Monday, 14 December 2015

Newgalexy Services files accounts 7 months early

Newgalexy Services raised over £200k on Crowdcube back in 2014.

As part of this raise the pitch stated that the company had secured £550k in finance through equity and grants. The Crowdcube pitch would make this figure up to the required £650k.

Somewhere these figures do not add up. Further grants assumed seem to have dried up  - possibly as they were reliant on KPIs that were not met. Total equity investment is static at £360k.

Anyway the latest accounts, filed 7 months early, for YE October 2015 show revenues of £835k against projected revenues of £3.38m. Some gap.

The good news for investors is that due to stringent cost cutting, the company has managed to make a profit. Ok so its only £90k against a projected profit for the year of £1m but we all understand that no one pays any attention to projections.

Why they have chosen to file so early is a mystery but we may be about to see them reappear for a new equity raise.  It makes you wonder if the company had had the balls to use projections closer to their real achievements, whether they would have raised the Crowdcube money. Investors have to hope they can continue on their now slow progress to the promised exit.

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