Red flags are raised above Hut Group | Business

The collection of banks that steered The Hut Group towards its stock market listing have raised red flags over the company’s governance only a month after sharing £35 million in fees.

Five of the eight investment banks that advised on London’s biggest flotation since Royal Mail have published research on the company and placed a “buy” rating on it because of the potential for revenue growth. However, all of them note its unconventional governance and the unpredictability of earnings in its technology business in a warning to investors.

The Hut Group, which owns the Lookfantastic and Myprotein online brands, was founded by Matthew Moulding, 48, in 2004. It was floated last month in a £4.5 billion stock market listing.

The company’s valuation has since surged