Friday, 5 June 2015
The need for full, aligned and audited accounts
We have featured INeed before here. They have raised over £200k on Crowdcube on three occasions - the last two times lowering the amount required at the last minute to allow them over the line.
Their accounts to August 2014 have just been filed. They are a very good illustration why companies using this form of finance and government (aka taxpayers) support (EIS and SEIS) should be required to file full audited accounts - not the one page of 5 lines balance sheet figures with no notes.
INeed have a large debtors sum on their balance sheet - a sum of £95k which is not in the projections used to raise the last sum on Crowdcube; a raise well after this accounting period. This figure has no notes - in the pitch the figure listed is zero. INeed is one of the many Crowdcube funders who choose to use a totally different YE for their accounts and their financial projections - August and Decemeber in this case. This makes any kind of judgement almost impossible, which is what we assume is the aim.
Anyway we are sure that INeed will be back for more as their projections show them raising another £1.6m this year (year to December 2015). On losses amounting so far to £200k we wish them luck with that.