Wednesday, 8 August 2018

Workabode files small losses for YE November 2017 beating their Crowdcube projections


Workabode raised a total of £277k on Crowdcube in 2014 and 2015. Crowdcube projections show them making a £7.4m profit for YE May2018. 


There are numerous legitimate reasons why a new company might miss its projections. We have covered them on this blog as many times. Delays in funding, delays in technology are just two. Workabode has in fact beaten its projections for 2016/17 - makning a far smaller loss. 

We asked Workabode (Ex One City) whether they could fill in the blanks left by a very minimal accounts filing. They were aggressively sure they couldnt - advising they would 'come after me' if I wrote anything 'onerous' about them. Odd use of the word onerous I thought. 

So we are no clearer - maybe the next accounts will reveal a £7m profit. Certainly the projected plans show the company leaping from a £500k t/o to a £10m t/o in the last 12 months, with the next 12 producing £28.5m in revenues - all on a GPM of 93%. All of this achieved with the minimal inputs, a small SM presence, a website that doesnt do anything and what appears to be a large (projected) short term loan. Gold Rush.

Mind you, whilst Workabode has a tiny following on Twitter - who follows nothing - The Irish founder, Trevor O'Hara, has a healthy crowd for his continuous stream of banal business school retweets. That's Twitter for you. He has apparently written a book(he lists himself as an author but maybe that's the Irish humour) but we couldnt find it. As a self proclaimed Irish serial entrepreneur, we have struggled to locate anything with substance. Maybe that is also an Irishism. Still as he loves to tweet, failure is all part of the entrepreneurial journey. Something we can agree with.

You can catch more of Trevor's wise musings here  http://trevorohara.com/about/ . Odd use of language (as in onerous) but gives you a flavour of the man.

Previous talk of an exit by the end of 2019 is still possible. The 2014 raise highlighted the following - 

One City aims to roll out at airport locations too. We already own the IP for a 5.2m private pod with fully reclining seat, flat screen TV and Singapore Airlines-type service levels. So we are well positioned to target business travelers who frequent the top 75 airports in the world handling more than 15 million passengers annually.

We couldnt find this referenced in the accounts which show just £3,600 of fixed assets. That would be some write down over 3 years.

Our best guess is that the company needs to up its income a tad to stay balance sheet positive. We wish them luck. They told me they keep their shareholders well informed. So if any of you wish to comment or contact us on this, then please do. 

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