The Hut Group has insisted it knows of ‘no reason’ for the substantial share price decline it was struck by yesterday, with the online retailer assuring investors of its ‘very strong liquidity’ position.
As the stock’s slide persisted today with another fall of 3 per cent, shareholders were nursing a 60 per cent loss a nrecent peak of 684p in early September.
Hut Group shares plummeted by 35 per cent on Tuesday after a shareholder meeting, wiping £2billion off the firm’s market cap.
CEO Matt Moulding told the Mail yesterday it had ‘not been a great day’
The meeting, which had been intended to reassure investors following a wave of negative commentary and to explain the value of the group’s online retail platform, had the opposite effect.
The share price nosedive began when chief executive Matt Moulding began speaking. Moulding told the Mail yesterday it had ‘not been a great day’ for himself of THG.
The CEO of the Manchester-based clothes, make-up and protein drink seller added that he did not know ‘the full answers’ as to why the share price had taken such a hit, and he intended to discuss with brokers later that day.
Moulding suggested the company had been targeted by ‘short-sellers’ betting against the shares.
He also highlighted an ‘attack on the business ten days ago’ by research firm The Analyst that expressed doubts over Ingenuity as well as THG’s culture and corporate governance.
THG’s share price has suffered since IPO
THG followed up on Moulding’s comments on Wednesday morning by telling investors ‘it knows of no notifiable reason for the material share price movement’.
Stressing the strength of its performance since its September 2020 IPO, THG said it has ‘a very strong liquidity position as it enters its peak trading season’.
The firm is due to report its Q3 trading update on 26 October.