THG has continued to deliver very strong trading in FY’21 with sales up 58% in 1Q’21 (+41% in FY’20), with exceptionally strong growth across all areas of the business. FY’20 results are as expected but cash flow conversion is stronger than we expected at 117% leaving c. £285m of cash on B/S. Looking ahead, FY’21 guidance has been prudently maintained at 30-35% sales growth despite the strong start in 1Q – which leaves scope for upgrades and positive momentum. We applaud the increase in capex and M&A guidance as a signal of intent to truly bed down their competitive advantages and leverage their internal capabilities. On this, Ingenuity is delivering an accelerating rate of growth further driving our optimism. We increase our TP to 1,000p to reflect the strong trading and confidence in the company’s ability to capture the future growth opportunities for its own brands and third party brands.