The Hut Group (THG) has announced increasing revenues across its different divisions as company founder Matt Moulding seeks to win back investors’ trust.
For Q3 ending September 30 this year, THG reported a 38 per cent increase in group revenues to £507.8 million after strong performances from its health and beauty and tech divisions.
THG Ingenuity, the company’s tech arm, also saw a 44.1 per cent increase to £51.1 million.
The group’s full year revenue and EBITDA margins guidance remain unchanged, and the company said it expects to “trade comfortably ahead of IPO expectations” set out at the float in September, despite wavering confidence in the eyes of investors, which saw THG lose 25 per cent of its value in two weeks earlier this month.
“We have delivered a strong trading performance in Q3 and enter our peak trading period with confidence,” Moulding said.
“I would like to thank all of our employees given how much they have achieved in the 12 months since IPO. Our talented workforce has grown considerably and as well as significantly outperforming the trading guidance provided at IPO, they have been tirelessly expanding the business model across all divisions.”
THG’s share price went into free fall at the beginning of the month after revealing its plans to separate the technology arm from its beauty and nutrition division.
THG’s share price has been in free fall over the last few weeks since revealing its half year results and announced plans to separate its technology division from its beauty and nutrition arm.
The situation worsened when Moulding lashed out at short sellers at a botched capital markets day, which prompted concerns that the company’s primary investor Softbank was losing interest in the ecommerce platform.
In a bid to quell concerns, Softbank subsidiary SB Management managing director Andreas Hansson was joining THG’s non-executive board of directors.
Moulding also announced last week that he was giving up his “golden share” in a bid to regain the trust of investors.
Moulding’s golden share meant that the group was unable to apply for a premium listing and therefore not listed in the FTSE.