Friday, 4 March 2016

Is it a Wrap?


Wrap it Up raised £760k on Crowdcube only 7 months ago. The company was valued at over £6m.

Accounts to YE Dec 2015 are now filed - very early which is always helpful.

They are quite tricky these ones. We wrote about this company when they were pitching

  - http://fantasyequitycrowdfunding.blogspot.co.uk/search?q=wrap+it+up+

As far as we can tell they made a small loss for the year. The Crowdcube projections had them making a profit of £235k.

What is more worrying, for them at any rate, is the cash position. The Crowdcube projections show cash at the year end of £136k. Its a cash business so there are no debtors as such.

In the real world the cash position filed stands at £600  - yes six hundred pounds. So out by a factor of 226 times.

The real position is quite hard to fathom as there are odd debtor entries in current assets, for monies not due for 12 months and an accrued income with no explanation. Best guess is that the real situation is they have current liabilities of around £70k and have less than £1k to pay to cover them.

Of course in the projections they had current asset/liability cover at this time of 3 times. Given that this projection was based on them raising only £400k, you have to wonder what's happened.

Due to the crazy accounting rules we have here, we may never know.

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