Huddled eyes ecommerce growth
Ambitious ecommerce group Huddled has reported growing revenues from its Discount Dragon and Let’s Explore businesses of £2.4m and says it is “well-positioned for future growth” following the post-period acquisition of Food Circle Supermarket.
Discount Dragon has enjoyed post-acquisition revenue of £1.6m (17 October – 31 December 2023).
In September 2023 Huddled bought Leigh-based Discount Dragon in a £4m deal as part of a strategy to create a portfolio of e-commerce brands.
Discount Dragon is its trading business, which sells branded dry and tinned groceries, and beverages at a big discount to supermarkets.
The group also acquired Sheffield-based Food Circle Supermarket in April 2024, a business it says has “significant growth potential” in a niche sector and further strengthening our position in the online surplus food space.
In the coming weeks a rebrand to ‘Nutricircle’ will start a focus further into the nutritional eating market.
During the year, the Group revised its strategy for growth following the sale of its Immotion and Uvisan businesses, and returned £12.7m to shareholders via a share buyback programme, and the acquisition of Discount Dragon.
Headquartered in Nottingham, the business is led by entrepreneur Martin Higginson, Chief Executive, who commented: “Generating a profit of £13.0m in 2023 allowed us to return significant funds to shareholders as well as enabling us to transition into a group focused on developing high growth e-commerce brands, which is a market in which we see great potential.
“Discount Dragon has continued to deliver solid growth both in terms of revenue and customer numbers since we acquired the business. At a challenging time for consumers, the offering is extremely relevant, and we feel that being able to offer great products, including many of the biggest brands at significantly discounted prices, delivered to the customer’s door, will have wide appeal. Alongside this, we are playing our part in reducing food waste by offering short-dated, mispackaged or other surplus stock as part of our core range.
“Delivering on our strategy of building a Group of high growth e-commerce businesses, the acquisition of Food Circle Supermarket bolsters our position in the online surplus food sector and introduces a broader range of customers to the Group, with a specific focus on health and nutrition, which is a fast-growing space in the sector.
“Supported by a strong balance sheet, the next 12 months will be a year of cash investment in the key areas of marketing, stock and fulfilment. We are confident this investment will continue to stimulate growth and deliver long term shareholder value.”
