Huddled Group (LSE:HUD) — Full Year Results

0:02 Good morning and welcome to the HUDDLED GROUP PLC full year results investor presentation. Throughout this recorded presentation, investors will be in listen only mode. Questions are encouraged and they can be submitted at any time using the Q and A tab situated on the right hand corner of your screen. Simply type in your questions and press send. The company may not be in a position to answer every question received during the meeting itself. However, the company can review all questions submitted today and publish responses, which is appropriate to do so. Before we begin, I would like to submit the following poll.

0:33 And I would now like to hand you over to CEO, Martin Higginson. Good morning to you. Good morning. Thank you very much, and and thanks, everybody, for joining. So we'll try and canter through the investor presentation so we can leave more time for investor questions, at the end. We've also got three videos that we'll we'll play throughout the presentation. These are the three TV advertisements that we've got for each brand. So, well, let's get started, and let's get sort of straight into it. So really, you know, what is HUDDLED GROUP? And, you know, we like to think that we are a force for good. And I think at this particular moment in time, I think we are extremely well positioned not only to deliver sustainability, but also savings.

1:22 And I think people are now more aware than ever before of the need to stop surplus goods going to waste. And there's a lot of of goods that do go to waste, and we're doing our bit to sort of help help that. And also, I think at this again, at this moment in time, there's a real need for people to save some cash. So we'd like to think that we are well positioned in terms of helping with a sort of positive social and environmental and economic impact, as well as helping people save cash in their sort of everyday savings. So moving on to the sort of next slide, you know, we see that we are a sort of positive social and environmental company.

2:08 We see ourselves very much as a sort of circular economy business. As I touched on before, there is a lot of stuff that goes to waste. And we see more and more of this, not just in groceries and alcohol, but also with our brands such as NutraCircle in the wellness and sports nutrition area. And then laterally with BOOP Beauty in cosmetics. So, our focus really is in helping these brands save that surplus from going to waste and ultimately to landfill. So, moving on to the next slide. Just to sort of put some numbers around that. Last year, we saved 140,000 households. It's actually saved money by buying from us. Normally, discounts can be anywhere between 5060% against retail prices. So, it's a big, big saving.

3:01 Pounds 5,700,000 items were saved from unnecessarily going to waste. So that's a big ticket item, a big number, and that will continue to increase as we march forward into sort of 2025. Nearly 5,000 tonnes of food waste was diverted from landfill. 12,000 tonnes of CO2 emissions avoided. So, I think you can start sort of seeing that this is a positive force for good. And as a byproduct, we worked with a number of our partners to make sure that collectively we donated some 500,000 items to food charities across The UK. So on to the next slide. So how does it work? What do we do? Well, first of all and it doesn't really matter which brand it is, whether it's Discount Dragon, NutriCircle, or Boot Beauty, we buy surplus stock from manufacturers and retailers.

3:58 Often, sometimes there's a wholesaler in the middle, but our aim is to try and move more and more closer to the actual manufacturer. And this by once we buy that, it avoids unnecessary waste. We then they all come into our warehouse. We then sell the goods online at a fraction of their their usual price. So we can, deliver those savings direct to the consumer's pocket. And then we deliver the goods, straight to the customer's door. So a very, very simple, model, and when it works, it's a real, win win for everybody along that chain. So on to the next slide. How do we do it? What's our secret? Well, you know, it's you know, we want to be in the moment. We want to sort of be able to work with partners.

4:49 We'd we'd start building deeper and deeper relationships. And a number of those are now directly with the manufacturers themselves. And by working closely with them, we can really help them manage their whole supply cycle. And often the question we get asked is, you know, will people stop producing surplus goods? Will there be will your supply chain dry up? And and I think the simple answer to that is no. You know, supermarkets now, a lot of the goods are on sale of return. They continue to over order. There's things like packaging changes, mispackaging. There's a whole plethora of different reasons why there's an oversupply. We're So, not seeing any reduction, any slowdown in that. In fact, as we get closer and closer to a number of the manufacturers, we're seeing things unlock and that number actually

5:42 increase as we become the preferred sort of outlet for their surplus goods. So moving on to the next slide. So let's sort of introduce our businesses, and let's talk about each one individually. And we've done these in alphabetical order. There's no other reason for that. So we're going to start off with BOOP Beauty. So just on to the next slide, you'll see and then click on to the next one. BOOP Beauty is about rescuing, surplus beauty and cosmetics goods. We acquired the business back in July 2024, and it was a tiny, tiny business when we when we acquired it. It was set up by the founder, Yasmin, and she she set this up in her garage.

6:28 She had a great idea. She was the ex, in house counsel for L'Oreal, and great idea. She'd got the marketing right. She'd got the PR right. But I think she really lacked the resource in order to to get the stock that she needed in order to drive the business, not only the stock, but also the marketing. So last year, you know, fairly small start. We launched it in September 24. Revenue for the year was just GBP $05,000,000, orders about GBP 13,000, and you can see the AOV. I think what's interesting is where BOOP sits today. In March, we did just over sort of £330,000 of revenue, and that was double, well, sorry, that was, the equivalent to January and February combined.

7:19 So you can see the growth of that business. And as we march forward, we see great, sort of opportunity, in this area. We've got great margins, good AOV. We've just signed up, you can see her there, Olivia Bowen, TV reality star, to be the face of BOOP and we're going to sort of use her in the TV adverts. So, I'd like to just show you the latest TV advert. This is going to launch, I think, at the end of this week on ITV one, in the morning. So we'll just play the advert so you can see it. And this is the first time, I think, any of us have have seen this advert.

8:04 This is my secret to getting amazing deals on luxury beauty products. This is Boop Beauty. It's surplus beauty products at fantastic prices. So far this year, I got a Gucci mattifying primer for less than 20 pounds, the Odaplex traveling stylist kit for only $39.99, and Tom Ford lost cherry for under 100 pounds. But you missed out. Don't miss the new deals dropping this month at Boot. If you know, you go to bootbeauty.co.uk. I hope you're as excited as we are to to see that advert. It will be aired, later on this week on ITV one, on Breakfast TV. So, fingers crossed, it does exactly what we we hope it will do.

8:50 So as we move on to the next brand, Discount Dragon, and as most of you already know, Discount Dragon rescues groceries, dry goods, and alcohol products, mainly what we like to think as sort of snacks and and treats, stuff that you can sort of enjoy the weekend. Revenue last year, 10.8. Orders, 285,000. AOV, pretty solid at 37. And again, as we march on and we move on to sort of quarter one of this year, where are we at with Discount Dragon? Well, we had to clear and sail in January. And just to reassure people, the business bounced back immediately in February and March, revenues of sort of circa £1,000,000 in those months.

9:38 Why aren't we growing this faster? Well, I think one of the challenges that we faced is we've seen meteoric growth in both NutraCircle and BOOP. And as I've said many times, we were, or we have been limited with our warehouse. In quarter three, we quarter four of last year, we were

9:59 able to do 110,000, parcels across the whole group. That was really at the limit of what we could do. In quarter one of this year, we did 137,000, which stretched us to virtually to breaking point. Now, we've added another 40,000 square feet. That is just and so coming online now. We're starting to stress test that. We did, I think last week, we did 2,400 orders in a single day. So, we know that we can do sort of 180,000 in a quarter. I think we could actually stress test that even further. So, as we sort of march on, we're now about sort of getting Discount Dragon and getting it back on track and growing it accordingly.

10:46 We've altered a few things in Discount Dragon, sort of customer feedback, also trying to make it easier for the warehouse, our warehouse colleagues, as well as making it easier for the consumer, easier to order, then also maintain, or if not improve AOV. So, we've got a lot more to sort of bulk buys or tray buys. This means we can pass on the additional savings to the consumer. But it also means that we're not having to split a tray into individual items. So it's much, much easier to pack. So we've got less orders now in an average parcel, which makes it easier for our warehouse colleagues, and it actually means that we can get more orders out of the door. And we're seeing that's been very, very well received.

11:33 And AOV at the moment is just starting to sort of tick up slowly. So fingers crossed, we'll sort of see the benefits of that as we move forward. I'd now like to just sort of take a minute or two just to sort of show you the the the TV ad, for Discount Dragon.

11:52 These are just some of the amazing deals people bought in March at Discount Dragon. Deals like a 12 pack of Coke Zero for just 99 p. Surf three in one capsules, only $2.99. 24 Mars bars for less than £6, and sweet deals like Lucky Charms for just a penny. But the rest of you missed out. Discount Dragon buys surplus stock and turns it into spectacular deals. Don't miss out. Check out today's deals now at discountdragon.co.uk.

12:27 So what we just wanted with discount dragon, it's all about missing out. And what we show there is goods that were on sale last month so that you can get a flavour of what bargains we have in our store and what you may have missed out on. And we've found that's been very, very successful in terms of driving

12:48 customers. And I think what's important to remember is that this is not a business that is lacking demand. We're seeing huge demand across all of the three brands. This is about sort of the balancing act between demand and our warehouse and getting the goods to the consumer on time. If we don't get the goods to the consumer on time, then we know that we're letting people down. And I think, you know, as talked about many times before, we we must all now march to the sort of drumbeat that Amazon's set. So there is an expectation of from customers that they're gonna get their order ideally the next day, but at worst sort of, you know, forty eight to seventy two hours. And our goal is to really strive to getting goods to people the next day, and we're working very closely with our distribution partners to be able to do that, not only for Discount Dragon, but also for BOOP and NutriCircle.

13:43 So let's move on to NutriCircle next. Again, we we acquired this business, last year. It was acquired in in April 2024. Revenues were around sort of 1,600,000 for the year. Good orders, AOV of about £34. And it's a slightly less sort of AOV on this business because we've been attracting so many, new customers. But we're starting to see that balance, come back in our sort of favor. And just to put it into context, in terms of the meteoric growth we're seeing from this business, in March, we recorded revenues of just over £435,000 for this business. So you can sort of see against a sort of full year revenue or pretty much a three quarter year revenue of £1,600,000 You can sort of see where that business or this business is heading.

14:44 Very much focused on wellness and sports nutrition, we're going to expand the range slightly, which we think will drive up AOV. We're seeing amazing repeat customers from this brand. And I think if we can just add, whether it be vitamins or whether it be whey powder or some other sort of wellness products, we can see that adding those into your basket will just become a natural thing. And also, you will order regularly. So, we're seeing customers ordering every month this product, and as I said before, coming back on on a in a sort of timely basis. So let's just look at the the the sort of final TV advert. It'll just give people a sort of flavor for for what we're about and how this is working.

15:36 When protein is part of your routine, celebrate every step, rep, and set when you save at NutriCircle. At NutriCircle, we're rescuing surplus protein products from the big brands you love and letting you have them for up to 60% off. With massive savings on protein bars, protein shakes, snacks, and energy drinks, elevate your game, not your spending. Find the big brands in protein now and save at NutriCircle dot co dot u k.

16:08 Thanks very much. And, no, we've got a you know, not only is that that that advert, up and running, but we've got another advert being made as we as we speak, using sort of some of our own, shot footage. So quite excited about that. Those adverts for NutriCircle will be running on ITV two. We find that it's it's a great audience, late night on ITV two, sort of around Love Island and then into, sort of things like Dad and that sort of programming. It's performed very well for us before. And as we now have got the additional sort of 40,000 square feet of warehouse space, we can start ramping that up and start ramping orders up across all of the brands. So flicking to the next slide, sort of understanding our impact.

16:56 And I'm not going to spend too long on this. Look, we are committed. We've got this commitment to, you know, to the planet to being able to work with our partners closely, help them, balance up their their ESG policies, help them really, you know, deliver a a sort of sustainable set of criteria. We've just recently started doing impact reports for some of our partners, which allows them to show to not only their boards, but ultimately to their customers, how they're reducing, if not stopping waste and working with us to have a positive impact on their internal people, our people, and ultimately on sort of, you know, the prosperity of the customers that we serve.

17:47 So, you know, in terms of where we are, we are very much about people, planet and prosperity. People, we want to help people save money across the piece. We are committed to doing that, and that at the forefront of everything that we do. But as a byproduct of that, we can help the impact on the planet. And I think we do help prosperity in, you know, we're growing this business, we're growing it rapidly. We can see our March to profitability is on the horizon. You know, as I touched on in the video update, I think if we hadn't had the sort of warehouse sort of lift challenge and some of the sort of DPD issues, which are now firmly behind us, I'm glad to say, then March would have been operationally profitable across all three brands.

18:37 So, you know, we can see it, we can touch it, we can smell it. So, you know, we're we're very much committed to to driving that forward. So just getting into our results, and I'm gonna hand over to to Dan, our sort of chief financial officer, who will run you through the results. Yeah, no problem. Thanks Martin. Yes, so, know, really a lot of this and as Martin sort of touched on, it's we're getting to a stage now where, you know, as we look forward, it's more exciting and we we feel we're we're sort of getting the business to where it needs to be. But looking back to last year, there was there was a a loss as was expected, huge revenue growth, we'll we'll sort of come on to on the next slide.

19:27 Discount Dragon for the year made a sort of gross loss of 151,000. Now that's sort of stated after a stock provision of 99,000, And, of course, the business sort of bore a lot of the warehouse costs and a lot of marketing costs as we grew. It had the lion's share of the warehousing costs. So was it was hit pretty hard with that. NutriCircle made gross profit, and BOOP paid a small gross loss, but that's from a standing start really when we relaunched in September. So we're we're we're very encouraged by by that result of that business. I'm going to just move on to talk about the revenue progression. I think this is probably more interesting.

20:12 So you can see Discount Dragon grew from a little over 2,000,000 in the first quarter to over 3,000,000 in quarter four. And then as we went through the year, we layered on the other two businesses with Nutri Circle sort of coming in quarter two with with revenue just under £350,000. And then by quarter four, we'd sort of grown that to over 700,001.6 for the year. And then boot from, you know, mid mid September, standing start, 30,000 revenue in in September, and then, you know, we got up to almost 500,000 in quarter four. And as as Martin said, know, that's that's sort of growing further as we go into the to the into the new year in 2025.

21:01 So that's probably as much as I say on this, but happy to sort of field any questions on the numbers as we get into the Q and A. Thanks, Dan. So, yeah, I think, you you can start sort of seeing the growth of the business. You can see NutriCircle there, you know, 1.6 for the year. And, you know, on its current run rate, think, know, it's going to get close to that in the sort of forthcoming quarter. So you can really sort of start seeing where that's growing. BOOP Beauty, you know, four ninety four for the year, and as I touched on before, three thirty two in March. And I think with the TV adverts that we've got for BOOP starting, we're sort of quite excited about where that brand can go.

21:51 So look, why invest with us?

21:53 And it's not all about the 15% discount, but we do like to share that. So if you are an investor and you want the 15% discount across all three brands, then please do drop us an email at [email protected]. But we think this is a really, really exciting business. The management, we're highly committed. The board owns just shy 20% of this business across the employees, including the board. We own 32%, 33% of this business, so around a third of the business. So we are committed not only financially, but mentally, physically, and every other which way you can sort of think about.

22:41 Last year, look, I hate losing money. It's not something that we want to be doing. We knew we had to go through that pain. We knew we had to invest in the business. We know where we can see this going. We can see the growth. This is not one of is there demand for the product? The demand for our product is immense. And every time we run TV adverts, every time we run radio or Facebook or Instagram or go on TikTok, we can see the website lights up. We can see the inflow of visitors to our sites is amazing. It's one of about this balance of getting the warehouse sorted out, making sure that we're delivering to people on time, making sure that then we keep that demand and keep that balance accordingly scaled up. So, where do we go? You know, are we on the march to profitability? Yes, we are.

23:40 As I touched on before, this is a tipping point business. Our marketing costs, our warehouse costs are relatively fixed. Of course, we've got marketing, but marketing we can throttle on or off as as we need to. We've decided to to sort of start accelerating that. And now, as we've got customers and the customers are coming back, they're helping to pay for the marketing of the new customers. And just to put that into context, marketing, it costs us slightly more to acquire a customer than he probably than we make out of them in the first instance. But on the basis that they come back and and our offering is good and we get the goods to you in a timely manner, then we know people come back. And the second time, we've no marketing costs. So, therefore, the profit contribution to the bottom line increases and so on and so forth. So as I said, very much a tipping point business.

24:30 And if you're so inclined, please do take the 15% discount. Not only are you going to save 50%, 60%, you're now going to save an extra 15% as well. So that sort of more or less sort of concludes the presentation. We are very, very happy to get into questions. There's no questions that are off bounds, so feel free to ask whatever comes up to. Fantastic. Martin, Dan, thank you very much indeed for your presentation. I will now turn your cameras back on. Ladies and gentlemen, please do continue to submit your questions using the Q and A tab situated on the top right corner of your screen. Martin, Dan, as you can see, we have received a number of questions, both pre submitted and throughout today's meeting from investors. And I wanted to start off the Q and A session with these. The first one reads as follows.

25:24 When does the company expect to reach cash flow positive status? And when can investors expect to see future revenue forecasts released? Okay. So dealing with that, sort of two questions there. Operationally, we think the businesses, they're they're pretty much there in terms of profitability. As I touched on in the video update, I think if it hadn't been for those little minor things, we would have been operationally profitable. We think the group will be cash flow profitable in H2 of this year, but we're now sort of very, very close, as I said, to making a contribution to the sort of PLC overheads, and we can see that on the horizon.

26:10 So we are quite relaxed on that. In terms of future forecasts, people may be aware or may not be aware. Zoos, our nominated adviser, put out a research note this morning with some detailed forecasts. Those that aren't able to access it through the normal channels may be able to find it on Research Tree, and we will also look to putting a link onto our website Research Tree or to Research Tree in in the coming days. Thank you, Martin. Next question is, does does the 2nd Floor area mean that warehouse costs will rise in line with this, or are there material savings possible across the two floors? Okay, so great question First of all, we've had the costs of the additional floor in since January and we've been absorbing that We are in an old mill.

27:09 We're on the 3rd And 4th Floor. We've now got a dedicated lift. So each floor is around 40,000 square feet. So the space that we operate in is, well, it's cheap. I think there's no other word. It's not relatively cheap. It is cheap. Do we get efficiencies?

27:27 Yes, we're now able to put BOOP and NutriCircle onto its own dedicated floor with its own dedicated teams. We're not increasing staff costs. What we've done is we've just managed to allocate teams across the piece accordingly, and Discount Dragon then has its own floor. We'll get efficiencies in what we were doing historically is we were having goods on the 4th Floor, and then we were moving them down to the to the 3rd Floor. So we were having, you know, more touches of that stock than we would like. Ideally, we want as few touches on the stock as possible. Goods come in. They're on the floor. They get picked, goods go out. We want to reduce the number of physical touches on a product, which means we can improve productivity.

28:15 That doesn't mean that we have to increase staff costs. It just means we have to be more efficient in what we're doing. And as I touched on before, you know, we're already starting to stress test that. We did 2,400 and some odd on a day last week without any problems. What this means is that we're able to get goods out next day to people. We've got a next day service with DPD. At the moment, we're running that six days a week for collections. We want to run that seven days a week, so that ultimately, in a very short order, we can say to customers, order by 3PM, and you're going to get your goods tomorrow without additional costs. Thank you, Martin. And another question on the same topic. When do you expect the second warehouse floor to begin adding meaningfully to group orders revenues?

29:07 Well, the the warehouse in itself, doesn't necessarily add add to revenues. What it does is it it gives us the ability to market more, and it gives us the ability to get more orders out of the door. So, the simple answer is we started to see the improvements last week. We were happy with what we were able to process, and that's now given us the confidence to start doing some more TV advertising. As I touched on before, BOOP will start doing some small TV adverts this month, same with NutriCircle and same with Discount Dragon. So we're going to sort of increase it slowly. We don't want to go too crazy because we want to make sure that we are operationally profitable. So, we're always keeping that fine line between operational profitability and growing the business as well.

29:54 Thank you. Next question we've got here is, much effort has been put into winning customers, which has pulled the group AOV down from historic levels. When do you see this beginning to change for the better? Yeah, look, we've invested money in acquiring customers, and I think that's absolutely the right thing to do. We needed to scale the business. This, as I've touched on before, this is a tipping point business. And as the number of returning customers becomes more than the number of new customers, which we're starting to see that happen, then the AOV will naturally tip up. But we're not going to slow down in terms of acquiring new customers, as I touched on before. Demand is fantastic for these products. We've got fixed costs. And as the operational gearing kicks in, then that will deliver more profit, and the AOV will just naturally tick up in time.

30:42 Thank you. And the next question we've got is on growth potential. Could you describe the growth potential? How big can this business get?

30:50 Obviously, I can't get into forecasting, but we see the market as being immense. We see the supply of surplus products being huge. There's no slowdown. And demand, as I touched on before, every time we run a TV advert, every time we run radio or Facebook or TikTok promotions, we see our website light up. So I don't think there's any issue with demand and scaling this business. You know, it's really up to us as to as to how big we want to grow it. Thank you. And two questions here. How do you source products? Do you have a strong relationship with retailers, distributors?

31:34 So just to to put it into context, historically, most surplus stocks stock went to what were called jobbers. And they were people that would then sell it on to to market stall holders and and and the like. We've come in and we've been a disruptor in in this chain. And we're now working with more and more manufacturers and brands themselves, as not only can we share with them our impact reports, in other words, what goods they're saving from going to landfill, But we can also share with them our plans and also help them protect their brands as well So, we've been working with Boot Beauty is probably a good example where a lot of high cosmetic brands, where they've got huge margins in their product it's all about protecting their brand. So what we're able to do is work with them, work with them in terms of what the pricing should be, and also work with them in terms of the customer messaging that we can give them an impact report that shows stuff not going to waste. So we just try and work closely with all of our partners. And the closer we work, the more we move up the food chain. And I think we're dealing with more and more manufacturers now than we were definitely than we were last year. And I think every month that goes on, we see more manufacturers contacting us and wanting to work directly with us.

33:03 Thank you, Martin. Next question here is, which division do you think has the greatest potential for shareholder returns?

33:11 So I think all the brands have got great potential. You know, in many ways, Discount Dragon is the broadest church because it appeals to the sort of widest audience. NutriCircle is sort of quite niche, but very loyal customer base. And as somebody mentioned to me before, the increase in sports nutrition and wellness, you know, over the last year or so has really boomed. So, that business continues to grow. And the loyalty of that brand, I think, is demonstrated by our returning customers. Boot Beauty has been the one that's probably surprised us the most in terms of from very small beginnings. It has really shown sort of meteoric growth.

33:56 It's very things like TikTok friendly. I think it demonstrates great savings for the consumer. And when you're selling perfumes that maybe retail at £250 and we're selling them at £150 then the AOV on that brand, it's easy to get that up. But, know, we're excited about all the brands. But as I said, the one that's probably surprised us the most is Boot Beauty. Thank you very much. Moving on to some live questions. And we've got an investor who would like to know which channels is the Discount Dragon advert gonna air on? Discount Dragon will be on ITV one. We run-in the morning, so we run-in breakfast, but we're also gonna trial I think we've got four sort of peak regional slots going out this month.

34:54 So, what we do is ITV breaks down into a number of TV regions Scotland, North West, Time Teas. So what we're going to do is choose an area that allows us to test without going crazy on costs. We're also going to air in, I think, in a Martin Lewis show, which we think is absolutely prime for our audience. But we're going to test these. We're going to test them in a region, and then we can then analyse that data. And we've got a whole bunch of sort of data analysts that pour through this data, see what happens. And then if it works, which we think it will, then we can scale up accordingly. Perfect. Thank you. Next question. What are your target AOVs for all three brands?

35:38 Well, the target AOV is as high as possible. You know, we're we're we're sort of knocking on the door. If you start with Discount Dragon, we're we're sort of, you know, late 30s. We'd love to see that sort of, you know, probably sort of 40 pounds ish. NutriCircle, we've added a lot of new customers onto that brand, so we're about 34 pounds We'd like to see that edge up slightly, and that's a challenge that we've given to the management team. And BOOT Beauty, we're at sort of £37 We're moving more into selling more and more perfume. We've seen that's been a great line for us. I think the other week, we sold about six ninety perfumes at reasonable high value. We'd like to sort of see the team, you know, exceed 2,000 bottles of perfume a week. So, we can see that AOV ticking up naturally as we sell more high value products.

36:31 Thank you very much. And the next question is on AI, and it's a very simple one. How are you using AI in the business? We use AI across all areas of the business, but without letting it dominate the business. So, we use it in everything from the creation of adverts to trying to understand if a customer likes this, what else will they like, what can we bundle together. And we also use it in sort of customer care that allows us to sort of answer queries quicker and easier. Thank you. And the next question is, do you operate a customer referral incentive scheme? It's something that we continue to work on.

37:18 We've moved all brands onto the Shopify platform now, which means that we're not having to rely on our own tech, it means that they've got sort of hundreds of developers. So, it is something that is on our roadmap, and I would hope that it will be implemented in the sort of coming weeks if not a couple of months Fantastic and perhaps one last question here Could you describe your competitive landscape? Who are your main competitors? I mean, really, we're at the sort of bleeding edge of what we're doing, which is where we like to be. There was a competitor or there is a competitor on Discount Dragon in Europe called Moteatoes.

38:06 We know that they're quite successful. We now know that they've moved into profitability, so that gives us confidence in the brand. They were in The UK. We managed to beat them in The UK. So, people like Poundland, but I think Poundland, from their online perspective, is probably more focused on their retail outlet. But, you know, we can't sit on our laurels on the groceries and alcohol And NutriCircle, I think we are relatively unique. But again, that doesn't mean that there aren't people sort of, you know, trying and knocking on our door. And Beauty, there are, there's probably two or three smaller competitors. And our aim with that brand is really to work closer and closer with the manufacturers.

38:55 We're probably the largest brand in The UK in that sector. And I think, you know, our job now is to work closely with manufacturers and the brand owners to establish ourselves as the go to place for them to effectively get rid of their surplus and stop it going to landfill. That's great. Martin, Dan, thank you for addressing those questions from investors today. And, of course, the company can review all questions submitted today, and we will publish those responses on the Investor Me company platform. But Martin, before we redirect investors to provide you with their feedback, which is particularly important to the company, could I please ask you for a few closing comments? Yeah. Look. Thanks everybody for for tuning in, and and I appreciate that 09:30 after a bank holiday probably isn't the best time, so apologies for that.

39:47 But we're genuinely excited about this business. And as I touched on before, nobody likes losing money, but we had to go through that pain. We had to go through the investment period of it. You know, do we have enough cash? Yes, look, we're comfortable that we've got enough cash. We need to do a fundraise. Look, we've got the opportunity if we see growth that we have a credit line in place. So, we're not looking at any sort of further fundraising for the business. And, you know, ultimately, look as an investor, you get 15% off, so what's there not to like? Martin, Dan, thank you once again for updating investors today. Could I please ask investors not to close this session as you will now be automatically redirected to provide your feedback in order that the board can better understand your views and expectations?

40:38 This might only take a few moments to complete, and I'm sure will be greatly valued by the company. On behalf of the management team of HUDDLED GROUP PLC, we'd like to thank you for attending today's presentation, and good morning to you all.