Tuesday, 9 February 2016

Crowdcube pitch has £3.5m fixed assets

At a time when Crowdcube are defending their credibility against some very serious accusations, does it come as any surprise to find pitches on the platform with odd accounts?

NO.

Left Shoe Co has £3.5m on its balance sheet as a fixed asset. When asked what this was, the CEO stated that it was 'mainly' made up of good will from the consolidation of 3 operating companies.

Well most of us know that goodwill is not a fixed asset - its an intangible asset and is also highly dubious in value in a balance sheet for a such a small company. It also appears to be being amortised at a very slow rate given that its goodwill.

All very odd but no doubt given the OK by the Crowdcube OTL Dept.

This industry needs a more professional approach  - clearly.

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