Manchester ecommerce and tech services supplier THG has fallen out of the FTSE 250 index.
FTSE Russell, the global index provider that serves the London Stock Exchange updates the companies listed on its two big FTSE 100 and FTSE 250 indexes quarterly, based on their valuation.
THG’s shares witnessed a healthy 16 per cent boost over the course of Monday and Tuesday, but the spike wasn’t enough to see the online retailer retain its spot in the FTSE 250 list with the release of the latest update.
The listings confirmed that THG would be demoted from the list along with Mobico Group; Bellevue Healthcare Trust and Ferrexpo.
One of the companies to take their place is Wickes Group, alongside Ashoka India Equity Investment Trust, Gamma Communications and Pantheon Infrastructure.
To be fair, this is hardly the end of an era for THG – the Manchester tech guru was only put on the list in March. Nonetheless it highlights a dramatic drop in value for the business, which was valued at £5.4bn when it floated in 2021. Current share prices sees that valuation fall to around £353m.
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THG demerged its hi-tech Ingenuity arm earlier this year, explaining a large part of the drop in value. The spin-off raised almost £100m and Ingenuity was sold to a private entity controlled by THG founder Matthew Moulding.
Nonetheless, change has very much been afoot at the Manchester tech darling of late. Moulding, said in May that the group has saved over £200m through job cuts and “doubling down” on AI and robotics over the last three years, and that the company has reduced headcount from around 10,200 to 6,300 – around a 40% drop – by the end of 2024.
In the update released that month, Moulding admitted that he admitted that to say 2024 was a year of change, was “a hideous understatement.” He added that a spike in commodoties prices had reduced THG’s margins by around £50m, but noted that despite the layoffs it had reinvested some of the savings in staff, with salaries rising 40% to an average of £51k.
The FTSE 100 of the UK’s highest value companies remained unchanged in the latest update.
