Huddled reports higher revenue, narrower loss

Huddled Group reported higher full-year revenue and a narrower adjusted EBITDA loss as the circular economy e-commerce business prioritised more profitable orders and prepared to consolidate its websites under a single brand.

Huddled Group

Source: Sharecast

The AIM-traded company said revenue from continuing operations rose 44% to £18.65m in the year ended 31 December 2025, from a restated £12.93m a year earlier.

Gross profit increased to £730,000 from £35,000, while the adjusted EBITDA loss narrowed to £2.63m from £2.94m.

The reported loss before tax from continuing operations widened to £4.03m from £3.73m, after £415,000 of amortisation, £171,000 of depreciation and £755,000 of one-off costs, mainly relating to warehouse relocations and restructuring.

Including discontinued operations, the group reported a loss after tax of £4.13m, compared with £3.93m in 2024.

Executive chairman Martin Higginson said the gross profit improvement had been achieved through “deliberate, disciplined decisions” to prioritise quality of earnings over revenue.

Discount Dragon revenue was broadly flat at £10.77m, compared with £10.79m in 2024, reflecting a move towards fewer but more profitable orders in the second half.

The division moved to a gross profit of £396,000 from a gross loss of £151,000, while its adjusted EBITDA loss narrowed 58% to £649,000.

Nutricircle revenue rose to £5.03m from £1.64m since its acquisition in April 2024, with orders more than trebling to 155,555.

The division’s adjusted EBITDA loss narrowed to £5,000 from £68,000.

Boop Beauty revenue increased to £2.84m from £494,000 following its launch in September 2024, but the division made a gross loss of £236,000 and an adjusted EBITDA loss of £863,000.

Huddled said it had decided to pivot the business towards a Beauty Box model to be sold through its Peeko website and marketplaces, after concluding that heavy discounting of branded beauty products had created supplier friction and unattractive margins.

The group said its migration to THG Fulfil was a key operational step, giving it the ability to offer next-day delivery on orders placed up to 11pm.

It said it had also reduced the average number of picks per order, increased average item values and removed loss-making low-value lines.

Cash at the year end stood at £243,000, down from £1.64m a year earlier, while the group moved to net debt of £468,000 from net funds of £1.58m.

After the year end, Huddled raised about £740,000 through a subscription and retail offer, and drew down £525,000 from a debt facility.

In April, the company announced plans to consolidate Discount Dragon, Nutricircle and Boop Beauty into a single e-commerce platform under the Peeko brand, with expected annualised cost savings of more than £500,000.

It also announced the resignations of directors Michael Ashley and Paul Simpson.

Higginson said Huddled had entered 2026 “operationally sound, commercially focused, and built to grow”, with Trustpilot scores at record highs, stronger supplier relationships and marketing channels ready to be reopened at scale.

At 1022 BST, shares in Huddled Group were up 10.34% at 0.8p.

Reporting by Josh White for Sharecast.com.

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