Need some help? Close Help

AirPOS

Platform:
Crowdcube
Stage:
Expansion
Industry:
Technology
Location:
UK - Northern Ireland
Date Rated:
02/05/17
Raise:
£400,000
Equity:
16.67%
Valuation (Pre Money):
£1,999,520
Industry: Technology
Location: UK - Northern Ireland
Platform: Crowdcube
£400,000 Expansion
Valuation: £2,399,520
Date Rated: 28/04/17

MANAGEMENT

PRODUCT

INVESTMENT
Tax Status: EIS

Business Summary

AirPOS is point-of-sale and e-commerce software company aiming to help small retailers to better serve their customers, lower operating costs and increase sales. AirPOS provides a complete platform, available on Windows, Android and iPad achieving a subscription base of over 600 retailers to date. This round of investment will be mainly used to fund the marketing plan.

Financial Overview

Date (y/e) Dec-16 Dec-17 Dec-18
Sales Dec-16£139,820 Dec-17£523,378 Dec-18£1,423,527
Gross Profit Dec-16£54,936 Dec-17£279,387 Dec-18£896,512
GP as % sales Dec-1639% Dec-1753% Dec-1863%
Overheads Dec-16£274,934 Dec-17£521,794 Dec-18£1,042,918
Operating Profit Dec-16-£260,118 Dec-17-£242,407 Dec-18-£146,406
OP as % sales Dec-16-186% Dec-17-46% Dec-18-10%
Closing Cash Dec-16£10,238 Dec-17£223,004 Dec-18£76,598

Note: This financial information has been sourced from the company on 28/04/2017 or from public sources. Financial data is NOT verified by Wheatfromchaff Ltd.
72%
SKILLS:
EXPERIENCE:
COMMITMENT:
The Founder is a multi-skilled individual and he has gathered a team with strong product development expertise but further marketing skills would be beneficial in the growth stage.
The Founder has not achieved the level of growth expected here before, but he will be supported by successful advisors and a Chairman with significant startup experience.
The Founder has invested several years and has had a low salary to date, other Directors are not remunerated and there is a full-time and loyal management team driving the company.
56%
MARKET:
PRODUCT:
COMPETITION:
During the next two years, the industry expects to add further 30m POS terminals worldwide and the company is targeting 88% of the total 17m businesses that are not still selling online.
Although the product is only available in English and limited to three currencies (£/€/$), the product has achieved relevant commercial traction and gained positive testimonials.
There are a variety of small, large and well-funded players in this industry providing similar solutions but AirPOS intends to grab market share of the unaddressed micro-merchants segment.
54%
PROFITABILITY:
CASHFLOW:
RETURNS:
The company is acquiring customers for less than a quarter of their expected Lifetime value which if it can be sustained demonstrates a very attractive business model.
The team intends to increase the subscription base to £102k per month by the end of 2018. This would help the company be self-supporting but this round provides only limited headroom.
Given the limited forecast, it is difficult to foresee what investors could expect if an exit is achieved but a growing subscriber base would support an increasing valuation over time.


Conclusion

The company has proven commercial traction with over 600 subscribers across 12 different countries in this fast growing market, but it will prove more difficult to build a significant market share as there are numerous other companies in every country providing similar solutions. It will therefore take time and a sustained marketing spend to build awareness of the AirPOS product and its unique benefits so investors may need to be patient to see superior returns.

It would be re-assuring if the business could confirm it will trademark its brand before investing much more in it.

Note: We have not received a business plan from AirPOS and therefore this rating is based on the information available within the Crowdcube pitch.

Related Links

Crowdcube Pitch

www.airpointofsale.com

 

Right To Reply

Are you the entrepreneur? If you would like to publish a comment on our rating, please contact the ratings team.

Latest Forum Comments

Read All Comments

Disclaimer

The views and opinions expressed on this bulletin board are the sole property and responsibility of the author. Neither Crowdrating nor Wheatfromchaff Ltd, nor any of the directors or officers of Wheatfromchaff Ltd accept any responsibility or liability for them. Readers should be aware that comments do not constitute investment advice and may be inaccurate. Please seek to verify and take advice on all comments before relying on them in the context of any investment decisions you may make. if you wish to use the bulletin board please be aware you are accepting full responsibility and liability for what you write. Please look here for more specific rules we impose on people using our bulletin boards. We moderate all bulletin boards and we reserve the right not to publish your comments.

Disclaimer

Your capital is at risk when you invest in shares and debt securities. You can lose some or all of your money and may not be able to realise your investment. Therefore you should should never invest more than you can afford to lose. If in doubt about the suitability or tax implications of any investment, please seek independent financial advice. 

Information published on this website and any other reports or ratings published on CrowdRating.co.uk or by Wheatfromchaff Limited (trading as Wheatfromchaff) have been prepared by us in the United Kingdom for information purposes only. Wheatfromchaff Ltd is Authorised and Regulated by the Financial Conduct Authority FRN: 751017. 

No content on this website or on any reports or ratings published on this website nor any copy of it, nor any other reports or copies of them published on CrowdRating.co.uk may be reproduced, redistributed or copied in whole or in part for any purpose. Any and all reports have been approved by, and are being distributed in the UK and the European Union (EU) only and are not to be distributed in any other jurisdictions where their distribution may be restricted by law and persons into whose possession this or any other reports come should inform themselves about and observe such restrictions.

This report and any other reports published on CrowdRating.co.uk do not constitute an offer or a solicitation to buy or sell any securities referred to herein. It should not be so construed, nor should it or any part of it form the basis of, or be relied on in connection with, any contract or commitment whatsoever. The information on this website or in reports or ratings published by Wheatfromchaff, or on which this or any other reports are based, has been obtained from sources that Wheatfromchaff believes to be reliable and accurate, and in accordance with COBS 2.4 of the FSA Handbook we have verified it to the best of our ability. However, it has not been independently verified and no representation or warranty, express or implied, is made as to the accuracy or completeness of any information obtained from third parties. The information or opinions are provided as at the date of this report or any other report publication dates and are subject to change without notice. The information and opinions provided in this and any other reports take no account of the investors/ individual circumstances and should not be taken as specific advice on the merits of any investment decision. Investors should consider any or all of the reports or ratings we publish as only a single factor in making any investment decisions.  

Wheatfromchaff does not accept any liability whatsoever for any direct or consequential loss however so arising, directly or indirectly, from any use of this report nor its contents. Investors may receive back less that they invested as investments may fall as well as rise in value. Investors should obtain independent advice based on their own circumstances before making investment decisions. By accepting this report you agree to be bound by the foregoing limitations.

The Ratings we publish have been approved and issued at Financial Promotions in the United Kingdom by Wheatfromchaff in the United Kingdom who is Authorised and Regulated by the Financial Conduct Authority FRN: 751017. Wheatfromchaff Limited registered office is Kilver Court, Kilver Street, Shepton Mallet, Somerset, BA4 5NF and telephone number +44 (0) 1749 347 577. Telephone calls may be recorded. VAT No: 214 0196 49

© Wheatfromchaff Ltd All Rights Reserved February 2017