Sunday, 3 May 2015
Yet another Crowdcube funded business misses its projections...again.
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.