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That is a possible option, yes. It depends on how long said discussions take to turn into a deal and/or how the hydrogen opportunity is now progressed further. I don't think HEX really needs much in the way of additional funding for the helium, if at all, and if they do, it should be for acceleration. Where it could get very interesting is if they target the next drill to test the hydrogen opportunity as well. This may be why it hasn't been announced yet. That might justify more funding, but as you say, it may come from another source, and they are in a great place valuation-wise vs CAPEX needs.

This part of the 13th October RNS has been playing on my mind ever since.

"The Board are in discussions with multiple industrial gas companies regarding potential offtake contracts. The Company will update the market accordingly once a contract has been signed with the selected partner."

Selected partner indicates choice and therefore competition, or am I just being too optimistic? Otherwise, it would surely just say once a deal has been signed or something similar.

Also, in terms of funding etc, I have wondered whether Bo and his team would entertaint a pre-payment deal to unlock cash to fast track their wells. if indeed that is necessary.

Note also the CEO's comment on the THG move in the presentation Q&A that they were moving into the next 4 weeks. So, given the fact that we are now two weeks into this, I don't expect the next brand move to be very far away.

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I think Huddled's approach to Q4 is very much one of caution because pre-THG, there remain several unknowns. Boop's successful move begins the process of unburdening the business. They also need sufficient stock, but if they get it right, then Q4 is capable of delivering a very good result. Currently, I like your 6m figure as a barometer, and it would be a great result vs the current EV.

I agree wholeheartedly with your last post. Like many, I have learnt in life that if I can't do something well enough myself, then be intelligent and humble enough to go and find someone who can. I think Martin has chosen very wisely with his CEO appointment.

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Hi Bobby,

My notes and responses to your post below.

On operational profitability, "We expect the Group to be operationally profitable before head office costs in September 2025." It is my understanding that DD and NC were still carrying Boop in Sept but performed strongly enough to deliver group operational profitability. A sign of how far they have come since the focus on basket and returning customers kicked in during Q2. Getting Boop moved into THG enables it to take advantage of the later order cut-offs (11 pm) and further its relationships with THG customers and brands. Once Boop starts contributing, the cash flow outlook should improve considerably, and Q4 is a perfect time to do this. Fully operational at THG just 2 weeks into Q4 is great news. So don't write off full group profitability in Q4 just yet be it I want to see the other two brands move over just as seamlessly.

I posted the other day on X that Boop had restocked its perfume range. On a number of items, Boop is already the cheapest when compared on Pricerunner. But with THG, they will also gain speed because a number of the smaller players they are compared against only offer a 4 pm cut-off. Even Boots has a 10 pm cut-off. Not many are looking into these sorts of factors, but then even the whole THG move is currently being ignored.

Management feedback I have had is that DD is currently all about customer retention against what is a solid existing customer base. Driven by an excellent CRM system that enables targeted offers.

NC is looking to maintain a stable absolute margin but also add new customers with more marketing. Remember, marketing is included as a cost at each subsidiary level. So if they are operationally profitable, then their current marketing spend is covered.

Boop is all about more of the right stock, both in the short term for Q4, but also to enable the brand to grow its customer base.

Q4 results will give us much better insight into cash levels. If they can reach full profitability, then their whole world changes, along with I trust the market's perception. But I remain open-minded about future needs for the business until we know how Q4 performed.

Again, my take on things is that once bedded into THG, the deal-making should rise substantially. Where that comes from exactly, I don't know, but there is confidence it will. I also think the H&B relationship (8 items stocked) will grow once NC is in THG.

I am as confident as I can be that the THG deal is about much more than a warehouse arrangement. Huddled can offer these suppliers a very easy way out on redundant/slow-moving stock that is fully reportable for ESG purposes. Some may still want to take the easy way out and ship it off to Africa for a small fee. But enough should come through to take Huddled to the next level, and then let's see.

I have no concerns over the balance sheet if cash flow is coming through.

I also like the fact that this update seems to have been kept under wraps, and I look forward to hearing what our American cheerleader has to say about this update.

I added yesterday because I felt HEX was at a key support point and should move up to at least the 33-35p range once first production is underway. So it felt like a safe position to add. Now I am currently still able to buy at 26.75p, but have the prospect of helium 3 and hydrogen in the drilled wells at Rudyard. Meaning I have my first production buffer still in play, but with blue sky potential thrown in for free and then the prospect of further growth through more wells, etc, in the coming months. Said wells may now have helium 3/hydrogen in play through testing etc.

Push past that 35p range, and then I might start to say OK, this new update is beginning to be factored in. But not if Inez #1 then goes on to deliver more gas and first production opens up a new well programme for 2026. Then we have to reset once more.

It's cheap, so I am a LT buyer again of what was already my largest position at 24p a share.

Funding may be getting a little tight, but production is very close now. I never say never, but if they do require funds, it cannot be a large sum vs current MC (unless someone is being let in) because they shouldn't need it. Given that position, I don't see it as a means for me not to add. I can play clever, but the market could also easily get away from me while I dawdle.

My view only DYOR, etc, etc.

Inside the final stretch, but the prize just became a lot larger.

Ignore the noise and follow your own path.

My comments on the chart position still apply and may well add further support to the possibility of a strong run here. After all, the market has a barometer for what happens when helium 3 is discovered. But it now needs to factor in potentially better helium 3 grades, hydrogen, near-term production with completed CAPEX and, dare I say, a far more proactive management team.

I will be bold and say that the 24p level definitely holds.

Well, despite all the noise, I've taken another 100k shares at 24.15p.

On the weekly chart, HEX has flat refused to finish below 24p since it broke through that marker back in mid June. Its best effort was off the back of the perceived to be poor Inez #1 results.

We've now pulled back to that 24p line purely due to a slightly extended plant completion date. Could it go lower in the coming days? Possibly. But was the news really negative? I don't believe so.

If anything, it finally gave us clear sight of the finish line whilst also confirming that the PSA is fully tested and ready to go once completed. That, in my eyes, is a de-risking development and so overall positive.

We also received reassurance about offtakes following a lengthy period of silence on this subject. Again, that is overall positive.

In addition, we were told that a return to Inez #1 is not only going to happen but will likely still come this year. That drill opens up the possibility of Inez #1 turning into the drill every hoped it would be and possibly even more. Again overall positive.

All these developments lie directly ahead of us.

In the meantime, is there time for a dip lower? Yes. But what would be the justification for the market doing so, given what we know about previous attempts at this 24p level and what I have just explained above? It is a perceived delay, but one that came with more concrete progress attached. So the pullback seen to date (assuming HEX keeps to its revised schedule) feels enough from where I am sitting. Hence why I added.

When considering any perceived drop in SKUs at DD and Boop, it is worth noting that with 233 SKUs today, Nutricircle is the largest it has ever been. To place that in context, it had 148 SKUs at the end of July (immediately before it started delivering operational profitability in August). So its lines are up 57% since then, and this is the most profitable brand to date.

Today DD is at 625, which is down from an early Sept peak of 832 (5th Sept), but still 23% up from where it was at the end of July (509). Yes, they are likely getting ready to move, but it is also still about context. Plus those +200 missing SKUs sold off during Sept, which is supportive of very good Sept trading for DD.

Boop is down to 211, which is markedly down from the end of July (266) and indeed most days since. This will be one I will be watching closely in the coming days/weeks. Post THG move, we may see a step change in stock levels. But a solid fragrance range that is selling down can counter this because, at the end of the day, it is not about how much stock you have but the value you sell it at.

Yes, there are an initial 8 products, but once Nutricircle is bedded in at THG, I am led to believe this number should rise. After all, when they moved into THG, H&B transferred 8,500 SKUs.

Worth noting also that Boop has started to replenish its fragrance line. Now back up to 49 SKUs, having dropped to 28 last week. Boop doesn't carry large quantities of each fragrance, but it is still nice to see the big-ticket Tom Ford items sold out. At up to £224 per bottle, they represent c. 6x the average order but just a fraction of the processing cost. That is a big positive for me as we approach the Christmas selling period.

These are only small developments in the grand scheme of things, but they help demonstrate the continued upward trajectory Huddled is on despite the market's current indifference. Still much work to do of course.

From the interim presentation Q&A,

"We're close to taking the first delivery of product from a well-known wellness retailer in the UK."

A quick review of the Nutricircle website will tell you that they started listing Holland and Barrett vitamins and other goods last week.

H&B is based at THG. We have been told previously that products acquired there do not need to move one inch to come under HUD's control. That means zero transport costs.

Nutricircle already has a great repeat customer base. A new customer drive is also starting this quarter. Lots to like about this brand and how it can help drive Huddled to full profitability.

From where I am sitting, the #HEX chart looks like it is gathering itself for a move north.

The company couldn't be clearer that first gas production is coming. We can argue over the exactness of that statement as much as we like, but what does it truly matter? Early revenues are coming, and they enable Bo and the team to go much harder on this resource, Ingomar and any other ideas they are yet to share with investors. A bit more patience is required, but this is a great time to be a HEX shareholder and what I like even more is that much of the froth and rampiness in the stock has dissipated. That bodes well.

I see US based production as a massive plus for HEX. So long as Trump is around home grown product should remain highly desirable because it enables future unknown decisions from what is an unpredictable administration to be de-risked.

I too would like to see some long term offtakes in place but if the spot market is throwing out premiums when they start up production (which my research tells me it currently is) then I have no problem with that to begin with. That said Bo did has stated several times that offtake discussions were ongoing and I believe indicated that they would be in place by the time first production lands.

I read the views on valuation post first production/first 3-4 wells but I do think what is being forgotten here is the de-risking point that even initial production brings.

Once cash flows are established then the future wells become more certain. It is clear already that Rudyard can handle more wells. It is also clear enough that Ingomar is worth revisiting. Once cash flows remove the remaining uncertainty over funding this future then it can begin to be factored in. It simply is t enough in my view to judge the valusäe of the first 4 wells on a stand alone basis. There is too much growth to be had from them which won’t be ignored so long as HEX management explains their plans and potential properly.

Just to clarify, we are talking c. £600k per half-year in head office costs. So £300k per quarter, and as of Sep,t they have eaten into that to a degree.

One other thing worth noting, which I don't think the market appreciates, is that whilst admin costs were up £400k vs the same period last year, all of this and more was at the subsidiary level. So by moving the brands into operational profitability, Huddled has covered all of this gain. A comparison between note 3 this year and last interims will demonstrate this. That helps demonstrate the progress made on profitability which should now further improve as we move forward.

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Here also are my notes on what Mike answered on the question of lower Q3 revenues vs Q2.

• Focus was on profitable growth at the expense of some sales. "We now have that platform, so I think in Q4 you will see that improving as we move through (Q4). We continue to be focused on basket margin. Profit per order or basket margin as we call it is just so important." We will now focus our time on returning customers (at DD).

In terms of Boop stock, as you say, there was messaging in the meeting around "big deals" being signed in Cannes. Some deals have already been done with THG clients, and they expect those to grow once they are onboarded to THG. Mike also talked about expectations to be working with THG's "great brands" once they are at THG. I also heard them say in the call that they would be looking to announce big deals soon.

They also explained that Boop will be most impacted by the THG move, 11 pm cut-offs being one of them.

Growth doesn't just need to be revenue-driven, and an institutional investor worth his salt should appreciate that. I don't expect Q4 to be a big revenue jump, but I am open to it occurring. What I do now expect is for the group to move even further into operational profitability and possibly deliver full profitability for the quarter. That for me would be a major milestone and help begin a recovery in the share price if it doesn't come beforehand.

Moving forward, Huddled needs to get its communication sorted out. Missing out the Q2 update because it didn't suit them doesn't fool anyone, and I have made that clear in my communications. Investors deserve the full picture, and the actions taken since Mike came on board are valid and have been effective. So they could have found a way to bring investors with them. Simply waiting until better news is available is disrespectful, lowers trust and always gets found out in the end. As does selective reporting. Investors deserved a better breakdown of the business metrics for Q3. Just like we got last year. Again, I have raised this with management, and I believe it was appreciated.

That all said, there is a very solid business here which has made really good progress and now seems to have a plan to get us to where we wanted to be this year.

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@Bobbyaxelrod,

My notes, quotes and thoughts from the presentation, if it helps you.

The messaging in the interims was that they expected the group to be operationally profitable, which does not mean all 3 brands individually. My understanding is that DD and NC are there, but Boop (understandably) still needs more work.

Cash position was not stated, but we know that cash stood at £552k at 30th June, and they had a £1.5m (minus expenses) injection in early July.

That says to me cash stood at c. £2m minus whatever losses have been incurred since. DD and NC were operationally profitable in Aug and Sept. The group was operationally profitable in Sept. At that point, they begin eating into what I believe is c. £600k of head office costs based on the indications from the FD in the Q&A. Everyone can make their own forecasts, but I'd be surprised if it is much more than £600k in Q3 (£300k overheads and £300k losses).

That would mean that they enter Q4 with c. £1.4m (minus move costs) and a starting point of under £300k in overheads to cover. It is important to appreciate that DD and NC both also entered operational profitability in the quietest trading month of the year (August). That bodes well for the coming months and beyond.

In the call, Martin said, "Long way down the track in terms of getting moved." Mike Askely stated, "The next 4 weeks is going to see us move." Again, my understanding is that each brand will move separately, possibly over different weekends/evenings. So it's not about a set point in time. The key is getting the move right and avoiding a drop-off in customer service.

Q3 revenues expected to be c. £4.9m. H1 figures demonstrate that Q2 was around £5.08m. So, a slight dip, but the key takeaway was that they have reset the business to ensure that revenues are profitable moving forward. This work has now been completed at DD and NC. Having done that, they were clear that they will now turn their attention back to growth in DD and NC and stated they are confident that the focus on a returning customer base will counter the new customer influx, such that absolute margin will remain fairly constant even whilst growing revenues.

At Boop, it is about having the right stock and enough of it. Being only 1 year old, they have not built up the relationships like they have at DD and NC, but they are on it. This work will continue in Q4. Here is my paraphrasing of what Mike said about Boop.

"Boop is only a year old. We need to build a base (along the same lines as seen at DD and NC). Once we have built that base, we will be well set for a successful 2026."

I do regular AI-driven analysis of the US helium market. This is the latest projection.

"$500–$600 per Mcf

Helium prices in the US for Q4 2025 are projected to range from $500 to $600 per Mcf for Grade-A helium in bulk/contract markets. This reflects ongoing supply shortages, declining US production, and rising demand from semiconductors, healthcare, and aerospace. Spot prices may hit $1,000+ per Mcf in tight markets. New supply projects won't ease constraints until 2026. Prices vary by purity and terms."

This is the shortened version. In essence, it is not a bad call to be selling into the spot market in Q4, although some longer-term contracts would give more peace of mind. For reference, HEX guidance is currently based on $500/Mcf, so the above is very healthy.

It is a very good time to be a US producer of helium, and that fact should demand a valuation premium once production is online and demonstrating stable revenues.

You are singling out the CEO's holding of 1.2% (which I don't consider low at all) but failing to appreciate that the entire BOD owns 8.3% of the outstanding shares and recently converted £100,000 of options at 6p when the share price was just 4.85p. I would say that is bullish, and 8.3% is a lot more than many BODs hold.

POW recently sold its remaining stake in GMET for 55p because it had delivered a substantial return, and it wanted to invest the funds in new projects. That is what companies do every day. GMET shares now trade at 113p. The assumption is that these BODs always know what they are doing, which isn't correct. Go tell that to POW holders.

What is correct is that these companies have their own goals and strategies, which aren't always aligned with maximising the return on an individual investment. Jangada have decided its funds should be deployed in other projects. Perhaps they see those projects delivering stronger returns over the next few years. I don't know. But to assume they know that they are doing is placing them on a pedestal that they haven't yet earned.

In terms of graphite projects, having the ability to get funding, you are right that there are other graphite projects out there that are later stage than BRES, but are struggling to close finance. There are also graphite companies that have failed. But there are also only two graphite projects in the whole world that have received DFC funding. Orom Cross and Balama. There is a very good reason for that, and it comes down to quality and, in Balama's case, being operational.

The graphite industry has struggled in recent years, but resource ownership wasn't being openly weaponised for most of that, and the USA and EU were asleep to what their adversaries were doing. That has now changed and helped spark a rush for resources, which in turn has ignited a commodities bull market. So the past is the past, and in the immediate future, whilst these markets recover, the very highest quality projects will be served, will receive attention and will be financed. Orom Cross is most definitely one of them because it is world-class.