Space - the final frontier. Etc etc. Love it or loathe it, it helps if the facts can be the facts. Lovespace's Crowdcube projections are now on their second iteration and they are still way off, somewhere in a Galaxy far far away.
If they could hear shareholders screaming in space, it would go something like - FFS why cant you just be honest with us. Ok so it takes longer to grow a new business - who knew that? But why set out completely unobtainable goals, spend the cash to get there and then turnaround when it is obvious you are way off line and ask for more money.
So here are the facts. Lovespace have used Crowdcube twice. Total raised of around £2.35m - so a large enough number to care about. In their first raise in 2014 they predicted net profits for 2017 of over £7m. Ok so they were young and ambitious. Needless to say they didnt get close.
Short on cash they came back in 2016 - no one seems to have asked about the 14 numbers except us - here. In these projections, the accounts they just filed for YE Dec18, showed a handsome net profit of over £3m. When you read the accounts you will be surprised, like we were, to see that the real number is a loss just shy of £1m. In fact despite projections, this is their best result to date. Losses are now £7.5m.
The company has raised another ~£534k this year so far. It was at a lower share price than in 2017 which is never a good sign.
Our new Buzz Rating - available to members of ECF.Buzz, has given Lovespace a 9 point drop since last year.
I dont think you would get this situation in any other financing channel - without something being done about it. Isn't it time we did something?
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