The Board at THG, formerly The Hut Group, is expected to face “detailed scrutiny” for the remainder of 2022 and beyond.
Lord Charles Allen, the company’s Chairman, who replaced CEO Matthew Moulding in March, said in the company’s annual report that THG’s Board composition will remain his “prime focus” to ensure a “suitably equipped” leadership team is in place.
He is also expected to enhance and refine THG’s governance infrastructure and appoint an appropriate structure for the business.
“Within the parameters of a robust governance framework and aligned with its growth ambitions, the company [THG] remains committed to enhancing and developing its operations, its business model and its businesses for the benefit of its shareholders, its people and all other stakeholders,” added Lord Allen.
In recent months, the Manchester-based firm has come under scrutiny for its culture.
The founder of Cult Beauty, Alexia Inge, stepped down from the business she has had a hand in for 15 years last month, saying she was “exhausted to the bone”.
“I’m taking a well-earned wellness year to recuperate,” she added.
According to staff at Cult Beauty, the e-tailer’s environment had shifted since THG’s takeover in August 2021 last year.
THG, however, said that Inge had left the company she helped co-found “as planned”, and brushed off any concerns of its workforce.
‘Naturally disappointed’
Moulding, meanwhile, said he was “naturally disappointed” that THG has been unable to convert a strong financial year into shareholder returns.
THG’s group revenues saw a 41% hike from £1.14bn to £1.61bn in 2021.
Gross profit was up almost 43% across THG’s entire business, including Beauty, Nutrition, OnDemand and Ingenuity categories.
Overall, THG’s Beauty portfolio, which counts Lookfantastic, Dr. Perricone and ESPA among its brands, saw a sales increase of 57% compared with 2020.
In spite of his disappointment, Moulding said that his business’ vision has “not changed”.
“THG Beauty and THG Nutrition are focused on becoming the undisputed digital leaders in their categories.
“THG Ingenuity aims to be the leading technology platform for the enterprise market, powering digital transformation for brands globally.”
According to This is Money, Moulding took home just £20,000 in 2021, giving up £730,000 of his pay packet to charity.
A far cry from his 2020 financial takings.
For the year, Moulding picked up a mammoth £830m bonus.