Wednesday, 3 June 2015
A question for George Osborne
We found this Osborne quote on the Extremis Technology website -
''Extremis is a prime example of how SEIS is being harnessed to back innovation and as an export business in the engineering and manufacturing sector, Extremis is great example of what new business in the UK can achieve''.
Extremis are currently raising money on Crowdcube - having burned their intial SEIS raise. They value the company at £2m which is moderate for Crowdcube pitches. There seems to be no basis for this value, which is common for Crowdcube pitches.
When you start to look at what they have actually achieved, it's all a little flimsy. On the website they have a news section with various headlines about new projects; one in Nepal which looks promising. Clicking 'read more' just takes you to a page with the same headline and an article about the supply of 25 yet to be built shelters to the Dominican Rep - no mention of Nepal . Another headline about supplying shelters to Nepal leads to a page with just the headline repeated. No news just vague unsubstantiated headlines posted by the CEO. Scanning the web it appears that they are supplying 5 shelters to a school in Nepal; but only if they raise £260k on Crowdcube.
Accounts filed to January 14 show only 2 years trading, with little activity and losses of £130k. The CEO is involved with a raft of small t/o exploratory companies and would seem to be somewhat stretched. No doubt the ideas are workable and the concept laudable but the valuation makes a mockery of the whole principle of helping others - more like helping yourselves.
So our question for Mr Osborne is - Just what is it you think our money (via SEIS) has achieved with Extremis?