What's your Grind?

Grind &Co, the coffee expert food chain, have done well on Crowdcube. They first raised a £1.3m, 4 year bond and then another £1.9m in equity funding, from 1200 Crowdcube investors. The bond is due for repayment this July. So far they have missed their aspirations by someway.

Grind currently have 9 outlets, one short of the number they'd hoped for. However that isnt the issue. It's what these units are producing which must be cause for concern. Substantial projected profits have been replaced with even larger losses - averaging over £1.3m per year for FY 2017 and 2018.

Clearly repayment of the bond in July might be an issue. Another cash injection at the end of 2018 may help but not if losses since April 18 have been at the same levels as 2016 and 2017. The accounts show some interesting debtor numbers. It will certainly tighten future grinds more than a little.