Tycoon's verdict

Hunter stands by investment in troubled THG

Sir Tom Hunter

Sir Tom Hunter: ‘significant stake’

Sir Tom Hunter said he stood by his decision to back the THG despite the e-commerce company’s collapse in value.

The entrepreneur said he had taken £100m out of the business and he continues to hold a “significant stake”.

Sir Tom took a 3.75% pre-IPO stake in the company, formerly The Hut Group, when it was priced at 500p a share.

But the shares nosedived following a botched capital markets presentation in October when £1.85 billion was wiped from its value in one day to leave it worth £3.48bn.

Shares in the Manchester-based business were trading yesterday at 214.5p.

Sir Tom sold down his holding before investors became alarmed over suggestions that Softbank may not take up an option to invest further in the business.

A spokesman for the Scottish entrepreneur said: “THG plc has been a stand out investment for us and since we first invested years back we have taken out over £100m.  

“We continue to hold a significant stake and believe Matt Moulding [founder] is one of the best entrepreneurial disrupters of his generation and are proud to be investors with him.”

Annual accounts for Sir Tom’s West Coast Capital investment vehicle, show listed investments, which had a market value of £74.9m as at 31 March 2021, had a market value of £24.2m at the date of signing the latest financial statements (21 December).

Speaking to Daily Business, Sir Tom said the fall in the value of the company “would only have affected me if I had sold the shares.”

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