THG sales slide as losses widen
Sales slid at digital commerce firm THG and losses widened further as the firm battled weak consumer demand.
Revenue for the first six months of the year fell 9% to £969 million while pre-tax losses jumped 25% to £133 million.
The increased loss was not mentioned in CityAM, now owned by THG, which instead discussed cashflow at the business.
Matthew Moulding, CEO of THG, said: “Inflationary pressures provided significant challenges to consumers and businesses alike over the past 18 months.
“Our strategy of supporting our consumers through 2022, sacrificing margins in the short-term, is bearing fruit.”
FTSE 100 set for opening gains with attention back on housebuiders
London’s FTSE 100 is expected to make modest opening gains, with futures contracts in the main UK stock index pointing to an opening gain of around 30 points.
Attention is back on housebuilders after government rule changes designed to make the planning process easier were defeated in the House of Lords. The proposals led to a sharp rally in the sector when they were first introduced. After a rebound during the previous session, the delay to the changes may influence trade today.
Inflation and interest rates are also back on investors’ radar screens, with an interest rate call due in the euro area from the European Central Bank. The next Bank of England vote on UK rates is not due until next week.
Trading in Arm, the chip designer, will begin in New York today, and will be closely watched in London, the high-tech firm’s former home.
There are also updates due from spread betting firm IG, travel ticket seller Trainline and online retailer THG.
Morning refresh: What you need to know to start the day
Good morning from the City desk of the Evening Standard.
Trading of shares in British chip designer Arm begins today. City eyes will be closely watching stock price moves for the most hotly anticipated tech IPO of the year following the firm’s decision to close its order book early after being oversubscribed by a factor of ten.
Owner SoftBank had been eyeing a valuation of $60-70 billion for it earlier this year, before setting Arm’s IPO price at $47-51 a share last week, giving it a significantly lower market value of $54.5 billion. But it now looks set to price at the top end of that range or higher still.
Here’s a look at what investors are weighing up.
Here’s a summary of our top headlines from yesterday: