Health & Beauty

THG boss eyes plans to grow capacity to £14bn orders a year

Analysts are reportedly sceptical of the plans and are concerned that the additional capacity would not be met by demand

THG boss Matthew Moulding is reportedly eyeing up plans to increase its capacity in order to handle up to £14bn worth of orders a year, according to the Daily Mail.

The outlet reported that Moulding has told city investors he is looking to invest an additional £200m to open a new automated warehouse in Manchester, with additional plans for sites in New Jersey and Dubai. 

Analysts are reportedly sceptical of the plans and are concerned that the additional capacity would not be met by demand. 

The news comes after THG revealed it had received takeover proposals from numerous parties in recent weeks, but the board said that every proposal has been “unacceptable” and fails to reflect the “fair value” of the group.

The announcement was made as part of the group’s recent trading update, where it revealed it had recorded “record” revenue growth of 38.1% year-on-year from £1.6bn to £2.2bn in the full year ended 31 December 2021 (FY21), driven by organic growth in all divisions and supplemented by the contribution from acquired businesses.

The news also comes following a difficult period for the group which has seen its share price fall by nearly 80% since its £5.4bn listing in 2020.

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