REG - Huddled Group PLC - Wicked Vision invests in Let’s Explore Limited

HuddledAnnouncement

10/05/2024 18:30

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RNS Number : 0602O  Huddled Group PLC  10 May 2024

10 May 2024

 

Huddled Group plc

(the "Company" or the "Group")

Wicked Vision invests in Let's Explore Limited

Huddled Group plc (AIM:HUD), the Group focused on building a portfolio of
e-commerce brands, is pleased to announce it has reached an agreement with
Wicked Vision Limited ("Wicked"), the distributor of its Home Based VR
products, to invest in Let's Explore Limited.

The agreement will see a dedicated team from the Wicked business step in to
manage and grow the Let's Explore business. As the distributor, Wicked has an
in depth understanding of the commercial positioning and sell-through of the
products. This will free up senior management time at Huddled Group to focus
on the expansion of Discount Dragon and Food Circle.

In return for Wicked transferring their wholesale margin into the business,
and taking over day-to-day control, they will be allocated an initial 25%
stake in Let's Explore Limited for nominal value and will receive an
additional 25% share, taking them to 50% in total, once Huddled have been
repaid the value of the working capital left in the business, being circa
£400,000.  In the year ended 31 December 2022, the Let's Explore business
made a net loss of £370,000.

Bringing the product and sales arm together will, we believe, deliver
significant financial and operational synergies, with clear margin benefits of
bringing the wholesale margin into the business.

Following a number of successful global trials the new team will continue to
sell Vodiac through a variety of teleshopping channels, Amazon, as well as
through its retail network, including Inmotion, Dixons, Rymans, Hamleys, WH
Smiths in the UK, along with TJ Maxx, FAO Schwarz in the USA.

The Let's Explore range, which has to date primarily been sold through Amazon
as well as direct to the consumer will now also be sold through the Wicked
Vision distributor network on a global basis.

The existing stock from Q4 last year, some 14,000 units is anticipated to be
sold into retail channels under Wicked's management.

The business will be headed up by David Strang, CEO and founder of Wicked
Vision Limited, he will assume the role of Managing Director of Let's Explore
Limited, he will be joined by an experienced management and sales team,
including Kenny Fasan who will also join the board. Martin Higginson, David
Marks, and Dan Wortley will remain on the board as Directors representing the
interest of Huddled Group plc.

Martin Higginson, Chief Executive Officer of Huddled Group PLC said:

"This agreement delivers significant financial synergies, which we believe
will not only boost margins, but allow the business to make a profitable
contribution to the Group and fulfil the true potential of the Let's Explore
range. We believe this deal will enable the Group to benefit from the further
growth of Let's Explore, whilst freeing up the Huddled team to focus on the
growth potential of our FMCG e-commerce businesses.

"We have developed a fantastic range of immersive products, that now need
selling into the retail channels. David Strang and his team have over 25
years' experience selling products into these channels, they have clearly
demonstrated with Vodiac their ability to achieve significant sales and as
such this is, in my opinion, the perfect marriage."

David Strang, CEO and founder of Wicked Vision Limited, said:

"This is an exciting opportunity for us, we've already seen the potential of
the VR products through Vodiac, as a distributor. To now have the opportunity
to be a part of the entire supply chain, as well as the Let's Explore range,
allows us to build on our success to date.

"Our sales team are thrilled to have the entire range in their portfolio.
Initial conversations have been extremely encouraging and I am very confident
as to the future of this product range, and our ability to build on the
opportunity for Let's Explore Limited."

- Ends -

 

 Enquiries:

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

 Huddled Group plc                                    investors@huddled.com

 Martin Higginson

 David Marks

 Daniel Wortley

 Zeus (Nominated Adviser and Sole Broker)             Tel + 44 (0) 203 829 5000

 Nick Cowles, James Hornigold, Alex Campbell-Harris   (Investment Banking)

 Dominic King                                         (Corporate Broking)

 Alma Strategic Communications (Financial PR)         huddled@almastrategic.com

 Rebecca Sanders-Hewett

 Sam Modlin

 Kieran Breheny

 

 

 

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