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Wednesday, 4 May 2016

Lovespace boxes may have dodgy bottoms


Lovespace smashed their first raise on Crowdcube in 2014

They raised over £1.5m against an ask of just £600k.

Now they are back for more - only this amount was not scheduled the last time they appeared.

The good news for Crowdcube investors is that the value of the company has increased almost 4 times in just over a year. 

The bad news for Crowdcube investors is that this value is total myth. The company projected sales revenues of almost £2m for YE December 2015. It has delivered just over £1m.

The company projected losses just over £300k for YE December 2015. It has delivered losses of over £1.5m. No wonder they are back for more. 

All this has been achieved using up the pile of extra cash they were given.

We cant see any reason to believe a single figure Crowdcube produce. The only certainty is that whatever the projections,  the company will fall way short of them. 

This box comes with a warning - HANDLE WITH CARE


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