Hire Space help people and companies hire venues. They raised £500k on Crowdcube in 2016. Is this another pointless online venture?
The company told investors on Crowdcube that it expected to make a profit of over £500k in the YE March 18. The company's filed accounts for that year show a loss of £900k and the company is sitting on £900k deficit. No new money is filed as being raised since March 2018.
The accounts show that the company has a £500k loan outstanding with Barclays. The accounts state that the intention is that the bank will re finance this loan upon the company raising more capital via an equity release. Do we think the bank will want to know why a £500k profit has been turned into a £900k loss?
Debtors were 22% down on the previous year.
Profits for YE March19 are expected to be £3.15m.
Please do not forget that none of this is Crowdcube's fault. They do not encourage companies to create fictitious sales and profit targets. Investors, who are shortly to be charged by the platform for the privilege of investing in companies like this one, hand over their money willingly and in the full knowledge that they will never see it again.
God bless them all.
"Investors, who are shortly to be charged by the platform for the privilege of investing in companies like this one"
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Its on the blog.
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