Personal Development Bureau funded via Crowdcube. They also tried to access more cash via Bank to the Future but that site is such a lame duck the pitch bombed.
They have just field accounts for YE March 2015. According to the pitch they presented on Crowdcube, this year saw them make a £445,000 profit on a £1.1m turnover. The real figures, as ever, are somewhat different.
PDB made a small loss of £6,000 - which is a huge success on previous years. The company has been technically insolvent for some years. 68 investors put money into this sham - when will people learn.
Can i ask you (being totally ignorant) what are you actually saying?
ReplyDeletethat in their financials on crowdcube they stated they made a profit of 445,000 and used this as a basis to woo investors.
But in reality they did not? Is it that simple?
Surely that cannot be legal?
Sorry maybe that was a bit confusing in the way i phrased it - their projections showed a profit of £445k - these projections were used to sell punters equity on the Crowdcube platform. They actually made a loss of £6,000 for that year. This is very very common - infact we have to date found only one solitary company that raised money on Crowdcube that got even close to the projected profits used to sell the equity. It is not illegal but it is in our opinion very stupid and will not in the long run build sustainable businesses. Crowdcube encourage these ridiculous projections to sex up the offer and allow higher valuations. However they have been careful to make it clear that the projections are not vetted by them even though the operation of the site and its completions is how they make their money.
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