Saturday, 6 May 2017

Alquity UK join the Crowdcube pile up

Alquity raised over £500k on Crowdcube at the end of 2015. Promised profits on growing turnover have turned into massive losses on disappearing revenues. Luckily, they do have a solid, high cost base to fall back on. 

Havent we heard all of this before?

Alquity are supposed to invest in Africa and other emerging markets. The director's report tells us that these markets have been very challenging. This may have come as a surprise to Alquity but we are not sure it would to anyone else.

Despite achieving a decline in revenues from the previous year of over 25%, and increased losses to almost £1m, the company is optimistic about the future. Two of the 5 directors have left.

Crowdcube's projections showed profits for this past year of £300k. As has become the norm, this figure was pure fantasy. Of course putting losses of £1m in to the projections, may have dampened enthusiasm for this investment. The company was valued at around £13m. Who knows?

Projected profits of £1.4m for YE June 2017 are looking unlikely. The Crowdcube claim that they will become a £1bn fund by 2019 is looking optimistic. We wish investors in this one all the best. 

1 comment:

  1. As of Dec-16 they had grown to $200m assets under management, which was enough to breakeven. Not great but not terrible either. 1BN by 2019 is a long way off however.