Interim Results and Trading Update

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the UK version of the EU Market Abuse Regulation (2014/596) which is part of UK law by virtue of the European Union (Withdrawal) Act 2018, as amended and supplemented from time to time.

29 September 2025

Huddled Group plc

("Huddled", the "Company" or the "Group")

Interim Results and Trading Update

Significant growth across all brands

Discount Dragon and Nutricircle delivered divisional operating profit in August 2025

Huddled Group plc (AIM:HUD), the circular economy e-commerce business, is pleased to announce its unaudited interim results for the six months to 30 June 2025 (the "Period"), along with an update on trading for Q3 2025 to date.

Highlights

H1 2025 Highlights

Q3 2025 Highlights and Outlook

Martin Higginson, Executive Chairman of Huddled, commented:

"I'm delighted to report that the growth achieved during the Period and since, alongside the hard work the team have put in, has positioned the Group to reach a major milestone - based on current trajectory, we expect the Group to be operationally profitable before head office costs in September 2025. The 81% revenue growth in H1 2025, combined with our focus on improving basket composition, Average Order Value and Basket margin, has helped us begin to deliver this.

"As we transition our fulfilment to THG Ingenuity, which we expect to be complete before Black Friday, we look forward to being able to provide an improved quality of service, allowing us to continue to grow the business sustainably and profitably.

"Our success in diverting surplus goods from waste while delivering tremendous value to consumers shows that sustainability and savings can operate hand in hand."

Enquiries:

For further information please visit www.huddled.com/investors, or contact:

Chairman's statement

I am pleased to report that we expect to achieve net operational profitability before head office costs this month, September 2025. In the preceding month of August we saw both Discount Dragon and Nutricircle achieve profitability despite a backdrop of slightly lower overall revenues, underpinning our confidence in both the surplus sector and our business model.

H1 2025, whilst clearly demonstrating growth and the market opportunity, also highlighted the need to drive Basket Margin across all of our brands. We set about enhancing the team to give us the depth of retail knowledge we need in order to improve our product offering and therefore drive consistency in margin and operational profitability.

At Discount Dragon, we took the decision to undertake a full review of this brand, making significant changes to the team, and slowed down new customer acquisition to allow us to fully understand both basket composition as well as consumer habits. Whilst this has led to us trading behind management's expectations, we are confident that it has given us the platform for future success. We also decided we needed deeper retail knowledge across the business, but especially in Discount Dragon. To this end we asked Michael Ashley to step up from Non-Executive Director to Group CEO, allowing me to focus more on strategy and move into the Executive Chairman role. Michael has a depth of knowledge in the retail space with an illustrious career from Boots, to Holland & Barrett where he held senior roles. He has helped us undertake a detailed analysis, which has now led to a material step change in Average Order Value, but also, more importantly, to a marked increase in Basket Margin, which in turn has driven operational profitability. Our focus now is on building consumer confidence in the offering thus encouraging regular repeat orders.

Nutricircle, on the other hand, has continued to deliver amazing growth both in terms of orders and revenue in the Period. That said, we believe, there is a lot more growth in this brand and, by applying the same methodology as with Discount Dragon, we have set about further broadening the offering with the aim of driving improvements and consistency in the Basket Margin. These incremental enhancements have driven us to consistent operational profitability, and with more improvements on the cards, we expect further traction both in terms of order numbers and Basket Margin.

Much of this success has been down to the work that Michael Ashley and the team have undertaken over the last few months, for which I thank them. The relentless focus on basket composition has delivered success not only in helping us move two of the three brands into profitability in August 2025, notoriously the most difficult month for our business, but also by improving the consistency of our offering. This in turn has led to us expecting operational profitability across the three trading divisions in September 2025, underpinning our confidence that we are on the right track.

Whilst Boop Beauty is still very much in its infancy as a business, we are encouraged by both the uptake of its proposition and the returning customer numbers. Whilst we have allocated time to improve the website, as well as our supply chain, there is still much work to be done. We have further strengthened the team and will focus much of our efforts, as with both Discount Dragon and Nutricircle, on improving this brand's Average Order Value and more importantly its Basket Margin. With over 10% of beauty products, worth a staggering £3.8bn worth, going to waste annually in brand supply chains, we can see there is massive potential for this business.

In Q3 2025, we raised £1.5m of new equity, which included a significant investment from a new major institutional investor. With a strengthened balance sheet, stock position and some short-term debt at the subsidiary level, alongside trading divisions now contributing to head office costs, we are confident we can move to Group profitability within the resources that we have at our disposal.

As we move forward into Q4 2025, our focus is very much on continued sustainable profitable growth, whilst also delivering a smooth transition to our new fulfilment partner. Once fully bedded in, this transition will not only offer our customers an improved service with better accuracy, it will also drive further operational efficiencies in cost savings. In Q4 2025 our focus will be on ensuring we protect and improve the quality of service for existing customers which will not only maintain profitability as we drive more returning customers, but it will also give us the confidence to accelerate marketing to attract more new customers too.

Chief Executive's review

Having moved from a Non-Executive Director position to that of Chief Executive Officer, I was already familiar with the business and what I believed needed to be delivered. My short-term priorities have been to improve the product proposition and presentation, widen the supplier base to improve consistency of the offer, instil a disciplined approach to the supply chain and a wider understanding of key profitability metrics and support and improve the team's capability and capacity whilst delivering operational profit.

Discount Dragon

Discount Dragon is our most mature business with over 180,000 customers on our database. To date the range proposition has been inconsistent with limited choice in key categories such as food cupboard, tea and coffee and alcohol. Sales were dominated by snacks, treats and soft drinks, which led to lower average order values and subsequently lower profit per order.

We have therefore focused on improving the range proposition introducing a much greater choice of branded products in the key product categories we were missing. Simultaneously we have ensured our discounted front basket 'freebie' offers do not exceed a certain value. In other words, ensuring we stick to a hard set of rules both in terms of 'offers' and product range.

This has driven consistency in order value, as well as a marked improvement in the Basket Margin by 20% from Q2 2025 to Q3 2025. This has been the key driver in our move to profitability.

Customers now have better options available to fill their basket and reach the £40 free delivery threshold with relative ease. It is now essential we continue to improve the customer choice in all the key categories. This will, we believe, encourage them to shop more regularly, making them a much more valuable customer.

Our Q4 2025 focus is to:

We have made good progress in Q3 2025, but there is still much to do. Building a solid customer base that buys into our ethos and returns to shop regularly will drive both top and bottom line growth. We will also continue to widen the supplier base to achieve better choice by category. It is now all about driving profitable sales to our established customer base.

Nutricircle

Nutricircle, acquired in April 2024, has benefited from a very consistent core proposition that centres on protein bars and healthy snacks. There is a very strong repeat customer base which has grown steadily from the acquisition. In January 2025, returning customers stood at 5,600, today we are at circa 10,000 repeat purchases a month. The total customer base has grown to in excess of 135,000.

We have focused on making it easier for the customer to buy, with many improvements being made to the website and its functionality, resulting in a better conversion rate of purchases to unique site visitors. This, in conjunction with the changes made to demonstrate the width of choice on the front page of the website with a greater balance of price points, has delivered impressive growth in both Average Order Value and Basket Margin of 19% and 23% respectively from Q2 2025 to Q3 2025, leading to solid operational profitability. We are now seeing good repeat purchasers from a stable customer base as a result of a strong and reliable supplier base.

Our Q4 2025 focus is to:

The next stage of our development is to broaden the product choice into supplements, vitamins and other health, and nutrition categories. This will provide us with the platform to grow the customer database whilst remaining operationally profitable.

Boop Beauty

Boop Beauty is our newest brand, with a database of over 50,000 customers amassed since its relaunch in September 2024, continues to grow at a pace. That said, given the brand is still very much in its early stages, it unsurprisingly is still experiencing some growing pains.

The range proposition and choice of products is not yet where we want it to be with a limited product choice in the key categories of skincare, haircare, lipcare and cosmetics. We have also experienced intermittent stock availability of core lines.

This brand however has huge potential for significant growth and profitability. When we present the brands and have healthy stock the sales and basket margin are instantly strong. Alongside this, the product economics in beauty are very favourable and the majority of products are small in size with a high retail price point and strong margins.

The number one priority is to drive better product supply in the core categories and lines. We need to widen the supplier base as well as broaden the choice in key categories. This work is already well underway and we have strengthened the team to bring in beauty specific skills and buying knowledge to deliver against our ambitions.

With the necessary improvement in range and additional products, we expect Boop Beauty to be profitable on fewer orders than our other brands. The move to a variable cost fulfilment centre not only helps us achieve this low breakeven position, it improves our offering with faster delivery times and later order cut-offs.

Our Q4 2025 focus is to:

Boop has achieved a lot in only 12 months, with orders growing from a modest 862 in the month of its relaunch in September 2024, to over 7,000 this month. We now have to apply the same formula and disciplines we have introduced into our other brands to ensure this grows quickly and profitably as we go into the crucial peak period of the year.

Summary

We have continued to learn and hone our offering. The improvements we have made in Q3 2025 have helped us transition into operational profitability before head office costs - it's now about building frequency of repeat customers whilst adding new customers in a controlled and profitable manner.

Outlook

We look forward to the busy Q4 2025 period with excitement. We will continue to improve the proposition in all three brands whilst managing the transition of our fulfilment operations to THG Ingenuity, which is expected to be fully embedded and operational ahead of Black Friday. The ability to be able to scale whilst improving customer order accuracy and service will, we believe, improve the frequency of repeat customer purchases. This, combined with maintaining the Basket Margin, gives us a solid platform on which to build. This foundation positions us for sustained growth, with Q4 2025 revenue expected to be not less than that of Q3 2025 and H2 2025 losses are expected to narrow from those in H1 2025 as a result.