THG sells loss-making OnDemand division

THG has sold its loss-making incubator division OnDemand as it continues to "simplify and streamline" its core operations.

The deal sees OnDemand sold to its existing management team, funded by advisory and investment firm Gordon Brothers.

Earlier this year, the group began a strategic review of loss-making categories and territories within the THG OnDemand division.

The move completes the group’s sale of non-core assets, having sold ProBikeKit to Fraser Group in the second quarter of 2023.

The combined consideration payable through both transactions was £4 million, with both discontinued categories contributing to an EBITDA loss of £14.6 million in FY22.

The financial impact has also been incorporated into existing market guidance, with discontinued revenues non-recurring after the third quarter

Matthew Moulding, CEO of THG, said: “Through the years, our incubator division OnDemand has cultivated our talent, technology and trading strategies.

"I am delighted to see management and Gordon Brothers continuing the fantastic work of the OnDemand team, and I have no doubt the ProBikeKit business will continue to thrive under Frasers Group.

"We will remain partners with both the OnDemand management team and Frasers Group through continued Ingenuity services.”

The decision will allow THG to further focus on its "highly profitable" divisions in Nutrition, Beauty, and Technology.