Redchurch Brewery raised £500k last year on Crowdcube at £2m. Having missed all their targets and burnt their cash they are now back for another £400k at £5m.
What is it Crowdcube dont understand?
Redchurch may well be a class brewer but their business management is taking the P. They have managed around 50% of the projected sales in the 12 months since they were last here. Do they understand that these figures dont work inversely? You cant half your turnover, increase your losses and then more than double your valuation. That only happens in politics.
Whether on advice from the Crowdcube interns or not , common sense dictates that the company cannot be worth 2.5X what is was 12 months ago. The company even admits that sales have been slower to take off than they anticipated. So why the increase?
What makes it even more ridiculous is that the projected figures for 2015/16 are also miles out when set beside the filed accounts. And they were mainly actuals in the 2016 pitch. YE June 2016 showed a filed loss of £170k against a 2016 projected profit of £1000. You simply cant believe what they say.
From the comments on their forum, it's clear investors are not too happy. Nor would we be. So as not to alarm last years intake, they havent produced any detailed figures in this new pitch. Wonder why?
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