Saturday, 5 August 2017

Innis and Gunn PRing their 2016 success

Innis and Gunn have released a glossy spin on their 2016 accounts, prior to their filing next month. The Crowdcube projections, produced when 2016 was almost complete, beg to differ.

Dont get us wrong, these are very good figures viewed on their own but they are not quite Carling. The way they have been fed to the press, you would expect I&G to have smashed their Crowdcube projections for 2016 - the ones used to raise the funding.

I&G raised £2.34m from almost 2000 investors at the end of 2016. The projections for that year, so mainly historic in nature, showed revenues of  over £15.1m and GP of £8.9m. Again dont forget that these were hardly projections as they were published on CC at the end of 2016. The accounts, now being trumpeted as an enormous success, show revenues of £14.3m or short by £800k and a GP of £8.5m or short £400k. Actually that's not bad certainly for a CC funded business but its still not reached targets which should have been, lets be honest, spot on. If a company with projections where 10/12ths of the year is historic, cant meet its figures, there is little hope for the rest of us.

You might ask why they chose GP as a measure instead of the NP, which is a far more important indicator. We will have to wait and see when the full accounts are filed. Certainly the margin held up well.

It's really far to early to see if the company's new direction will pay off. We were not impressed with the St Andrews unit.

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