Hut Group wins new business as founder gets £830m

Matthew Moulding, The Hut Group founder and CEO

Manchester-based consumer brand and e-commerce giant The Hut Group (THG) has announced a series of new client wins with BWX Ltd, Lulu Guinness and Orlebar Brown.

The news of the new clients came as it emerged that THG founder Matthew Moulding is set to receive one of the biggest payouts ever in UK corporate history.

Moulding could receive roughly £830 million in shares after THG’s stock price hit targets set at its stock market flotation in September.

THG priced its initial public offering (IPO) of stock at £5 per share with a stock market capitalisation of £5.4 billion on admission to the London Stock Exchange.

In the two months since the IPO, THG’s share price has risen above £7 before settling around £6.48 on Monday to give the firm a stock market value of around £6.3 billion.

Luke Hildyard, director of the High Pay Centre, said: “This looks like a gross overpayment for short-term share price increases and highlights the litany of corporate governance abuses associated with The Hut Group.

“While the company has been celebrated as a British tech success story, these arrangements are far beyond what anybody could consider a fair and proportionate reward for success.”

A spokesman for The Hut Group said: “We are delighted with the market reaction to our IPO and that all of our shareholders are benefiting from the strong performance of the business. 

“The equity scheme was put in place when THG was a private company and we are delighted that over 200 THG staff have already shared in the scheme, worth around £200m today.”

In the new client news, THG said it will partner with BWX Ltd, Lulu Guinness and Orlebar Brown.

THG said its Ingenuity business clinched three new digital partnerships with:

  • Luxury swimwear brand Orlebar Brown, part of the Chanel Group, which will expand its presence in Japan, China and South Korea, as part of an end-to-end D2C partnership. 
  • Australian wellness and natural beauty business, BWX, which is partnering with THG Ingenuity to drive its D2C strategies for its brand portfolio, ‐ which includes Sukin, Andalou Naturals, and Mineral Fusion – to expand into Europe, Asia‐Pacific and North America. The ASX‐listed company will initially target five priority markets and increase to 14 markets in financial year 2022.
  • Iconic British brand Lulu Guinness, which is growing its D2C audience in Japan via its partnership with THG Ingenuity.

The group also announced the launch of THG Eco, which it said “will be the driving force behind the group’s bold sustainability action plan.”

Moulding said: “I am delighted to announce meaningful progress on THG’s sustainability strategy, in conjunction with our new THG Ingenuity partnerships.

“Each of our brand partners offers something unique to their audiences, yet they are united in recognising the power of THG Ingenuity and the potential gains our platform can bring to their growth models. 

“With regards to THG Eco, for all businesses, the threat of climate change means that reducing the environmental impact of their operations is no longer a choice — it has become a pre-requisite.

“At THG we are very aware of the challenge we are all faced with, which is why the launch of THG Eco is so important and will ensure we’re fulfilling our responsibilities to the planet and to the people around us as we continue to pursue our ambitious growth plans.” 

About the Author

Mark McSherry
Dalriada Media LLC sites are edited by veteran news journalist Mark McSherry, a former staff editor and reporter with Reuters, Bloomberg and major newspapers including the South China Morning Post, London's Sunday Times and The Scotsman. McSherry's journalism has also appeared in The Washington Post, The Guardian, The Independent, The New York Times, London's Evening Standard and Forbes. McSherry is also a professor of journalism and communication arts in universities and colleges in New York City. Scottish-born McSherry has an MBA from the University of Edinburgh and a Certificate in Global Affairs from New York University.