The Lakes Distillery Co raised £1.6m on Crowdcube at the end if 2017. They will be an English Whisky producer - given time. Now the rumour mill is in overdrive as they release both PR barrels - an IPO before the end of 2018.
The previous PR batch - the investment by the Finnish giant Eera with the issue of 2.5m new shares seems to have evaporated - which can happen with distilling. Recent investments are on the very small side although the valuation from a year ago appears to gone up 10X . It is difficult to tell.
One thing is for sure, the company has a habit of slightly exaggerating its progress - listings with Tesco for example turn to be a local listing in only 19 stores - although of course this may expand. YoY revenue growth of 80%, as stated on Crowdcube, is now reported in the FT as 43% and if you do the math the total revenue of £9m for 2015/16 and 17 as declared in the Crowdcube pitch, doesnt really compute with the 2017 revenue figure of £4.3m on 43% growth from 2016 if you believe their 80% figure.
They also claim to have sold the most expensive bottle of new whisky. So what?
So an IPO raising just £15m before the end of 2018 - given the current UK climate and all. Likely - na. Just more PR to promote their brand whilst they wait for the whisky to do its thing. And do they think that a whisky with zero heritage, distilled in England of all places, is going to compete with the real thing. Pull the other one. Tourism maybe, - whisky, no chance.
It seems a bit more than just PR spin as it appears shareholders will be voting on resolutions to approve an IPO towards the end of this month.
ReplyDeleteIn general I think this is a good business with improving financials and a solid leadership team (albeit there is a tendency to PR fluff). I suppose the important question is what the valuation will be in the event of an IPO.
The Crowdcube pre-money valuation on their raise last year was around £44 million which seemed very punchy on the basis of the turnover and profit at that stage. It will be interesting to see whether the valuation of the business on IPO is higher or lower than that. It certainly won't be 10x that!
Thanks - altho I dont agree. Floating ideas of IPOs has become a new way of gaiong useful headlines. More often than not hey do not happen. Im not convinced this is a a good company - having some experience in the whisky business. But time will tell.
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