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Sunday 30 April 2017

April showers further dampen Crowdcube investors' hopes.


As if the cold wasnt bad enough - Crowdcube investors have been hit with more bad results.

A bunch of results for April - 

Ikee - raised money on Crowdcube in 2015. We had an email from a shareholder suggesting this one was a scam. As yet the company has no website and as far as we can see no product. Losses of £73k pretty well wipe them out but there is always hope. They were one of Crowdcube's incubated start ups, so maybe not. 

Angelberry - continue to make losses and seem unable to open any new outlets - which was the purpose of the Crowdcube investment. Projected profits for YE Jul 16 were £1.7m. The actual loss is only £10k but they are insolvent. How they are still trading is anyone's guess. Their website is down but they do seem to have outlets in some far flung places like UAE, SA and Mauritius. A shareholder told us that they hadn't heard from the company since March 2015. For those of you still unclear why we bang on about the projections these companies use with Crowdcube's blessing, here is a clip from their 2014 Crowdcube pitch  - 

The current valuation is based on a multiplier of 2.8 x Year 2 net profit. Based on our growth and profitability forecasts we expect an 8.4 x return of investment for investors if we exit in Q1 of 2017. 

Holly and Beau - Another one that is insolvent. Filed losses of over £90k on a projected turnover of just £110k mean that something has gone wrong here. 

Lumo  - smaller losses than predicted but have not raised the new debt they projected. Could be OK or could be like other Crowdcube businesses that have exceeded their projections through lack of activity. When you are selling a Polo shirt for £60, the latter option looks more likely.

Jam Vehicles, Ethos Global, Alquity UK and Little Brew, all look lost as filed accounts now very overdue. 

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