THG is to demerge its technology platform, Ingenuity, as it seeks to maximise shareholder value.
The firm said it was reviewing potential structures to carry out the demerger, although it had not yet finalised a timescale for the move. Following the demerger, the group would consist of its beauty and nutrition arms.
The move comes as THG saw its profits nudge up 1.6% for its half year ended 30 June. However, sales were down 1.7% for the period.
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Sales in its beauty division jumped 5.7% to £531m and adjusted EBITDA hit £32.6m, while Ingenuity sales surged 14.1% to £80.2m and adjusted EBITDA hit £11m, which helped to offset “transitory headwinds” in its nutrition business after its rebrand.
Looking ahead, the online group expects to return to sales growth in its third quarter, as it sees improved momentum in THG Nutrition.
In June, THG struck a new multi-year partnership with Frasers Group, which saw the online group integrate the Frasers Plus credit offer into its Ingenuity platform.
Meanwhile, the Mike Ashley-controlled business snapped up its luxury brands business, including Coggles.
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