Tuesday, 15 March 2016

Pull the other one

Pull'd raised £100k last year on Crowdcube. They are back again this time for £350k, which is double what they said they would need last year.

The 2015 projections have, as usual, been discarded as a load of old trotters and now the business is apparently worth just a fraction more than it was then - even though the numbers say it should be worth a lot less.

Of course existing shareholders will see their real investment value fall if this round is a success - given that it is twice the size they were told it would be only a year ago.

So here are the comparisons

2015 projected T/o         £291k actual £230k

2015 projected loss        £(54k) actual £(106k)

The most alarming figure is the GPM.

The company projected a figure of 69% rising to 70% but has come in with only 56%. This 56% is far closer to the actual 62% from the 2015 actual figures.  The difference in such a key metric is enormous and is hard to explain.  However being a company presenting on Crowdcube, the margin rockets back up to 70% in 2016/17/18. They dont have any evidence to prove this will happen. But who needs that? This is Crowdcube where the due diligence is robust. Although looks like someone has made a right pig's ear of this one.

The projections now end with a T/o of only £552k and a loss for all 4 years. In 2015 they painted a much happier picture with 2017 T/o of over £736k and a small profit.

So we ask again how is this company worth more than it was a year ago?


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