Thursday, 1 October 2015
Kammerlings accounts are proof that ECF is not possible under this system.
So Kammerlings - one of Crowdcube's major 'successes' - has just filed accounts to YE Dec 2014. More losses which make an accumulated loss of £500k since investors were relieved of their money.
Kammerlings sell a liquor branded Kamm and Sons - they have raised money on Crowdcube at least twice and we believe tried again this year but failed. As with most Crowdcube pitches they have never come close to their projected turnover or profit figures since taking investors money.
What is interesting in this filing is the use of Kammerlings Investments Holdings to cushion the apparent disastrous situation in the trading company. KIH have also just filed accounts which show a healthy balance sheet of £663,000. Looking further into this, the company has 'investments' listed in its fixed assets of £662,000 or near enough the balance sheet value. So where is this investment?
This £662,000 is owed by Kammerlings to KIH and is listed in long term debts on their balance sheet. KIH own 100% of the trading company Kammerlings and Crowdcube investors hold shares in KIH not the trading arm. However this £662,000 no longer exists - Kammerlings have a balance sheet value of minus £635,000 - made from annual losses. The investment in real terms has been burned and both companies are insolvent.
As they do not look likely to be able to trade out of this mess, this accounting looks liberal at best. Just more of the sort of shenanigans that ECF encourages.