Interim Results and Trading Update

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

• Revenue increased 81% to £9.48m (H1 2024: £5.25m)
• Discount Dragon revenue increased 10% compared to H1 2024 with orders up 14%
• Nutricircle revenue increased 621% compared to H1 2024 [1] with orders up 768%
• Boop Beauty H1 2025 revenue of £1.58m following its relaunch in September 2024
• Over 4m items saved from going to waste
• Over 292,000 orders in the Period, up 98% from H1 2024

Q3 2025 Highlights and Outlook

• Discount Dragon and Nutricircle reported divisional operating profit in August 2025
• Group expects to report its maiden net operating profit across all brands before head office costs in September 2025
• Q3 2025 revenue is expected to be circa £4.9m, an increase of 43% from Q3 2024 (Q3 2024: £3.4m)
• Discount Dragon improved Basket Margin [2] by 20% in Q3 2025 vs Q2 2025
• Nutricircle Q3 2025 revenue is expected to be circa £1.4m, an increase of 146% from Q3 2024 (Q3 2024: £0.6m)
• Nutricircle improved Average Order Value [3] by 19% and Basket Margin by 23% versus Q2 2025
• £1.5m raised through institutional demand, at the prevailing market price, to provide capital for future growth, stock and marketing
• Partnership with THG Ingenuity announced, enabling quicker turnaround times, highly scalable capacity and improved proximity to potential stock suppliers
• 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

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."

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:

• Improve frequency of returning customers
• Improve customer service through delivery accuracy and speed
• Offer next day delivery with late cut-off
• Target customer cohorts
• Build our organic social marketing with core messaging around Saving Money and the Planet
• Build brand personality
• Continue to improve and review stock availability and range

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:

• Improve and expand product range
• Increase Average Order Value and Basket Margin
• Build and enhance brand personality
• Improve delivery accuracy and speed
• Improve customer experience

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:

• Improve stock position
• Broaden categories - hair, skin and make up
• Increase customer database
• Improve delivery cut-off time and speed of delivery
• Focus on tone of voice - create a personality for the brand
• Expand and improve visibility on social media channels

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.

HUDDLED GROUP PLC

CONSOLIDATED INCOME STATEMENT

for the six months ended 30 June 2025

CAPITAL AND RESERVES ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT

HUDDLED GROUP PLC

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS

for the six months ended 30 June 2025

1 GENERAL INFORMATION

The interim consolidated financial statements of the Group for the period ended 30 June 2025 were authorised for issue in accordance with a resolution of the directors on 26 September 2025. Huddled Group plc ("the Company") is a Public Limited Company quoted on AIM, incorporated in England and Wales. The interim consolidated financial statements do not comprise statutory accounts within the meaning of section 434 of the Companies Act 2006.

2 ACCOUNTING POLICIES

2.1 Basis of preparation

The interim consolidated financial statements of the Group for the six months ended 30 June 2025 have been prepared in accordance with IAS 34 Interim Financial Reporting.

The entities consolidated in the interim financial statements of the Group for the six months to 30 June 2025 comprise the Company and its subsidiaries (together referred to as "the Group").

The interim consolidated financial statements do not include all the information and disclosures required in the annual financial statements and should be read in conjunction with the Group's annual audited consolidated financial statements for the year ended 31 December 2024.

The directors are satisfied that, at the time of approving the interim consolidated financial statements, it is appropriate to adopt a going concern basis in accordance with the recognition and measurement criteria of International Financial Reporting Standards ("IFRS") as adopted by the European Union.

In reaching this conclusion, the directors considered the financial position of the Group and prepared forecasts and projections for the next 12 months, taking into account reasonably possible changes in trading performance and capital expenditure requirements.

2.2 Accounting policies

The principal accounting policies adopted in the preparation of these interim statements are consistent with those applied in the preparation of the Group's annual consolidated financial statements for the year ended 31 December 2024 other than the Group has adopted amended financial standards effective as of 1 January 2025. None of the amendments adopted on 1 January 2025 have had a material impact on the interim statements of the Group.

The preparation of these consolidated interim financial statements requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates in preparing these consolidated interim financial statements.

3 SEGMENTAL INFORMATION

The Group's primary reporting format for segmental information is business segments which reflect the management reporting structure in the Group.

Six months to 30 June 2025

*Adjusted administrative expenses exclude depreciation, amortisation, gain/loss on disposal of assets and one-off costs.

**Adjusted EBITDA is a non-GAAP metric.

All revenue generated in the period originated in the United Kingdom. The Group had no customers representing 10% or more of the Group's total revenue in the period.

4 ONE-OFF COSTS

5 DISCONTINUED OPERATIONS

The Let's Explore business was discontinued in the period and the result for this business has been excluded from the continuing results of the Group.

Summary income statement

The results for Let's Explore included in the income statement as discontinued operations are as follows:

*Adjusted EBITDA is a non-GAAP metric.

Summary cash flow statement

The net cash flows for Let's Explore included in the cash flow statement are as follows:

Loss per share is calculated using the weighted average number of shares outstanding during each period. Under IAS 33, diluted loss per share is presented when a company has potential share obligations. However, IAS 33 prohibits diluted EPS from appearing better than basic loss per share. Since including potential ordinary shares would decrease the loss per share, these effects are excluded from the diluted loss per share calculation.

7 PROPERTY, PLANT AND EQUIPMENT

Fixtures, fittings and equipment Motor vehicles Right-of-use assets Total £'000 £'000 £'000 £'000 Cost At 1 January 2025 300 162 132 594 Additions 170 - - 170 Disposals (66) - (132) (198) _____ _____ _____ _____ At 30 June 2025 404 162 - 566 _____ _____ _____ _____ Depreciation At 1 January 2025 86 46 111 243 Depreciation of owned assets 72 12 - 84 Depreciation of leased assets - - 11 11 Disposals (18) - (122) (140) _____ _____ _____ _____ At 30 June 2025 140 58 - 198 _____ _____ _____ _____ Net book value 30 June 2025 264 104 - 368 _____ _____ _____ _____ 31 December 2024 214 116 21 351 _____ _____ _____ _____

The method of depreciation for each class of depreciable asset is:

Fixtures, fittings and equipment - three years on a straight-line basis

Motor vehicles - between three and seven years on a straight-line basis

Right-of-use assets - over the term of the lease on a straight-line basis

8 INTANGIBLE ASSETS

Development costs Goodwill on consolidation Other intangible assets Total £'000 £'000 £'000 £'000 Cost At 1 January 2025 785 2,031 2,337 5,153 Additions 135 - 22 157 _____ _____ _____ _____ At 30 June 2025 920 2,031 2,359 5,310 _____ _____ _____ _____ Amortisation At 1 January 2025 627 - 394 1,021 Amortisation charge 48 - 158 206 _____ _____ _____ _____ At 30 June 2025 675 - 552 1,227 _____ _____ _____ _____ Net book value 30 June 2025 245 2,031 1,807 4,083 _____ _____ _____ _____ 31 December 2024 158 2,031 1,943 4,132 _____ _____ _____ _____

Development costs are comprised of software. Development costs are amortised on a straight-line basis over 3 years.

Other intangible assets comprise the Discount Dragon brand, Discount Dragon and Nutricircle customer databases, domain names and trademark costs. Other intangible assets are amortised over two or three years.

Amortisation is charged to administrative costs in the income statement.

9 TRADE AND OTHER RECEIVABLES

Ordinary shares of 0.040108663 pence issued and fully paid up

12 RESERVES

Share premium: amount subscribed for share capital in excess of nominal value.

Foreign exchange reserve: reserve arising on translation of the Group's overseas subsidiary.

Merger reserve: premium above the nominal value of shares issued for equity consideration.

Capital redemption reserve: nominal value of the Company's own shares purchased and cancelled.

Equity reserve: provision for deferred equity purchase consideration to be issued in the future.

Non-controlling interest: the value of subsidiaries' equity not owned by the parent company.

13 RELATED PARTY TRANSACTIONS

M J Higginson, a director of Huddled Group plc, is a director and controlling shareholder of M Capital Investment Properties Limited. Services to the value of £35,000 were invoiced in the period by M Capital Investment Properties Limited to Huddled Group plc (year to 31 December 2024: £24,000). At 30 June 2025, Huddled Group plc owed £Nil to M Capital Investment Properties Limited (31 December 2024: £Nil).

R Miller, a director of Huddled Group plc during the period, is a director of Robin Miller Consultants Ltd. In the period, services totalling £8,000 were billed to Huddled Group plc from Robin Miller Consultants Ltd (year to 31 December 2024: £16,000). At 30 June 2025, £1,000 was owing from Huddled Group plc to Robin Miller Consultants Ltd (31 December 2023: £1,000).

D F G Wortley, a director of Huddled Group plc, repaid a loan advanced in a prior period. At 30 June 2025, D F G Wortley owed £nil to the Group (31 December 2024: £5,000).

M J Higginson, a director of Huddled Group plc, repaid funds advanced in a prior period. At 30 June 2025, M J Higginson owed £nil to the Group (31 December 2024: £10,000).

S J Higginson, the son of M J Higginson, a director of the Company, charged consultancy fees of £23,000 to the Group during the period (year to 31 December 2024: £91,000). At the period end the company owed £nil to S J Higginson (31 December 2024: £8,000).

The key management personnel are considered to be the Board of Directors. The total amounts paid to key management personnel during the period was £312,000. The total amounts paid to key management personnel during the year to 31 December 2024 was £832,000.

14 POST BALANCE SHEET EVENTS

Following an approach from Shard Capital Partners LLP and a new institutional investor, the Company agreed to issue 46,875,000 new ordinary shares at 3.2 pence per share. The shares were issued in two tranches: 34,468,625 shares on 11 July 2025 under existing directors' authorities, and the remaining 12,406,375 shares on 12 August 2025 following shareholder approval of additional authorities at a general meeting held on 8 August 2025.

[1] Nutricircle was acquired on 11 April 2024

[2] Average revenue less cost of goods sold per order

[3] Average revenue per order