Square Pie, a restaurant 'chain', took out a Crowdcube bond for £655k in 2015. The bonds are the safe investments on this platform - aren't they?
In the documents presented to investors, which are declared verified by Crowdcube, the company said it would have 20 units operational by end 2017. Today at the back end of July 2017, they have 5 only - which is the same number they had when they promoted the bond in 2015. We warned you all about this company here
Instead of small profits the company is still making good losses - over £200k for YE Dec 2016. It's well backed by equity capital but the cash looks a little shy.
It also appears the bond, which was issued at 8% pa over 4 years, has an administration and interest charge for the YE Dec 2016 of £120,559. It's not clear who is paid this as the interest for the year to investors would be only ~ £52k.
Reviews reveal the potential problem - the pies are not very good. Their restaurants range from 2.5 to 4 out of 5.
It appears that the new frozen pies in Sainsburys, placed in April 2016 -
have gone down a storm and been delisted on the back of 3.1 ratings.
The company declare in the accounts that they will be back in 2017 for more gravy from the Crowdfunding train. Watch this space.