THG names Charles Allen as chairman
By Iain Gilbert
Date: Tuesday 22 Mar 2022
(Sharecast News) - British retailer The Hut Group has tapped Charles Allen to take over as independent non-executive chairman, with immediate effect.
The Hut Group said on Tuesday that Allen's appointment followed an international search initiated back in October 2021 when the company committed to splitting the dual roles of executive chair and chief executive officer held by founder Matthew Moulding.
The London-listed firm stated Allen, the current chairman of Balfour Beatty and Global, was "a highly experienced chair", with industry expertise across retail, media, technology, gaming, food production, and manufacturing.
Analysts at Liberum noted that following "a raft of other improvements" to the group's corporate governance structures in 2021, the appointment of Allen addressed nearly all the concerns previously raised.
"What we find anomalous with the valuation, is that the fundamentals of the group are better than at the time of the IPO. So the 90% share price decline from its peak is excessive. Trading at 0.4x forward EV/sales and 4.9x forward EV/EBITDA is a distressed valuation which is wholly inappropriate for THG. Surely if this persists then some form of corporate activity is on the horizon," said Libreum.
As of 0920 GMT, THG shares were up 2.47% at 91.15p.
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