Berrywhite took £293k off Crowdcube investors in 2014 at a value of £5m. Now they are back again for another £150k at a pre money value of £2.7m.
Well at least that bit is open and honest. Oh wait, no it's not, we had to dig around to find that they had previously been on Crowdcube and at that value - its not mentioned in the pitch. Whats makes it worth £2.7m is highly questionable - it certainly is not the managements skills at sales projections!
So what else is not mentioned?
All the usual really - previous projections had the company making net profits of £1.675m for YE Dec16. They actually filed a loss of £220k. And so it goes on. Despite what they say in the current pitch, we hazard a guess that the 2016/17 turnover was around £600k when it was projected to be over £7m. So why would anyone believe anything they say?
Nothing really wrong with the product or the team. It's just that despite all the hype the former doesnt really sell very well. It would help if one could rely on the information they give out or have any confidence that Crowdcube bother to check it.
And do they think the 6p Sugar Tax is going to make that much difference? We dont.
And do they think the 6p Sugar Tax is going to make that much difference? We dont.
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