Tuesday, 17 May 2016

Crowdcube figures are not accurate

Here is yet another example of the information supplied by Crowdcube being inaccurate.

Beara Beara raised £203k at the beginning of 2015.

In the historic accounts given by Crowdcube for YE September 2014, they claimed that the balance sheet had retained earnings of £83,023. This was generated by a year's profit of over £73k plus the previous years profit. 

Since they raised their money, they have filed the actual accounts for this period with CH. This shows a retained earnings figure of only £34,614 - so well under half the claimed figure. So one assumes the profit figure was also wrong. Small company accounts don't allow confirmation but its seems unlikely that a small business just funded would pay out dividends??

The overall state of the balance sheet was around half what they had declared it to be only months earlier.

This is no criticism of the business per se but it does call into question Crowdcube's ability to get the right information to potential investors. They say they are trying but the evidence does not show this.


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