More disappointing results for Cauli Rice and Righteous mean one of Crowdcube's better companies is still a long way from giving investors any ROI.
You cant fault the work ethic behind the founders of Cauli Rice and Righteous. But you might question their business sense.
We have lost count of the number of equity crowdfunding raises these guys have made but it's a few now and each time their projections promise much and deliver less. To be fair, each hiccup has a genuine reason - it's just that these reasons are often foreseeable. Any business acumen would have factored them into the original plans. But then would have dropped the expectations and ensuing 'value' of the shares. Investors in ECF should expect predictions to change but they should also be allowed expect a level of confidence in management that is missing here.
Examples include a major US buyer taking a sample order and then not reordering. As the projections included sizable orders from this source, this impacted the real revenues. Then there was the problem with winter cauliflowers - they didnt like the Cauli Rice process and this is one reason why these latest accounts are so poor. Instead of a projected £400k profit for 2015, we are looking at a £800k loss. Money seems very tight so we'd expect them back again soon for more.
Righteous has never made money, despite its projections and plans. 2015 shows more losses of around £40k, against a profit projected by the Crowdcube raise of £350k. Righteous is now one the older companies funded via Crowdcube, still alive and kicking. So lets hope they can turn out a profit soon.
Things for Cauli Rice look more promising if there are no more slip ups. Although we feel that the process of making the rice from cauliflower is so simple that people should really be doing it themselves with fresh cauliflower. This product seems to be swimming against the flow.