Operational and Trading Update

Vulcan Two Group PLC

04 August 2026

 

4 August 2026

 Vulcan Two Group plc

(the "Company", the "Group" or "Vulcan Two")

Operational and trading update for the six months ended 30 June 2026

Significant progress in the period

Vulcan Two Group plc, the Company building a leading regulated UK ePharmacy through buy and build, is pleased to provide a trading update for the six months ended 30 June 2026.

Since completing the acquisitions of CloudRx, Hyperdrug and Webmed on 19 March 2026, the Company has been encouraged by the potential of the acquired businesses and the progress made in integrating operations across the Group. The acquired businesses provide the Group with exposure to a range of product categories, customer channels and revenue streams, creating a diversified platform from which to support future growth.

Operational update

At the time of completing the acquisitions, the Company set out a number of key initiatives to enable the creation of a scalable platform to support growth. Pleasingly, progress has been made on a number of these:

·	Fit out at the new 22,000 sq ft distribution facility in Leeds is underway and remains on target to be fully operational by year end.
·	The enterprise resource planning ("ERP") system is being integrated with operations and will facilitate efficient stock management and order fulfilment to enable same day or next day delivery.
·	Webmed's fulfilment has been transferred to CloudRx, rationalising purchasing, stockholding and despatch.
·	The development of a new web platform, the initial launch of which is expected before the end of Q3.
·	Good progress in transferring its CloudRx API driven B2B platform into the Hyperdrug veterinary business.
·	Key hires in the period, to build out the executive team including:
	-	Keith Butcher appointed as Chief Financial Officer, strengthening the Board with significant public markets and M&A experience;
	-	Declan Lismore as Chief Pharmacy Officer, a member of the Royal College of Pharmacy, a registered pharmacist with the GPhC with extensive experience of the ePharmacy sector; and
	-	A number of hires in the Company's sales and marketing teams to help drive future growth, several of which were hired ahead of plan.
·	TUPE consultation with all acquired employees to migrate all employment contracts to Vulcan Two Ltd with the objective of the complete consolidation of our workforce before year end.
·	The Board has also appointed a leading naming agency to help facilitate the creation of a unified brand to further support the growth potential of the Group. We expect to be able to announce the new brand within the next few weeks.

Trading update

Sales growth has been strong in the general healthcare sector, particularly in women's health and ADHD medications, supported by the Company's integrated digital prescription platform that provides clinical customers with a seamless prescription fulfilment solution.

·	As part of the initial integration process, the Company has rationalised a small number of lower-margin, higher credit-risk customers in the period. These clinics primarily operated in the weight-loss sector. Whilst weight-loss is an important category for the Company, the Directors do not intend to pursue volume growth at the expense of profitability and will be disciplined and selective in their pursuit of growth.
·	These actions are expected to reduce overall revenues near term but the Company's gross margin percentage is expected to improve.
	-	As a result, 85% of the Company's revenues are now derived from customers who pay at the point of order, providing strong cash conversion and minimal exposure to bad debts
·	Key hires made ahead of the initial plan and certain double running costs have meant operating costs will be higher in 2026, but they will reduce in 2027 as certain historical costs associated with the acquired businesses fall away.
·	The Company had a strong balance sheet at period end, with cash balances of approximately £6.0 million as at 30 June 2026.

Summary

Following the positive actions taken since completing the acquisitions, the Directors believe the Group now has a more diversified, sustainable and high-quality revenue base than it acquired, with a sales team that can capitalise on a growing pipeline of B2B opportunities, and an enhanced marketing team that will continue to optimise its direct-to-consumer offerings.

The Board remains highly confident in the Company's growth strategy and believes the Group is well positioned to capitalise on the opportunities in the UK ePharmacy market.

Michael Kraftman, Chief Executive Officer of Vulcan Two, commented: "Since the acquisitions on 19 March 2026, we have moved quickly to bring the three acquired businesses together onto a single unified platform. Our new central distribution facility in Leeds, which we expect to be operational later this year, together with our new ERP system and web technology will provide a strong platform for both organic growth and further acquisitions. We have strengthened the organisation with a number of key hires, both to support the transition from the founding teams and to build the capabilities required to scale the business. Finally, development of our new brand is nearing completion, and we expect to announce our new name in the next few weeks.

"Our commercial focus is on growing recurring, higher margin business. Today, more than 85% of our revenues are derived from customers who pay at the point of order, providing strong cash conversion and minimal exposure to bad debts.

"We operate in a large, fragmented and fast-growing market with strong structural tailwinds. With an integrated and scalable platform, an expanded stronger management team, and a disciplined approach to further acquisitions, Vulcan Two is well positioned to capitalise on the opportunity ahead."

The information contained within this Announcement is deemed by Vulcan Two Group plc to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 as it forms part of UK law by virtue of the European Union (Withdrawal) Act 2018 ("MAR").

For further information please contact:

Vulcan Two Group plc Michael Kraftman, Chief Executive Officer Brendan O'Brien, Chief Operating Officer Keith Butcher, Chief Financial Officer www.vulcantwo.com	Email: [e-mail]
Canaccord Genuity Limited (Nominated Adviser and Sole Broker) Simon Bridges / Harry Pardoe / Elizabeth Halley-Stott	Tel: [phone]
Alma Strategic Communications (Financial PR) Justine James / Sam Modlin / Will Merison	Email: [e-mail] Tel: [phone]

Notes to Editors

Vulcan Two Group plc (AIM:VUL) is creating the UK's leading regulated ePharmacy platform, through its disciplined buy-and-build strategy. Following the acquisitions of CloudRx, Webmed and Hyperdrug in March 2026, the Group has established a diversified, profitable platform spanning B2B prescription fulfilment and B2C digital pharmacy services, with a high proportion of recurring revenues and strong cash generation. Future growth is expected to be supported through the acquisition of complementary businesses, expansion into new sectors or markets, and investment in long-term assets.

The Group is led by an experienced management team with deep healthcare, eCommerce and buy-and-build expertise.

For more information, visit www.vulcantwo.com  

 

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