Thursday, 3 May 2018

Wild Beer aims to terrify investors with first accounts since claiming £1.7m on The Crowdcube Lottery.

Wild Beer raised £1.7m on Crowdcube in March 2017. Filed accounts for YE July 17 show losses of £370k against actual figures given in the pitch of a small profit. Sales fell short by £400k which explains the margin.

This was a hugely popular campaign - raising £1.7m against a target of £1m. When the campaign was running, the company really should have known that their predictions for £4.5m turnover for the year to July (just 3 months after the campaign ended) were exaggerated. So with 9/12s of their year completed, the company has been shown to be £400k out. 

It is just another example of Crowdcube investors being kept in the dark about what is really on offer. Investors will just have to hope that the numbers for 2018 are a little more accurate.

As a side note here, when we were looking at Wild Beer's GM, we were surprised to find that in their projections they have partly used a miscalculation in reaching the figure for 2015/16 as 2016/17. You dont get the GM by dividing CoS by revenues. The GPM is achieved by taking away the CoS from the revenues and then dividing that (the net revenue) by the revenues - giving the % of the revenues that represent the gross profit. I didnt check anything else but its a glaring error not picked up by either the company or Crowdcube. If a business hasnt got the skills to run these numbers they should get them in. And if they dont, they certainly shouldnt be allowed loose onto the public. It's basic common sense.

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