Friday, 10 November 2017

Red Advertising aka Recruitive Software file yet more heavy losses


The Old Dog and Crowdcube legend, Red Advertising, has filed accounts to YE May 2017 with another heavy loss of £300k - giving it a running loss total of £2.3m. 


You have to applaud the sheer determination of the founder but still wonder whether investors would not rather wipe the slate the clean and get on with claiming their loss relief. Their Crowdcube projections had them making over £2m and that was last year. 

Red have raised capital on Crowdcube numerous times, each time with tales of greatness and forbidden fruits. Yet they still keep filing losses. They have been technically insolvent for around a year and even the latest small raise in July wont change that. In their 5 years, they have covered this blog with numerous entries, seen a few name changes, oiled a steadily revolving Directors' door and held a plethora of Crowdcube Awards. 

They started with Crowdcube in 2012 and completed their 4th success in 2014, totalling around £1m. Since then even Crowdcube punters have lost interest and they have sought funding overseas. 

Who knows, they might even make it. It would certainly be one worth writing up if they do. 

Our call back in 2012 was stay clear.   

2 comments:

  1. Yeah, it’s always hard to tell where over -optimism ends and dishonesty begins.

    ReplyDelete
  2. One 'hilarious' aspect is that when they raised on Crowdcube in 2012 it was not EIS eligible as they used an esoteric share structure, and said at the time that EIS was irrelevant anyway as they were potentially close to an exit and expected this to happen within three years thus negating any EIS benefits.

    ReplyDelete