Sir Tom Hunter sticks with beleaguered THG after £100m gain

Sir Tom Hunter has signalled his continued backing for one of the UK’s highest-profile entrepreneurs despite a collapse in the share price of his firm in recent months.

The Hut Group (THG), which is behind a number of beauty and e-commerce businesses, has seen its shares fall by two thirds since September after a report raised questions over the valuation of a key part of the business.

Shares in the company had hit almost 800p at one stage earlier this year but now stand at around 225p.

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Cala Homes' Oakbank project is one of a series of housing developments at Winchburgh. Picture: contributed.

Through his West Coast Capital investment vehicle Sir Tom has been a significant long-term investor in the firm, which is headed by Matt Moulding.

Releasing West Coast’s latest accounts, Sir Tom stressed that THG had been a “standout investment for us”. He said: “Since we first invested years back we have taken out over £100 million from there. We continue to hold a significant stake and believe Matt Moulding is one of the best entrepreneurial disrupters of his generation and are proud to be investors with him.”

The latest accounts from the West Coast Capital investment vehicles also showed total equity rose to more than £200 million by the end of March this year following what was described as a “solid year of progress”.

It highlighted investments such as the Winchburgh village, which is under development in West Lothian and where it said “consumer demand is strong”. The accounts also show a further donation of £29.6m to The Hunter Foundation, the philanthropy organisation he runs with wife Marion.

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