THG PLC (LSE:THG), the online retailer better known as The Hut Group, has raised forecasts for its technology platform Ingenuity by a minimum of 20% for next year.
Doubts over the potential for Ingenuity saw THG’s share price crash by 35% two weeks ago after a meeting left institutional investors and analysts confused over its prospects.
In an update today, THG said it was raising its 2022 revenue forecast for Ingenuity by 20%-25% to between £108mln-£122mln.
Other fall-out from that meeting was that THG committed to appointing a non-executive chair and said it would split the roles of founder Matthew Moulding, who is also CEO.
The company today said that process had started and was part of plans to attain a premium listing on the London Stock Exchange.
Softbank, the Japanese tech financier that has heavily backed THG and Ingenuity, will also see its managing director take a seat on the board, presumably to reassure over its commitment to the business, which had been another worry.
On the trading front, things still look rosy with sales in the three months to end-September up by 38% to £508mln and by 94% on a two-year basis.
Year to date in 2021, sales are up 42% to £1.47bn.
Matthew Moulding said: "We have delivered a strong trading performance in Q3 and enter our peak trading period with confidence.
“The recent successful migration of Cult Beauty onto the Ingenuity platform is testament to the resilience of the infrastructure and the expertise of our digital talent. In under 10 weeks we have seamlessly migrated Cult Beauty, whilst delivering significant website and customer user-experience improvements at the same time.”