‘It’s not the despair, it’s the hope that kills you’ is a quote that THG could be excused for uttering tonight.
Hopes that a 16 per cent boost to its share price on Monday and Tuesday would be enough to see the online retailer retain its spot in the FTSE 250 list were finally extinguished with this statement on Wednesday.
It confirmed that THG would be demoted from the list along with Mobico Group; Bellevue Healthcare Trust and Ferrexpo.
One of the companies to take their place is Wickes Group, alongside Ashoka India Equity Investment Trust; Gamma Communications; and Pantheon Infrastructure.
It brings an end to THG’s shortlived stay on the FTSE 250, which only saw them included in March alongside Hiscox and Atalaya Mining Cooper.
The news will see the Manchester-headquartered retailer drop into the Small Cap Index.
All changes from the latest review will be implemented at the close of business on Friday, June 20th and take effect from the start of trading on Monday, June 23rd.
Last week data from FTSE Russell put THG on notice that their falling market cap meant they were in danger of dropping out of the 250 list.
The list is made up of the 101st to 350th mid cap companies listed in the London Stock Exchange and THG’s founder and CEO Matt Moulding had previously hailed the company’s inclusion as an ‘important moment in THG’s evolution’ following the demerger of THG Ingenuity.
On Wednesday THG’s share price dropped to 25.32p, giving it a market cap of £352m.
