Billionaire investor Sir Tom Hunter reaffirms faith in THG

Billionaire investor Sir Tom Hunter has reaffirmed his commitment to THG, saying that Matthew Moulding’s beauty-to-nutrition group has been “a real success story”, according to The Times.

Hunter has had a business relationship with Moulding since 2009 and has been a vocal supporter THG.

The newspaper said that since listing in London over two years ago, the group’s market value has dropped from £5 billion to less than £680 million.

Hunter told The Times: “Matt we have backed since 2009 — and we are still delighted to back him today.

"There are not many people who start from nothing and grow probably one of the world’s biggest online beauty platforms. It is a real success story, but it has not been a stock market success story.

“We have had a lot of money out of THG but are still invested, happy and privileged to still be investors in Matt’s company. We remain committed to THG and would reiterate our absolute faith in Matt Moulding and his team.”

THG, formally known as The Hut Group, was founded in 2004. Today, the group owns businesses including Lookfantastic, Glossybox, Cult Beauty, Illamasqua and ESPA.

In October 2022, THG reported a 2.1% increase in revenue to £518.6 million for the third quarter ending 30 September 2022.

This came after Japanese investment giant Softbank offloaded its stake in THG to the group's founder and Qatar Investment Authority, which represented its entire shareholding in THG.

In July 2022, THG terminated its link-up with Softbank, citing "global macroeconomic conditions". This followed a 90% plunge in the value of the THG's shares, after concerns over the value of the business and criticism of the group’s corporate governance.