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Matthew Moulding, the boss of the online beauty, nutrition and technology services group THG, is to surrender his golden share in the company in an attempt to restore the City’s confidence after a torrid fortnight.

Sky News has learnt that the owner of The Hut Group, which floated just over a year ago, will announce next week that it plans to move its listing to the premium segment of the London Stock Exchange in 2022.

To pave the way for that, THG executive chairman and chief executive Mr Moulding will give up his ‘founder’s share’ – which would prevent a hostile takeover of the company – during the course of next year.

City sources said this weekend that the move would be announced next week, and possibly as early as Monday morning.

It will represent a bid by Mr Moulding, who is THG’s biggest shareholder with a 22% stake, to establish a more conventional corporate governance structure after a calamitous week in which the company lost billions of pounds of value.

The abolition of its dual-class share structure and the prospective shift to a premium LSE listing will be welcomed by institutional investors who saw the value of their holdings tumble this week.

Some fund managers had objected to the extent of Mr Moulding’s control ahead of its float last year, although THG said at the time that the ‘special share’ would be retired after a maximum of 36 months.

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A City ally of the THG supremo said the decision reflected “a willingness to listen to the views of outside shareholders” about the existence of the ‘special share’ structure.

“Matt wants to do the right thing by the investors which came in at the time of the IPO,” the source said.

One investor said on Saturday that Mr Moulding and boardroom colleagues were now also considering recruiting an independent chairman as part of the process of stepping up to the LSE’s premium segment.

The investor added that the corporate governance changes would be viewed as a positive step, but that it was now essential if the company was to restore confidence among its wider shareholder base.

Sky News has also learnt that THG has been in talks in recent days about appointing Andreas Hansson, a senior SoftBank executive, as a non-executive director.

Dr Hansson, a former executive at the SoftBank-owned chip designer ARM Holdings, is chairman of Kahoot, an education technology platform also backed by the Japanese group.

The appointment, which has yet to be finalised, would cement a relationship between THG and the Japanese technology investment behemoth that was unveiled in May.

Under their deal, SoftBank invested $730m in THG’s ordinary shares and took an option – exercisable over a maximum of two years – to buy a 19.9% stake in THG Ingenuity, the division which builds and operates e-commerce sites for third-party clients such as Homebase and Revolution Beauty, for $1.6bn.

That option remains in place, and people close to the situation insisted this weekend that they were confident that it would be exercised.

Appointing a board member to a public company in which it holds a stake would be a rare move for SoftBank, while the agreement of THG to award a board seat to a 6% shareholder underlined the fact that their relationship was “a genuine partnership”, an insider said.

At a capital markets day this week, Mr Moulding talked up the potential of Ingenuity, but immediately saw THG’s shares slump by more than 30% amid scepticism about the lack of granular financial detail provided about the unit.

The scale of the share price fall stunned the company and its longest-standing external shareholders, which include Chrysalis Investments, the highly regarded team which has backed Klarna and Wise, the fintech giants.

THG’s other investors ahead of the IPO included BlackRock, the world’s biggest asset manager, and KKR, the New York-listed private equity investor.

The company, which is based in Manchester, has long been lauded as one of the UK’s biggest tech success stories, although there will now be intense pressure on its management to demonstrate that Ingenuity can become an engine of future earnings growth.

Since taking THG public, its executive chairman has cemented his status as one of Britain’s wealthiest people, landing a share windfall worth more than £800m late last year after hitting a number of financial targets set out in its flotation prospectus.

He already held a stake in the company worth about £1bn.

Earlier this year, Mr Moulding pledged a £100m stake in the company to a new charitable foundation, establishing him as one of Britain’s biggest individual philanthropists.

Nevertheless, THG’s promising debut on the public markets has been followed by a torrid period, with the shares more than halving during the last year.

As well as the proposed Ingenuity spin-off, it recently reiterated a plan to pursue a separate listing for its beauty division.

The company owns beauty sites such as Lookfantastic and Glossybox, and in August said it would pay about £275m to take control of Cult Beauty, a leading independent platform.

THG is also home to an online nutrition business, including MyProtein, which it says is the world’s largest sports nutrition brand.

Mr Moulding founded The Hut Group alongside John Gallemore – now its finance chief – in 2004, and it has since grown into a digital giant employing more than 10,000 people.

Ironically, his decision to surrender his golden share comes just months after a Treasury-sponsored review led by Lord Hill, the former EU commissioner, recommended that founders of fast-growing companies should be able to retain greater control after listing them through dual-class stock.

Deliveroo and Wise are the other main examples of tech companies which have floated using dual-class share structures this year.

THG floated at 500p-a-share, giving the company a market value of £4.5bn.

On Friday, the shares closed at 289.4p.

THG declined to comment on the looming governance changes.

Headline: Hut Group founder Moulding to give up golden share in bid to restore City confidence

Standfirst: The e-commerce group behind Cult Beauty and MyProtein is to apply for a premium London listing after a calamitous week that saw it shed billions of pounds of value, Sky News learns.

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Who’s given Ukraine most aid – and does it have enough rare earth metals to ‘pay back’ US?

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Who's given Ukraine most aid - and does it have enough rare earth metals to 'pay back' US?

How much have America, Britain and the rest paid Ukraine in aid since the Russian invasion? And do they have any hope of getting money back in return?

These are big questions, and they’re likely to dominate much of the discussion in the coming months as Donald Trump pressurises his Ukrainian counterparts for a deal on ending the war. So let’s go through some of the answers.

First off, the question of who has given the most money to Ukraine rather depends on what you’re counting.

War latest: Ukraine agrees minerals deal with US – source

If you’re looking solely at the amount of military support extended since 2022, the US has provided €64bn, compared with €62bn from European nations (including the UK).

But now include other types of support, such as humanitarian and financial assistance, and European support exceeds American (€132bn in total, compared with €114bn from the US).

Divide Europe into its constituent nations, on the other hand, and none of them individually comes anywhere close to the US quantity of aid.

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That being said, simple cash numbers aren’t an especially good measure of a country’s ability to pay.

Look at US support as a percentage of gross domestic product and it comes to 0.5% of GDP. That’s almost precisely the same as the aid from the UK.

Looked at through this prism, it’s other countries which are clearly the most generous: Denmark, Estonia and much of the Baltics providing around 2% of their GDP – a far bigger amount versus their ability to finance it.

Still, compare the aid this time around with previous amounts spent in other conflicts and they are nowhere close.

Lend-Lease during WWII, aid during the Vietnam and Korean Wars, and even the first Gulf War, involved significantly bigger outlays than currently being spent on Ukraine.

That goes not just for the US but also for the UK, Germany and Japan, all of which provided more aid to the Kuwaitis and other affected nations during the first Gulf War.

Even so, it’s clear that the US and others have put significant resources towards Ukraine.

President Trump has been talking recently about recouping $500bn from Ukraine in the form of revenues from mining rare earth metals.

This is, on the face of it, slightly odd. Rare earth metals represent an obscure corner of the periodic table and play a small if important role in electronics and military manufacturing.

The entire market is small – making it essentially implausible that, even if Ukraine suddenly produced the majority of the world’s supply, the president could expect that amount of revenue back in return.

More to the point, while there are a couple of rare earth deposits in Ukraine, they have languished, unexploited, for years. They are so expensive to mine no-one has worked out how to extract the elements and make a profit at the same time.

And even if you presumed they could do, Ukraine would still be a relative minnow in global rare earths production.

Map of Ukraine minerals

Read more:
What minerals does Ukraine have?

Assuming, as one probably should, that Donald Trump didn’t just mean rare earths, but was talking more broadly about “critical minerals” (the two are different things, but let’s not get too pedantic here), there are also one or two other promising mine sites in the country.

There is an old, shuttered alumina plant seized from Russian oligarch Oleg Deripaska. There is a large lithium resource which could, if all went well, be the single biggest lithium mine in Europe.

Yet even taking this into account, Ukraine would still be a relatively small player in global lithium. Not nothing – but not world changing either. Certainly not enough to generate the hundreds of billions of dollars Mr Trump is seeking.

Then again, Ukraine has other resources at its disposal too: vast seams of coal in the Donbas, large iron ore reserves in the south of the country.

Both of these are in or close to Russian occupied areas – which might, from the Ukrainians’ perspective, actually be the point. Old fashioned as this stuff is, it does actually generate significant revenue. It might be Donald Trump’s best hope for some payback.

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Post Office scandal: 21 ‘Capture’ cases now being investigated for miscarriages of justice

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Post Office scandal: 21 ‘Capture’ cases now being investigated for miscarriages of justice

The number of convictions linked to a second Post Office IT scandal being investigated for miscarriages of justice – has more than doubled, Sky News has learned.

Twenty-one Capture cases have now been submitted to the Criminal Cases Review Commission (CCRC) for review.

Before Christmas, it was around eight.

They relate to the Capture computing software, which was used in Post Office branches in the 1990s before the infamous faulty Horizon system was introduced.

Hundreds of sub-postmasters were wrongly accused of stealing after Horizon software caused false shortfalls in branch accounts between 1999 and 2015.

A report last year found that there was a reasonable likelihood that the Capture accounting system, used from the early 1990s until 1999, was also responsible for shortfalls.

If the CCRC finds significant new evidence or legal arguments not previously heard before, cases can be referred back to the Court of Appeal.

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Lawyer for victims, Neil Hudgell from Hudgell Solicitors, says the next steps for the Capture cases and the CCRC are still “some months away”.

He said he is also hopeful that the first cases could be referred to the Court of Appeal before the end of this year.

Screengrabs from Adele Robinson i/v with lawyer for victims of the Capture IT system, Neil Hudgell from Hudgell Solicitors
Source P 175500FR POST OFFICE CAPTURE CASES ROBINSON 0600 VT V2 JJ1
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Lawyer Neil Hudgell described victims of the Capture IT system as ‘hideously damaged people’


“Certainly we will certainly be lobbying,” he said. “The CCRC will be lobbying, the advisory board will be lobbying any interested parties, that these are hideously damaged people of advancing years who need some peace of mind and the quicker that can happen the better.”

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In December the government said it would offer ‘redress’ to Post Office Capture software victims

‘We didn’t talk about it’

Among those submitted to the CCRC – Pat Owen’s Capture case was the first.

Her family have kept her 1998 conviction for stealing from her post office branch a secret for 26 years.

Juliet Shardlow daughter of Pat Owen and Adele
Screengrabs from Adele Robinson i/vs with case study. Family of Pat Owen from Kent who was convicted of 1998 from stealing from her post office branch. Now the Capture IT system is suspected of adding errors to the accounts. 
Source P 175500FR POST OFFICE CAPTURE CASES ROBINSON 0600 VT V2 JJ1
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Juliet Shardlow shows Sky News paperwork which could explain discrepancies logged by Capture

Speaking to Sky News they have opened up for the first time about what happened to her.

Pat was a former sub-postmistress, who was found guilty and given a two-year suspended sentence.

She died in 2003 from heart failure.

Pat Owen and husband David
Screengrabs from Adele Robinson i/vs with case study. Family of Pat Owen from Kent who was convicted of 1998 from stealing from her post office branch. Now the Capture IT system is suspected of adding errors to the accounts. 
Source P 175500FR POST OFFICE CAPTURE CASES ROBINSON 0600 VT V2 JJ1
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David Owen and his wife Pat in happier times

Her daughters describe her as coming home from court after her conviction “a different woman”.

“We didn’t talk about it,” said Juliet Shardlow. “We didn’t talk about it amongst ourselves as a family, we didn’t talk about it with the extended family.

“Our extended family don’t know.”

Pat Owen's daughter Juliet Shardlow
Screengrabs from Adele Robinson i/vs with case study. Family of Pat Owen from Kent who was convicted of 1998 from stealing from her post office branch. Now the Capture IT system is suspected of adding errors to the accounts. 
Source P 175500FR POST OFFICE CAPTURE CASES ROBINSON 0600 VT V2 JJ1
Image:
Juliet Shardlow said her mum Pat was a different person after her conviction

David Owen, Pat’s husband, said she lost a lot of weight after her conviction and at 62 years old “looked like an old gal of 90”.

Capture evidence never heard in court

Pat’s family kept all the documents from her case safe for over two decades and now a key piece of evidence may turn the tide on her conviction, and potentially help others.

A document summarising the findings of an IT expert described the computer Pat used as having “a faulty motherboard”.

It also stated that this “would have produced calculation errors and may have been responsible for the discrepancies subsequently identified by Post Office Counters’ Security and Investigation team.”

Read more from Sky News:
Sub-postmasters: ‘Still going through hell’
Compensation for victims of Capture
Calls on Fujitsu for compensation

The computer expert was due to give evidence in Pat Owen’s defence at court as part of her trial – but failed to turn up on the day.

The family say they never found out exactly why he didn’t show up at court.

David said there was a computer all set up in the courtroom for the expert to use to show malfunctions.

Husband David Owen
Screengrabs from Adele Robinson i/vs with case study. Family of Pat Owen from Kent who was convicted of 1998 from stealing from her post office branch. Now the Capture IT system is suspected of adding errors to the accounts. 
Source P 175500FR POST OFFICE CAPTURE CASES ROBINSON 0600 VT V2 JJ1
Image:
David Owen said his wife Pat never expected to lose her court case

“I heard, now I can’t remember who from, that he’d done work for the Post Office,” he said.

“If he turned up to be a witness in court for us to he wouldn’t get any more work from the Post Office.”

Despite best efforts the expert has never been tracked down. The Post Office has declined to comment.

David also described how his wife never expected to lose her case.

“She was so confident. She knew she didn’t do anything wrong,” he said.

“But when the guilty verdict came out she actually fell to her knees in the dock crying her eyes out shaking.”

He said the judge then asked if he wanted to say anything, and David said he got up in court and spoke at length about his wife’s innocence.

The government announced in December that they will be setting up a redress scheme for Capture victims, similar to Horizon.

So far around 100 people who suffered after being accused of stealing from their branch, while using Capture, could be eligible for redress.

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MP Paul Waugh accuses Meta of turning Facebook Messenger into ‘Epstein’s paedophile island’

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MP Paul Waugh accuses Meta of turning Facebook Messenger into 'Epstein's paedophile island'

An MP has accused Meta of turning Facebook Messenger into “Jeffrey Epstein’s private island” by enabling end-to-end encryption. 

The Science, Innovation and Technology Committee grilled tech giants X, TikTok, Google and Meta today as part of an inquiry into online misinformation and harmful algorithms.

“Twenty years ago, someone like Gary Glitter had to go to the other side of the world to prey on children,” said Labour MP Paul Waugh to Chris Yiu, one of Meta’s directors of public policy.

“Someone like Jeffrey Epstein had to create his own private paedophile island.

“Now, these monsters, all they have to do is go on to set up a group on Facebook Messenger.”

Mr Waugh was referring to Facebook Messenger’s recent implementation of end-to-end encryption, meaning that no one, not even Facebook, can see the contents of encrypted messages.

Law enforcement agencies also cannot see the messages, which is a constant source of tension between tech companies and governments.

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Just last week, Apple removed one of its highest-security tools for users over an alleged request by the Home Office to be able to see its encrypted user data.

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What the Apple security announcement means for your data

“Isn’t it true that you’ve turned Facebook Messenger into Epstein’s own paedophile island and a place where you can do what you want without getting caught?” asked Mr Waugh.

Mr Yiu denied this was the case and said the issue of online child sexual abuse material needed a “whole of society response” where tech companies and law enforcement agencies worked cooperatively.

He also argued end-to-end encryption is a “fundamental technology designed to keep people safe and protect their privacy”.

The select committee’s inquiry is investigating the spread of harmful content online, sparked by last August’s riots.

The widespread unrest took hold across the country after three young girls were stabbed to death in Southport.

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Online network behind far right riots

In the days that followed, illegal content and disinformation spread “widely and quickly” online, according to the communications regulator Ofcom.

Read more from Sky News:
Apple removes end-to-end security encryption tool for UK
Illness kills more than 50 people in Democratic Republic of Congo
Kate Bush, Sam Fender and Damon Albarn release silent protest album

The committee chair Chi Onwurah said Elon Musk, owner of X, was invited to the evidence session but the billionaire did not reply formally.

MP Emily Darlington also quizzed the Meta representative about the company’s recent changes to its content guidelines.

She read out numerous examples of Meta users posting racist, antisemitic and transphobic comments online and asked Mr Yiu how Meta justified allowing those posts to stay online.

“We have received feedback that […] some areas of debates were being suppressed too much on our platform and that some conversations, whilst challenging, should have a space to be discussed,” he said.

X’s representative also faced questions from the MPs, with Ms Darlington asking why verified X users were able to post comments calling politicians rapists and threatening to “rise up and shoot” public figures.

Wifredo Fernandez, X’s senior director for Government Affairs, said he would ask the X team to review the posts.

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