Extraordinary. Only a few months ago Labrador were issuing new shares and taking on new directors. On 25 March 2019, they applied to go into administration.
This company has now been bought out of administration by another Crowdcube Alumni Verv, aka Green Running Ltd. Bets anyone?
So what went so very wrong? Crowdcube sold their shares at a valuation of £5m. The suggested exit in 2022 was with a 10X uplift for lucky investors.
Well we cant know that for sure at the moment. Clearly their well laid out plans and their team of experts were all Kennomeat. How can you expect a dog to thrive on that? It looks to us like it may well be the case that the Labs package as sold to Crowdcube investors was not what it was. Reviews are poor to awful. We dont remember the pitch being about a software package as yet undeveloped - at £5m. Seems unlikely. Shareholders should be asking for the dogs bollocks.
Projections used, to what now looks like 'con' investors our of £890k, showed plenty of cash in the bank at the end of 2018. We assume these were wrong. Does that ring any bells? As we keep on saying, the reason projections are important is because they are supposed to stop this happening. On Crowdcube they are merely equity sales tools.
The market ready easy to switch app which allowed consumers to change power supplies has clearly either not been market ready as claimed or has failed to impress. The company was due to be doing £4m in revenue in 2019 on a 82% gross margin. Figures for the following year showed doubled revenues and £1.4m NP. More Kennomeat.
We await the initial report but we can guess what it will say. Have you ever tried Kennomeat - it sucks.
Interesting piece this https://www.livingbridge.com/private-equity/private-equity-news/news/2018/livingbridge-growth-invests-in-labrador-and-yourwelcome/
ReplyDeletehttps://www.livingbridge.com/private-equity/our-investments/companies/labrador/
Interesting this PE firm are in for a decent amount with about 7.5% of the A shares and 3.5m or about 12 % by Hambro Perks, I think I saw one of the Hambro Perks guy doing a raise on Seedrs recently as well.
Looks like most of PE came in at 23p in August 18, so not a great result by the look of it. Got to wonder about some of this DD as looks very strange. Maybe a pre packed lunch for someone
Funny these big paid promoting press never update the stories
ReplyDeletehttps://www.forbes.com/sites/trevorclawson/2018/02/19/power-to-people-a-data-startup-aims-to-help-fix-britains-broken-energy-market/#540a11992b1f
Looks like Labrador has a new kennel in Verv. GreenRunning Ltd.
ReplyDeleteLabrador have been bought out of administration by verv, another Crowdcube alumni.
ReplyDelete