams and David Beckham following its bounce-back performance.
Moulding posted a four-minute motivational video on Linkedin in which clips of the turbulence in the careers of Beckham and Williams were merged with shots of the THG boss and the group’s warehouses.
In the video’s post, he wrote: “On a good day, building THG is like a game of Dodge Ball (great film!). On a bad day it’s more like Squid Games for entrepreneurs. Throw in being listed in the UK, and it's like wearing a mermaid suit, with both arms tied behind your back.
“The staff presentation and today’s RNS have been like therapy for me, a real reminder of what THG delivered in another year of chaos.”
Why the good mood?
Shares lifted over 7% after the London-listed company boasted a healthy fourth-quarter trading update, which highlighted a return to revenue growth.
Moulding’s Ingenuity division, which provides brands with digital solutions, also celebrated penning a £175 million deal with Holland & Barrett, working with the wellness retailer as its e-commerce partner for the next three years.
Despite the relative cheer surrounding the division, which has faced criticism over the years, it was still unable to stimulate growth in 2023, with revenues dropping by 11% for the full year and by 6.1% for the fourth quarter.
“This disparity in performance across fascias is leading shareholders to call for THG to demerge the three divisions, which they believe are worth more as separate businesses,” Sophie Mitchell at GlobalData argued.
THG believes prospects will grow in 2024 due to consumer spending improving, commodity inflation decelerating and foreign exchange rates improving – on top of the H&B deal.
Liberum’s top pick
Analysts at Liberum welcomed Tuesday’s trading update and contract win with an award of their own, placing the stock as one of the top picks for 2024.
The UK broker believes margin recovery in the THG Nutrition business will allow it to enact faster revenue growth in the upcoming full-year, with its Beauty division also echoing similar changes.
Additionally, the experts believe the Holland & Barrett win will help the Ingenuity arm springboard into 2024, with more deals believed to be in the pipeline.
Liberum targets a 220p share price for the stock, representing a 205% premium to the current 72p trading price.