THG inks new 10-year strategic partnership with Maximo Group

Technology platform operator THG has struck a new 10-year strategic partnership with beauty e-commerce retailer Maximo Group.

THG said on Thursday that the partnership will initially focus on re-platforming Maximo's All Beauty and Fragrance Direct websites to its Ingenuity platform, and highlighted that THG Ingenuity will also become Maximo's "key UK operational partner", providing warehouse and fulfilment services from the second quarter of 2023.

The London-listed group stated the partnership was expected to add in excess of £150.0m gross merchandise value to the Ingenuity platform per annum, with the ambition to re-platform the site by the end of Q2.

Analysts at Liberum said: "This is a positive sign which shows that the shift in Ingenuity strategy to focus on bigger clients is starting to bear fruits.

"We believe larger scale client wins are key to a re-rating as it allows the group to leverage the excess capacity and meaningfully improve free cash flow and returns on capital. We remain 'hold' for now but further Ingenuity wins, and more clarity on the economics of the contracts with bigger enterprise clients, would make us more positive."

THG will publish its results for the year ended 31 December on 18 April.

As of 0915 BST, THG shares were up 6.15% at 67.62p.

Reporting by Iain Gilbert at Sharecast.com