The Hut Group has revealed its intention to float on the London Stock Exchange, with a target valuation of £4.5bn.

The health and beauty group, which owns brands such as Glossybox and Myprotein, said the IPO would help the business capitalise on its “significant potential”.

The Hut Group recorded “strong growth” during the six months to June 30, with sales surging 35.8% year on year to £676m, despite the impact of the coronavirus pandemic. It attributed the growth to “the non-discretionary nature” of its nutrition and beauty categories.

That sales growth came off the back of a strong 2019, when The Hut Group grew revenues 24.5% to £1.1bn.

The group’s planned float could net its founder and chief executive Matt Moulding £700m. Under the terms of a long-term incentive plan reported by Sky News, Moulding would pocket the bonus if the company achieves a market value of £7.25bn by December 2022.

A host of retail veterans including former Tesco chief executive Sir Terry Leahy, ex-Matalan boss Angus Munro, former Debenhams chief executive Terry Green, all of whom are investors in The Hut, are also in line for big payouts from the float.

Moulding founded the group in 2004, initially selling CDs online, but he has since grown the group by snapping up a host of brands such as Lookfantastic, Christophe Robin, ESPA and Illamasqua.

The Hut Group also owns its end-to-end ecommerce tech platform THG Ingenuity and revealed plans to launch its own airline, THG Air, earlier this year.

Reports have long suggested The Hut Group could look to float, but it took its most meaningful step towards that target in July, when it appointed seven banks, including JP Morgan and Barclays, to advise on the IPO. 

Moulding said: “Our intention to float THG on the London Stock Exchange reflects the achievements of the past but also our strong belief in the significant potential for THG in the future. 

“THG has enjoyed strong growth since being founded in 2004, employing more than 7,000 people and establishing a track record of consistent delivery for our customers. 

“The brands we own today give us leading strategic positions in prestige beauty and nutrition, powered by Ingenuity, our differentiated proprietary direct-to-consumer ecommerce solution.”