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Mike Ashley’s Frasers Group has upped its stake in THG to 4.8% as it continues investing in a number of UK retailers.
The group now holds 63,156,741 voting rights in the company.
The news comes after THG received a £10m strategic investment from Frasers Group to fund the demerger of its Ingenuity arm, “further underscoring their commitment to its multi-year strategic partnership with THG”.
According to THG, Ingenuity’s demerger will simplify THG’s business model, leading to an improved balance sheet, capex and cashflow profile. Following the demerger, the group would consist of THG Beauty and THG Nutrition.
In June, last year, the two groups agreed a multi-year partnership, which included Frasers acquiring THG’s luxury brands business including Coggles.
Alongside this, THG integrated the Frasers Plus credit offer into its Ingenuity platform, marking Frasers Plus first partnership with an external partner.
THG recently reported a decline in Q4 sales across some divisions, but remains on track to meet full-year expectations having officially completed the demerger of Ingenuity.
For the period ended 31 December 2024, THG experienced a 2.6% fall in revenues to £552.4m.
However, the group’s beauty division – which includes Look Fantastic and Cult Beauty – experienced a 4.6% rise in revenues to £1.1bn.
As a result, THG’s full-year performance for FY24 was in line with expectations, with continuing revenues rising 1.1% to £1.9bn on a constant currency basis.
