THG founder takes 3.2% Kelso Group stake
While holding a modest stake in THG, Kelso gained recognition for consistently issuing critical statements to investors, claiming that the company is undervalued and advocating for its division
THG founder Matthew Moulding has taken a 3.2% stake in Kelso Group, the shareholder that has been critical of his business leadership style.
Moulding is said to have made an investment of around £300,000.
Kelso was launched in 2022 with the backing of a number of high net worth individuals with the idea of tracking and investing in undervalued listed businesses. In January 2023 it successfully raised £3m through contributions from approximately 20 UK entrepreneurs.
Since acquiring a small stake in THG, Kelso has been a thorn in Mouldings side after it released a number of statements to fellow shareholders claiming the business is undervalued and would garner much better value if its division were to be separated.
At the start of the year, Kelso increased its holdings in THG and called upon the board to take further measures to enhance the business’s value, specifically focusing on elevating the profile of its shares.
In addition, following a visit to two THG sites Kelso published a four-point plan to increase value in THG as well as proposing a separation of MyProtein, its nutrition brand.
Earlier this year, THG maintained its full-year revenue and EBITDA guidance after welcoming its best quarterly revenue performance in the last year.
Q3 revenues were still down by 4.4% against the prior year, but its performance improved each month in the quarter. The group also returned to positive constant currency revenue growth of 3.2% in September, driven by a strong performance across its Beauty division.
