THG rejects various takeover offers, warns of broadly flat FY22 profit

The Hut Group said Thursday it has turned down a number of buyout approaches as the company reported full-year profit and revenue growth.

“I can confirm that the board has received indicative proposals from numerous parties in recent weeks,” founder and CEO Matthew Moulding told investors.

But he said the board concluded that “each and every proposal to date has been unacceptable, failing to reflect the fair value of the group”.

In its preliminary full-year results for the 12 months ending December 31, THG reported revenue of 2.18 billion pounds, an increase of 35 percent from a year ago and up 91 percent compared to two years ago.

The company made an adjusted EBITDA of 161.3 million pounds, up from 150.8 million pounds a year earlier, while it narrowed its operating loss to 137.5 million pounds from 527.3 million pounds.

For the first quarter ending March 31, the company posted revenue of 520.2 million pounds, an increase of 16 percent from a year ago and up 84 percent compared to two years ago.

Cost inflation to impact FY22 profit

Despite the growth, THG also warned Thursday that it expects cost inflation to impact its full-year profit.

The company said it expects FY22 adjusted EBITDA to be broadly in line with the 161 million pounds it posted for FY 2021.

This is below analysts’ estimates of 206.1 million pounds, according to data compiled by the group.

However, the company did reiterate its full-year revenue target.

It comes amid a difficult period for THG, which has seen its share price plummet 88 percent in the past year over concerns about its corporate governance.

In March, the company hired former ITV CEO Charles Allen as its new chair after founder and CEO Moulding said he’d no longer serve as chair in a movie to reassure investors.