Wednesday, 6 June 2018

Witt Energy top the Crowdcube pile of May disappointments

Witt raised £2.4m on Crowdcube in 2016. Their projections, used to encourage this investment, which was over 3 times their target, are now in pieces. Other companies also followed the trend in the month of May. 

Witt is a serious company creating a very serious renewable energy facility. Why then, you have to ask, are their financial projections on Crowdcube a total joke? There can only be one answer, the same one we have been giving for 3 years here - it's to get investors hands deep into and out of pockets.

There is one very consistent feature with all Crowdcube pitches. They dont just miss projections - they totally blitz them on the low side. When something is so bleedingly obviously wrong, why is it it cannot be corrected?

Witt had forecast profits for the YE August17 of £394k. They made losses of £470k. Whats more, this year, they have projected profits of £4.08m. How's that going Witt? And as we are on the topic, the one we never get off, how is this fair and not misleading?

Witt declared a £200k loan in the Crowdcube pitch, which was due for repayment in November 2018. This loan was in fact repaid in April this year in full. Obviously as the company raised an extra £1.65m on Crowdcube, they have cash. But it does seem a little odd to be giving £200k back 8 months early, when the company will need more cash soon. 

Other members of Crowdcube's over subscribed Disappointment Club for May are - 

Pallet Eater
Tidy Books Europe.

Plenty waiting in the wings for June and plenty late filing. 

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