Tuesday, 20 October 2015

NewGalexy Services file £300k loss

NewGalexy raised money on Crowdcube in 2014 - 122 investors putting in over £200k. According to the pitch, this money was ''to complete'' a total raise of £650,000. From the AR, this other money seems not to have materialised.  Total capital raised to date is only £350,000. The company had access to various Scottish enterprise grants which maybe part of the difference but then these should have limited the reported losses. What is more, the declared historic share capital of the company published in the Crowdcube pitch is totally wrong at £188k.

These major discrepancies aside, they have joined the ever increasing band of companies that have filed accounts which bear no resemblance to the projections used to sell the equity - the projections which were so carefully and thoughtfully vetted by the Crowdcube out to lunch department.

So NewGalexy at YE Oct 2014 (the accounts were several months late) show a  pretty sorry picture. Projected profits for this period were over £200k, actual losses were £290k. The company has no cash and owes stacks. It is being kept afloat by the directors.

We wish we could bring you some good news of Crowdcube pitches that have at the very least managed to get close to their projections but we cant. Maybe that is a function of the Crowdcube model  - like night following day.

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