Saturday, 26 November 2016

Lovespace boxed in by large losses.

Lovespace stores things for you. Its just a shame that it doesnt seem able to store or handle its own numbers.

Lovespace has funded twice on Crowdcube once in 2014 when they raised £1.5m and then again just 5 months ago when they raised £700k. 

As you can guess, the gap between what was projected in 2014 and what happened in 2015 is large. Crowdcube projcetions showed losses for 2015 of just £327k. Actual losses filed are sitting at £1.7m.

No real surprise there you might say - this is Crowdcube we are talking we talking about after all.

What is slightly more worrying is that the raise completed in July this year, had a loss for the 2015 (YE December) of only £1.577m - so about £120k less than the figure filed a few days ago. The difference appears to be in expenses - the turnover is roughly the same and the depreciation is well below the predicted figure.

Its really not possible to tell exactly where this overspend occurred - Directors' salaries were £182k for the year up from £100k in 2014 but the Crowdcube projections do not break these down.

In the Crowdcube 2016 pitch, the 2015 figures are given as historic. So you might quite rightly expect them to be accurate - to say within a couple of thousand pounds. 

Well this is clearly not the case. If the company cannot get a fairly small set of accounts to add up 5 months after the YE, then the company is in trouble. We have written a few posts on Lovespace here 

Il Capo di Tutt'i Capi, Brett Akker, left a month ago.

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