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Monday 15 October 2018

Sourced Market back on Crowdcube selling equity



Well well. Sourced Market sold their £1m bond on Crowdcube in 2016. To achieve that they produced financials showing their expected progress. Now they are back on Crowdcube with a valuation of £10m, raising £750k in equity or more likely far more than that. 


So how have they performed since 2016? Well they tell you that things are going great guns - but then they dont tell you what they told you last time. 

So they have 4 units and four units is what they projected. That is pretty well where the good news ends.

Turnover was supposed to be north £9m for YE March 18 but is only £6.4m. Revenues for YE March19 were forecast to be over 11m. EBITDA for YE March 18 was supposed to be £500k but is in reality, minus £800k. Even on £6.4m (a figure they told investors was expected for YE 2017) they showed a positive EBITDA of £300k. What has gone wrong - well nothing apparently. 

Now reading the current Crowdcube pitch, you wouldnt have a clue about any of this. We are not saying this company wont be a success, we are just pointing out the facts which seem to have been missed in the latest attempt to raise more cash.

This campaign is almost complete at the £750k level from just 35 investors. 

Oh and the bond is still o/s as are various other long term debts. 

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