Alquity UK make £70k profit

Good news for Alquity Crowdcube investors - it has for now stopped making losses. Mind you, its a long way from its forecast £1.4m profit.

The thing about on Crowdfunding and especially Crowdcube, is that all good news, however tiny, must be celebrated joyously or we might commit suicide.

Alquity UK is a financial investment company, so you might expect them to be able to project a couple of years forward with some accuracy. Well they cant. £70k versus £1.4m is laughable.

Here's hoping that £70k becomes £4.8m and them £9.3m (their Crowdcube sales pitch) over the next two years. Unlikely but you have to be optimistic in this game - well that or just plain dumb. 

Alquity UK join the Crowdcube pile up

Alquity raised over £500k on Crowdcube at the end of 2015. Promised profits on growing turnover have turned into massive losses on disappearing revenues. Luckily, they do have a solid, high cost base to fall back on. 

Havent we heard all of this before?

Alquity are supposed to invest in Africa and other emerging markets. The director's report tells us that these markets have been very challenging. This may have come as a surprise to Alquity but we are not sure it would to anyone else.

Despite achieving a decline in revenues from the previous year of over 25%, and increased losses to almost £1m, the company is optimistic about the future. Two of the 5 directors have left.

Crowdcube's projections showed profits for this past year of £300k. As has become the norm, this figure was pure fantasy. Of course putting losses of £1m in to the projections, may have dampened enthusiasm for this investment. The company was valued at around £13m. Who knows?

Projected profits of £1.4m for YE June 2017 are looking unlikely. The Crowdcube claim that they will become a £1bn fund by 2019 is looking optimistic. We wish investors in this one all the best.