St Vibes - an unheralded Crowdcube success which makes a profit of around £500k pa, has bought back some of its Crowdcube SHs shares at £625 each share. Investors paid £500 per share in 2013.
We have written a lot about the guys at St Vibes - we like them. However this move is an odd one. Sure it offers liquidity to SHs with no open market but to take a 25% return over 5 years on your investment or very simply 5% pa, seems pretty hopeless form an investment standpoint. The company is making serious profits so why would you want to bail out now?
Of course with SEIS this gain will be considerably more but we still ask why get out now?
We love these guys for showing the rest of the ECF sector that scaling is not always the holy grail and for being a very rare example of a company that has exceeded its forecasts.
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