White Label Crowdfunding has reported profits of £352k YE April 17. That's an increase on all previous years of £352k.
White Label are associated with Crowdcube because they 'bought' a Crowdcube failure, UP Investments. We wrote about this odd deal here. It has now gone through.
What is odd is that prior to doing this deal, WL were doing nothing and UP were making heavy losses. So just how you can combine these two and create a £350k profit is a puzzle.
But the profit is sitting there in black and white and is backed up by a healthy trade debtors entry of over £300k.
Shareholders who gave their money to UP may be wondering what has happened to their value now that they own shares in WL (this was part of the deal). This again is odd as SH's in UP were advised by the founder that UP shares had no value when the sale went through. Clearly a company able to generate net profits of £350k from a standing start has some very considerable value.
But wait......... UP are late (only just) filing their accounts. With no shareholders apart from the profit making WL, why is it still open? Well you may remember that it was making heavy losses - which is why it failed (sorry sold). So what happened to those losses. We will just have to wait and see but our guess is no one is in a hurry to file anything at UP.