Friday, 3 August 2018

So whats happened at Energie Corp since its Crowdcube success in 2016?

Energie Corp run cheap fitness clubs and are well versed in the dark arts of franchising. They took £630k off Crowdcube investors in 2016. Spectacular growth forecasts where backed up with impressive opening schedules and unit numbers to match. 

Since then, the company has launched a rebranding of its Fit4less name and gone for Energie, with a cheeky little french twist. Reviews of the sites are not good.

What is curious is that the Crowdcube FCA verified section of the pitch in 2016 said this - 

Our track record
Over the past 13 years, √©nergie has built a fitness network spanning England, Wales, Scotland, Ireland, Latvia & Poland with 93 clubs trading, a membership of over 110,000 & network turnover of c£26m. Our key achievements to date include:
  • UK Market leader in fitness club franchising and third largest fitness brand measured by clubs trading
  • Over 150 franchises secured, 93 clubs trading, 31 in the current pipeline for opening and new franchisees coming on board at a rate of 40 per year and growing
  • Largest fitness club operator in Ireland, with 12 clubs and c. 21,000 members
  • Multi-award winning brand in both the fitness & franchising sectors, including wins & finalist positions in the UK Active Flame Awards, HCM Members Choice Awards & BFA Franchise Awards.  
  • Demonstrated transportability of our brands with with 21 clubs across four countries outside of England & Wales

The latest filed accounts, with accompanying statement full of how well they are doing,  said that they had 11 clubs in Ireland, one has been lost in the mists, 6 in Scotland and 1 club in Poland. A total of 18 which means they have lost 3 from the 21 declared above. By the end of the year, they state that they had 88 clubs across all of their networks. 

Now either I have gone potty and all of you are sane or vice versa. I read this as a considerable fall in the number of clubs operating since Crowdcube allowed statements on their platform giving the number as 93 with another 31 in the pipeline in 2016. So by now a minimum of 124 - not the 88 in the accounts. That is some difference. Other numbers on the Crowdcube platform also make it look as though things have not gone to plan.  

In a similar vein the accounts show further losses where the projections showed a healthy downward dog style profit of £630k. Ruff. 

Crowdcube - helping to make the impossible unattainable, using Government backed tax breaks.  

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