THG Holdings launches new sustainable platform

The business had been a centre of interest ahead of its IPO in September

THG Holdings plc announced the launch of a new sustainable platform as well as three new partnerships for its Ingenuity platform.

The online retailer has unveiled THG Eco, planned to be “the driving force” behind the wider group’s plan to reduce its environmental impact and implement new sustainability practices.

It did not specify what THG Eco involves.

The firm added that the recent CarbonNeutral certification represents “a significant first step” in its commitment to reducing its impact, having balanced out emissions by supporting low carbon sustainable development projects which reduce the equivalent amount of CO2.

Meanwhile, its Ingenuity third-party platform announced three new digital partnerships to deliver bespoke direct-to-consumer solutions.

The business had been a centre of interest ahead of The Hut Group’s IPO in September, being similar to Ocado’s success story of partnering with other supermarkets.

Ingenuity signed up luxury swimwear brand Orlebar Brown, part of the Chanel group, to expand its presence in Japan, China and South Korea.

Similarly, it partnered with Australian wellness and natural beauty business BWX to target markets in Europe, Asia?Pacific and North America.

Finally, British brand Lulu Guinness, known for its retro-flavoured accessories and red lip logo, will use the platform to boost its presence in Japan.

Liberum forecast Ingenuity Commerce revenue to more than double in 2021 to £37mln from £18mln in 2020 on the back of such new business wins, “although the impact on outer year revenues could be higher depending on the success of the businesses”.

The business wins highlight the strength of THG’s Ingenuity Commerce platform as a provider of e-commerce in a box services to consumer brands looking to expand their online presence quickly, without the need to invest in infrastructure and/or suffer any growth pains, analysts noted.

The Ingenuity Commerce revenue sharing business model implies that while the company charges a low fee up-front to set-up the platforms, the wins could potentially translate into much higher revenue in later years if these partnerships succeed, they noted.

According to The Guardian, chief executive Matthew Moulding is set to receive one of the largest payouts in the history of UK companies after the recent share price rally.

The founder should cash in at least £830mln in shares, which could rise further if the market capitalisation touches £7.25bn. His base salary will also increase to £750,000 a year from £318,000 in 2019.