Red Advertising, now Recruitive Software, are record makers. This is their fifth Crowdcube pitch - the previous 4 yielding £885k. Losses to date are £2.3m.
Richard Clarke invented the company. In the last raise in 2014, he was adamant that his projections were sound. They were not.
In 2015 he attempted to get a second Thin Cats loan for £275k. In those projections in 2015, Richard told people the actual turnover for YE May 2013 and 2014 was £95k per year. However in the Crowdcube 2014 raise, he stated that the prior six month period (historic and July to December 2013) had a turnover of £180k. So in six months he managed a revenue twice the size of the stated revenues (historic) for the full 12 month period. Something that is unlikely. The 2014 revenues were supposed to be over £700k; two years later the company has still not managed to get to £700k.
I find it hard to understand how any of this company's projections can be taken seriously. By now they were supposed to be making heavy profits on turnovers of well over £3m. Yet the real figures show continued losses and revenues well short of 7 figures.
You have to consider that since 2012, Crowdcube punters have given Richard a job and salary for 6 six years. Whilst the company has come some way, it is in no way far enough to justify this laughable current valuation.
So, he has done it 4 times - can he make it 5? You bet.
We have given various warnings about Red - here