“We don’t think THG needs to raise capital but . . .”

Whose SB Northstar division was last year given a free option to pay $1.6bn for a 19.9 per cent stake in THG's Ingenuity division, but probably won't use it by dint of no longer existing. Barclays guesses at 18 per cent sales growth this year, which is some way below company guidance for 22-25 per cent. The 2022 Ebitda guess of £147mn is 8 per cent below the market consensus but comes with the caveat that Ingenuity still needs to meet the management target, which "Isn't a given". "We don't think THG needs to raise capital but we do think capital preservation is a relevant factor and could impact how fast this business grows in the next couple of years if macro conditions deteriorate further," says Barclays, with understatement we should probably consider admirable. Ingenuity's priced at 7x sales, which is a higher multiple than Shopify, yet Barclays still only reaches 100p per share.

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