Monday, 25 June 2018

Administration report on Vibe Tickets reveals Massie's story is not accurate.

When someone states its time to move on and that they are only now looking to the future, you can be pretty sure the thing they have left behind is not quite as they described. So it is with Vibe Tickets and Luke Massie's phoenix operation.

The administration of Massie's original ticket re sale company, TheVibe Ltd, is now underway.

It reveals two important points. The sole reason TheVibe was placed into administration by Massie was the debt owed to HMRC and the company's inability to pay it. A debt of £57,000 had accrued since December 2017 - so the report states. We revealed this in our last post. It shows very poor management. And kicks many of Luke's published excuses into the long grass.

The second and possibly more revealing point, is to do with the pre pack. Massie has always claimed he didnt plan any of this. According to the administrators, Massie made an immediate offer to them to purchase the assets of the company for £30k. Now the company had been advertised as being for sale but Massie's offer was the only one. This £30k was pushed up to £40k on negotiation. Then out of the blue the largest investor in Thevibe, put in an offer for £150k. Does that strike you as odd? £30k to £150k is not a normal auction jump. Then to add to this oddity, Massie immediately (2 days) put in another offer for £160k. This was from a guy who has claimed continuously that he had no money - which is why he couldnt invest in Thevibe. Out of the blue he shook the money tree and £160k fell into his pocket. So having tried to buy it for £30k, he ended up spending £160k.

£160k would have been enough to clear the old company's immediate debts and problems with HMRC but Massie has always claimed he tried to raise this but failed. Hmmmm. There is TRYING and there is trying. 

Massie has also always claimed that he would be able to pay of creditors with the sale proceeds. Well that will not happen. Estimates are currently that trade creditors will see 78p - imagine what they would have seen if Massie had got away with his £30k offer - zero. Thank goodness someone had the sense to offer a sum that would clear most of the debts - and it wasnt Massie. Muck like his assertion that all Crowdcube shareholders have been satisfied, its another hollow one. 

Thursday, 21 June 2018

Anyone for a Brew - Crowdcube success fails to file accounts and open new outlets

The Tea Brew Pub took £180k off Crowdcube members back in 2015. The promise was to have 10 units open in four years and then franchise. The pot is looking pretty empty.

Holland, the founder, cant even manage to get a simple set of small company accounts together for the filing which was due in March of this year. That is really totally unacceptable and unprofessional. It is indicative of sort of trash Crowdcube promote - daily. 

Failing to open any units bar its first, is not great news for investors after 3 years but it's not the end of the world if there are good reasons. Failing to carry out your duties as a founding director of the company is simply unforgivable when you have taken people's money.   

Yet another Crowdcube moment. 

Some real, unspun figures for Vibe investors.

It now looks as though Luke Massie's new Vibe is being valued at well under £5m. On Crowdcube 2 years ago it was valued at £6m but investors who put in £600,000 in 2016 are going to get lucky, as Luke gifts them free shares in the new Vibe. HMRC who were owed £57,000 by the now defunct old Vibe and are the main reason it was put into administration by Massie, are waiting to hear if they will get anything. 

Vela Technologies plc, a previous investor, has announced a £200k investment in the new Vibe Group Holdings in exchange for a 4% holding - valuing VHGL at around £5m. VGHL owns 97% of the new Vibe Tickets and various other Massie businesses. The other 3% is earmarked for the old Crowdcube investors under a pledge made by Massie to this blog.

The £200k is part of a £700k round to launch the newco Vibe Tickets after Massie bought the old Co which he put into administration. We have now news on where the other £500k is coming from but the Vela investment is unconditional. Vela itself is not riding high on AIM and the mess with Vibe has certainly got some interesting comments from investors.

The numbers are difficult to be sure of, but it looks as though that 3% of Vibe Tickets will be worth considerably less than the £600,000 investors put in 2 years ago. 3% of £5m is only £150,000. Massie has chosen to give them 3% of Vibe Tickets not 3% of VHGL. As VGHL is worth £5m and most of that comes from its 97% holding in Vibe Tickets, we can assume that the latter is worth less than £5m. So claims that all his Crowdcube investors, who bought 10% of the old co for £600k in 2016, will get like for like shares in the newco do not stack up. But that is no surprise.

In a series of deals which he definitely did not arrange in advance, he has done rather well when his loyal investors have not. Pure luck. On the flip side, he is under no legal obligation to gift 3% of the new Vibe's shares, so one could see this as an act of the benevolent dictator or entrepreneur.

In all of this, it has always struck me as odd that Massie claims the whole problem was caused by Matt Ewing, the boss of Elite Telecom, who had invested £600k prior to the CC round, having too much control due to a SH Agreement which the young Massie had failed to understand. He goes and on and on about how this tied his hands and he couldnt operate the company - which is poppycock. All it did was prevent him from raising new cash without consultation. We know the real reason he put it into administration now that the first report has been filed - very poor management. But where in all of Massie's arguments are Vela Technologies - who were also a substantial investor in Vibe, putting on £400k, under the same SH Agreement. Vela is run by an ex stockbroker - so if he cant read and understand a simple SH Agreement, what hope have Crowdcube investors? Or indeed Luke Massie.

Meanwhile Vibe Tickets as a business seems to be viable so long as Luke remembers this time to pay the company's dues to PAYE and NI. His judgements are still highly questionable and his reasons given for the collapse of the old Vibe do not stand up to scrutiny. 

Tuesday, 19 June 2018

Will Energie be ready for its projected IPO this year?

Energie raised £600k on Crowdcube in 2016 at a valuation of £15m. According to the pitch, one aim was to IPO in 2018 with an EBITDA of £2.9m 

Their ultimate stated goal is to have over 1m club members and nearly 600 fitness clubs by 2023. The accounts show the membership numbers rose by 8% in the financial year from 104k to 113k. So a way to go. 

These accounts are not a lot of use - the company made a small loss on what appears to be a zero net revenue but its hard to tell. 

Anyway we will keep both eyes and ears open for the impending IPO announcement. Values mentioned in the Crowdcube pitch state that the management are looking for an annualised run rate EBITDA in 2018 of £4.6 million which would give the company a £46m valuation based on a multiple of 10. I dont think annualised used here is a fitness term. 

Well blow me down with a feather - that was an easy 3X ROI, eh. 

Videogram Worldwide is latest Crowdcube failure

Videogram Worldwide took £55,000 of Crowdcube investors in 2014. Later that year it took another £50k of investors on a platform called Crowd for Angels. Now it has filed for dissolution. 

Oddly the Crowdcube round has been taken down but its still mentioned on the C for A site. 

Accounts for YE August 17 show zero cash but a small profit, although we suspect this is mistake as the share cap account has reduced by a similar amount. They have refiled accounts before. We wrote about their joke accounts and their ridiculous pitch here many years ago. 

Really no idea what happened here. The only fact seems to be that this was never a business worth investing my socks in, let alone £1. 

Yet another Crowdcube moment. Happy losses. 

Mr Gripit knows a good deal when he sees one. Is Crowdcube just for suckers?

It's probably a good idea to strike whilst the iron is still hot - a good idea for whom though? Jordan Daykin is back on Crowdcube with a newco - whilst his Gripit Fixings fall off the wall.

Daykin certainly knows how to milk a run. His newco, VPS, which he bought for £5m is now overfunding on Crowdcube. There wasnt much made of Gripit in the pitch. Gripit has raised £4.1m in two rounds on the platform. Lastest accounts for YE Dec17 show losses of £1.8m for the company - a nine times increase on the latest projections. The figures suggest something odd - read on.

Should shareholders worry that he has now turned his energy and attention to being CEO of VPS - a totally unrelated business, in a totally different industry? Well time will tell. Gripit is due to deliver a profit of over £3m this year. Clearly it must be on track or he wouldnt go wondering off.

Debs Meaden is a SH in Gripit - via that wonderful comedy series Dragons Den. What does she think? No comment.

The accounts were moved, so this loss of £1.8m is for 17 months. Interestingly the first 5 months of this were included in the Crowdcube pitch as 'historic' data. However if you add the losses for 'previous 12 months' and the year Jan to Dec 2017, you get a projected loss of only £1m in total. Now it is impossible to know if the discrepancy (£800,000) occurred before the CC raise dated 03/17 or in the period after that to 12/17.

In the light of recent events with the platform and the fact that accounting dates were moved in June 2017, you might be highly suspicious that old tricks are being played here.

It is certainly more grist to the mill when considering Crowdcube's FCA licence.

Sunday, 17 June 2018

One we missed. Rateragent closes down after some very odd Crowdcube numbers induced investment.

This is the Crowdcube model in action. Rateragent made several claims and produced some very interesting numbers in their 2015 Crowdcube pitch. It managed to raise £134k from 133 people who really should be ashamed of themselves.  

The company then filed one set of accounts for 2015 and has filed nout since - being closed by compulsory strike off in December 2017. Con? Well you judge. Revenues went from £170k to £2.6m in 2 years - well of course they didnt but that is what Crowdcube agreed to print so they could claim their commission. We will never know if there were any revenues  - losses for 2015 were more than double the Crowdcube figure. Our ridiculous accounting system means that we cant learn much from their filings. 

We called this back in 2015 - here. 133 of you didnt listen. Crowdcube made around £6k, everyone else lost the lot.

Its worth noting before you read the final paragraph that the company's strapline is -

Rateragent - Where transparency is Key. 

In a final baffling twist, Rater Agent Reviews Ltd, with the same logo, is now operating here. This company was incorporated in August 2017. Joshua Paul Rayner is the sole director and shareholder and was until a few months ago a director of One Moment Ltd - the parent of the original Rateragent and the company Crowdcube investors put their money into. Ring any bells?

Yet another Crowdcube moment and groundhog day.