Oriental Rugs of Bath is a noble enterprise but they predicted turnover of £1.5m for 2013/14 and achieved £105,000. That is a gap of over 1000% which is a new record for Crowdcube. Accounts for 2014/15 have just been filed and show a turnover of £121k with a small profit, their first, of £11k. One can assume that this turnover would have been predicted at more than the previous year's £1.5m. So that is two years in a row where the actual figures have missed the projections by more than a 1000%.
3 year projections ended in 2014 but profits for 2013/14 were projected to be £147k against actual losses of £5k.
We have still to see more than one company out of the 100+ that have funded through Crowdcube, achieve the predicted turnover and/or profits used to value and sell the equity to the Crowd. The Crowd are certainly being very very patient.
Hardy surprising. How in the Hell is a high street rug seller witha website going to pull in one and a half mill in revenues. It would have to become the Amazon of rug sellers.
ReplyDeleteThe point is that people were either stupid enough to invest in this company or were hoodwinked by Crowdcube's lack of due diligence when they published the projections. It is the same with 99.9% of the companies that fund on Crowdcube - hence this blog.
DeleteIndeed. You are correct. Thanks for the blog.
DeleteThank you Rob. Thank you!
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