Monday, 23 January 2017

Why would anyone invest in this?

Stacking Systems raised £94k on Crowdcube in early 2014 for their pallet stacking solution The Pallet Eater. It seems to have developed chronic indigestion.

Put to one side the fact that after almost three years, the Pallet Eater still doesnt exist as a commercial entity; even though it seemed to be close to commercial production in 2014.  The claim made in the Crowdcube vetted video is very clearly incorrect. It has what I think we now call alternative facts. Namely that the pallet eater is (that is 'is' in 2014) 6 times faster than fork lift trucks at stacking pallets.

Firstly in 2014 the Pallet Eater did not exist except on paper and secondly now that one prototype does, it's clear that it is the slowest way to stack pallets ever devised by man. A video to show this is out there where it takes the Pallet Eater 7 minutes to stack 6 pallets - not moving them more 2 yards just putting one on top of the other. Something it would take one or two people 2 minutes to achieve without a fork lift. I know we are known for our low productivity but this is ridiculous.

The video is part of a new funding drive by the company - the money from Crowdcube has now run out as has the Smart Award cash. According to the 2014 pitch, sales were due to start in 2014 with £500k in that year, over £2m in 2015 and an impressive £4.8m delivering profits of profits of 1.8m by now. Well as they dont have product to sell, it's fair to assume they missed these targets by someway. Shareholders will be relieved to know that their cash now appears as intangibles on the BS.............

The main point here is yet again that Crowdcube have been promoting facts that are not facts - they are simply made up alternative facts or total falsehoods.  

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