We are trying to find some good news for Crowdcube's massive army of supporters.
It's proving very very difficult.
Hubbub raised £400k last year on the platform. Both their historic accounts, as published by Crowdcube and the infamous Crowdcube projections have proved to be fantasy.
You can sort of forgive the projections - hell you'd have to have been asleep for the past 5 years not to know that all CC projections are a joke.
However historic projections - what the pitch calls 'actuals' should be there or there abouts. Well not in this case.
Retained earnings on the CC pitch were stated at £(164,000) ie losses accumulated to YE July 2014. Yet the filed accounts at CH show this figure to be £(603,000) - that my friends is a truly whoppingly large difference.
Is there an explanation - Hmmm we have no idea. Any investors who know the answer please let us know. Of course the real accounts were not filed when Hubbub launched its Crowdcube pitch, so there was absolutely no way to verify this figure. Crowdcube clearly didnt bother to check it.
The projected profit/loss for the YE July 2015 was given by CC as a small loss of £1,500. But the actual losses for the year were £250,000 - which is pretty good by Crowdcube standards.
So the difference in the bottom line from the Crowdcube pitch to the real accounts stands at a handsome £230k.
This is yet another great example of why we are calling for all ECF campaigns to be forced to produce audited accounts for the past 12 months before they can pitch. And further, these must be full accounts not the ridiculous minimalist nonsense we see now. This is the only way to prevent this type of manipulation and give investors a real chance of making money. the evidence ios crystal clear that Crowdcube simply cannot be trysted to propduce correct 'actual' accounts.