Hut Group outperforms expectations as questions are raised about boss’s income
The Hut Group (THG) had a good Q4 2020, enjoying revenue growth of 51 per cent year-on-year, outperforming previous guidance of 40-45 per cent.
THG, which owns a range of online beauty and nutrition brands like MyProtein and Lookfantastic, delivered Q4 2020 group revenue of £558.7m, versus £370.0m in Q4 2019.
Revenue was boosted by THG’s Dermstore.com acquisition and a surge in online demand for its beauty products during the COVID-19 pandemic, which grew 66 per cent in Q4.
The group added over 3.5m new active customers during Q4 2020 alone, with over 10.7m added during the full year.
The success comes as questions are raised about boss and self-made millionaire Matthew Moulding, and the money he earns from THG rent.
According to The Guardian, as part of THG flotation the company sold off many of its property assets to Moulding, and as a result Moulding rakes in around £19m in rent annually, and is leasing back properties to the firm he founded.
The Guardian said THG has not disclosed what the property portfolio was worth, with the listing document outlining how THG is renting from him 15 warehouses and offices, including giant facilities in Warrington and another near Wrocław in Poland, as well as a string of office blocks in Northwich.
A spokesperson for THG told The Guardian the leases between Moulding and the company were signed at “arm’s length” and that there was “no obligation for THG to renew or always use the Propco on future property projects”.
She added that the arrangements are not unique and “a number of other listed companies have used similar structures where founders/key executives own the freeholds of operating properties”.