New Galexy have been consistent performers for Crowdcube - missing all of their 3 year projections handsomely. The pitch stated that the company aimed to be sold in 2018 for squillions.
Well the good news is the company has just posted its YE Oct 16 accounts and they show net profits of around £290k, up from £90k. The bad news for investors is that this figure was supposed to be over £2.6m. At this rate they may get sold by 2025.
Cash is looking tight, so we'd expect to see the company back for more from the trough soon. At a greatly increased valuation, of course.
I think you are being a little harsh here...They are making profits and it is increasing! Surely that is a good thing and if at some point they get sold then that also is great!
ReplyDeleteI think most investors realise that you are very unlikely to invest in a company which goes from an idea to billions in a couple of years. I always take a 10 year timeframe and if this keeps making money I will be a very happy investor / shareholder.
This must surely be one of the best Crowdcube ones to have invested in so far....It is making money, it is still solvent, It is increasing its profits etc etc
Look - this is not really how it works. Most companies make profits or if they dont, they eventually close. Most profitable companies in the SME sector make enough to pay the directors a dividend. For a company to be able to pay back these CC investors, they have to be making extraordinary profits or be in a sector where its not about profit but connection. This company is not in that game and has made very little progress. Sure 10 yrs is a sensible time frame but in 10 yrs this company will still me making small profits. It promised large ones on 3/4 years. I think you are being very gracious but a little naive.
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