THG PLC (LSE:THG) has sold two of its non-core businesses for a total of roughly £4mln, including cycling equipment provider ProBikeKit to Mike Ashley’s Frasers Group PLC (LSE:FRAS).
The owner of the Hut Group also offloaded its OnDemand personalisation and customisation arm to management, part of a review it had flagged in January.
OnDemand, where the management buy-out was funded by advisory and investment firm Gordon Brothers, will continue to be a client of THG Ingenuity’s technology, operational and digital services.
Last year, OnDemand and other ‘discontinued categories’ contributed to an underlying EBITDA loss of £14.6mln, with sales at OnDemand down 17%.
Group free cashflow remained negative for the 12 months to 30 June 2023 but was “ahead of expectations”, THG said, at roughly £40mln, even including disposal proceeds from the sale of non-core freehold property assets.
Boss Matthew Moulding called OnDemand an incubator division, and said over the years it has “cultivated our talent, technology and trading strategies”.
He added: “We will remain close partners with both the OnDemand management team and Frasers Group through continued Ingenuity services.”
THG bought ProBikeKit from Encore Capital in 2013.