New Galexy Services makes some money but misses Crowdcube targets

New Galexy have been consistent performers for Crowdcube - missing all of their 3 year projections handsomely. The pitch stated that the company aimed to be sold in 2018 for squillions.

Well the good news is the company has just posted its YE Oct 16 accounts and they show net profits of around £290k, up from £90k. The bad news for investors is that this figure was supposed to be  over £2.6m. At this rate they may get sold by 2025.

Cash is looking tight, so we'd expect to see the company back for more from the trough soon. At a greatly increased valuation, of course.

Newgalexy Services files accounts 7 months early

Newgalexy Services raised over £200k on Crowdcube back in 2014.

As part of this raise the pitch stated that the company had secured £550k in finance through equity and grants. The Crowdcube pitch would make this figure up to the required £650k.

Somewhere these figures do not add up. Further grants assumed seem to have dried up  - possibly as they were reliant on KPIs that were not met. Total equity investment is static at £360k.

Anyway the latest accounts, filed 7 months early, for YE October 2015 show revenues of £835k against projected revenues of £3.38m. Some gap.

The good news for investors is that due to stringent cost cutting, the company has managed to make a profit. Ok so its only £90k against a projected profit for the year of £1m but we all understand that no one pays any attention to projections.

Why they have chosen to file so early is a mystery but we may be about to see them reappear for a new equity raise.  It makes you wonder if the company had had the balls to use projections closer to their real achievements, whether they would have raised the Crowdcube money. Investors have to hope they can continue on their now slow progress to the promised exit.

NewGalexy Services file £300k loss

NewGalexy raised money on Crowdcube in 2014 - 122 investors putting in over £200k. According to the pitch, this money was ''to complete'' a total raise of £650,000. From the AR, this other money seems not to have materialised.  Total capital raised to date is only £350,000. The company had access to various Scottish enterprise grants which maybe part of the difference but then these should have limited the reported losses. What is more, the declared historic share capital of the company published in the Crowdcube pitch is totally wrong at £188k.

These major discrepancies aside, they have joined the ever increasing band of companies that have filed accounts which bear no resemblance to the projections used to sell the equity - the projections which were so carefully and thoughtfully vetted by the Crowdcube out to lunch department.

So NewGalexy at YE Oct 2014 (the accounts were several months late) show a  pretty sorry picture. Projected profits for this period were over £200k, actual losses were £290k. The company has no cash and owes stacks. It is being kept afloat by the directors.

We wish we could bring you some good news of Crowdcube pitches that have at the very least managed to get close to their projections but we cant. Maybe that is a function of the Crowdcube model  - like night following day.