Monday, 25 January 2016

Luxtripper increases its valuation



Luxtripper is back on Crowdcube. Like so many returnees, it has managed to come back with a much increased valuation. This we are told is based on a better level of expectations for the future. It certainly is not based on the financial figures they have produced.

Below are the comparative figures for raise one, end 2014 and now   - so a gap in time of just over a year. The two sets do not have matching YE dates but the camparison still stands as an overall trend. Essentially the 2014 projections have been halved. The EBITDA has taken a much greater hit. Of course you dont get to see this comparison on the current Crowdcube pitch. It has been mentioned by some of the Crowd's more informed investors on the forum, so we are not the only ones to think this way.

It is a mystery how these projections can result in an increase in the company's value. Even by the rather crazy standards used on Crowdcube, a business is valued on a conbination of its likely exit EBITDA and turnover which are discounted for risk/time etc. So reducing the expected EBITDA by a factor of 4 now results in an increase in the company valuation.

That is definately a first; even for the magicians at Crowdcube.

This company may well go on to make investors a hat full of money; the investment on Crowdcube is going very well. I just wish they could come up with some sensible reasoning for the valuation.

                                                2014 Projections(Jan-Dec)               2015 Projections (Mar-Apr)





Turnover     EBITDA

Turnover EBITDA
2016
£8.77m £600k

£3.3m £(266k)
2017

£28.8m £4.59m

£14.98m £722k
2018


£56.4m
£9.9m


£30.3m
£2.39m

2 comments:

  1. Rob, by the way have you seen the bankruptcy of Hokkei? http://www.walesonline.co.uk/business/business-news/administrators-appointed-hokkei-takeaway-set-10773925

    ReplyDelete
  2. Thanks Rob, comparison table appreciated!

    ReplyDelete