LONDON — British e-commerce company THGAccording to the company, it has not identified any “notifiable reasons” behind Tuesday’s plunge of 35% in its share price.

The Softbank-backed firmLate afternoon trading saw a sudden drop in’s stock, marking its worst single day performance since it listed on the London Stock Exchange last Sept.

This move followed the company’s capital markets day. It was intended to reassure analysts and investors about THG’s ability to turn things around. Shares are down by 65% this year.

Matt Moulding was attempting to calm fears and provide an explanation of the Ingenuity sales platform. However, analysts weren’t impressed by his speech.

THG stated Wednesday that no material new information had been disclosed during the event in a market statement.

“Since its IPO in September 2020, THG has consistently delivered ahead of its targets set at the time of IPO and recently reported a strong first half performance across all divisions, with Group revenue of £958.8 million ($1.31 billion), +44.7% year-on-year,” the company said.

“The Group also has a very strong liquidity position as it enters its peak trading season, with available cash as at 30 September 2021 of £700.0 million across long dated 3-5 year facilities.”

According to Russ Mould of AJ Bell, an investment director, THG’s capital markets day is meant to aid investors and analysts to better understand certain aspects a business.

Mould explained that “it seems like attendees didn’t get the level information they desired, so messages were quickly relayed back to Headquarters to dump the stock.”

“After joining the stock market in a great deal of hype, the market seems now to believe that THG was overvalued. The market also believes that dissolving the business will raise more questions than it answers.

THG (formerly The Hut Group) sells vitamins, beauty, and nutrition products. It also licenses its technology. One of the most significant technology floats in 2020 was its 500 pence share IPO.

Since announcing plans in September to spin off its beauty business in favor of focusing on THG Ingenuity — an e-commerce platform handling web sales and logistics for companies to sell products directly to consumers — the group’s share price has cratered.

SB Management is a Japanese technology giant. SoftBankIn May,, announced that it was investing $1.6 billion in Ingenuity to give it a 19.9% share and also take a $730m stake in THG.

The ‘conundrum of investors’

THG’s shares began to rebound Wednesday morning, but then dropped more than 10 percent. They were still down 4.6% at the close of the day. Mould stated that Tuesday’s fall in valuation presents an “investor conundrum.”

He stated that “on the one hand, sentiment towards THG stock is extremely weak and it is not worth going against the current if market decides that THG is a dud.”

On the contrary, investors now have the option to purchase shares of a company at a cost that is far lower than the original source.

THG Ingenuity was initially met with great excitement by key clients such as Nestle and Unilever, who gave it considerable credibility to investors.

Mould stated that many product makers now desire a direct to-consumer service. This means the potential for growth is strong.

SoftBank’s buy option values the Ingenuity division at £4.6 billion at current exchange rates, but at Wednesday morning’s share price, the entire group was valued at around £3.15 billion, Mould highlighted.

Mould stated that this would allow investors to buy beauty and nutrition businesses while also acquiring tech and logistic offerings. But, it is not clear what the businesses would look like as standalone entities in terms cost base, capital expenditure, and cash flow.

The financial collapse of THG has led to criticisms from the group. He said that the shares will remain under pressure until it provides more information. “It’s extremely difficult to correctly value this company without all of the relevant information.”