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Vita Mojo

Platform:
Crowdcube
Stage:
Expansion
Industry:
Food & Drink
Location:
UK - London
Date Rated:
19/05/17
Raise:
£1,500,000
Equity:
7.21%
Valuation (Pre Money):
£19,304,438
Industry: Food & Drink
Location: UK - London
Platform: Crowdcube
£1,500,000 Expansion
Valuation: £20,804,438
Date Rated: 16/05/17

MANAGEMENT

PRODUCT

INVESTMENT
Tax Status: EIS

Business Summary

Vita Mojo is a restaurant chain and software company allowing customers to personalise their food. Vita Mojo has opened three restaurants, a central kitchen and has been developing a software licensing business. This round of investment will be mainly used to fund new openings and further software development.

Financial Overview

Date (y/e) Dec-16 Dec-17 Dec-18 Dec-19
Sales Dec-16£647,646 Dec-17£2,718,009 Dec-18£10,418,832 Dec-19£23,465,412
Gross Profit Dec-16-£287,382 Dec-17£984,048 Dec-18£5,568,403 Dec-19£16,605,254
GP as % sales Dec-16-44% Dec-1736% Dec-1853% Dec-1971%
Overheads Dec-16£749,647 Dec-17£2,038,230 Dec-18£5,302,327 Dec-19£14,371,096
Operating Profit Dec-16-£1,096,664 Dec-17-£1,194,888 Dec-18-£74,616 Dec-19£1,701,812
OP as % sales Dec-16-169% Dec-17-44% Dec-18-1% Dec-197%
Closing Cash Dec-16£426,640 Dec-17£344,167 Dec-18£408,191 Dec-19£580,962

Note: This financial information has been sourced from the company on 16/05/2017 or from public sources. Financial data is NOT verified by Wheatfromchaff Ltd.
65%
SKILLS:
EXPERIENCE:
COMMITMENT:
Every key role is covered with appropriate skills but the increasing complexity of the business model, especially franchising, will provide increasing challenges for the team.
The management team brings a wide range of experience to Vita Mojo and they will be supported by industry leaders and an international catering company.
The Founder's financial exposure has been reduced after the repayment of his £95k loan, however all the team is working full time and has been committed to Vita Mojo for almost 3 years.
74%
MARKET:
PRODUCT:
COMPETITION:
New Partner Elior has over 23k food outlets. Vita Mojo is also looking to license the menu personalisation software and the global food tech market is expected to be worth over £200bn by 2022.
The restaurants are functioning well with many positive testimonials but the license subscription and franchise concepts have to be proven yet.
There is plenty of room in the food tech industry and many new entrants. However, Vita Mojo's software enabling food personalisation appears innovative and could prove disruptive.
49%
PROFITABILITY:
CASHFLOW:
RETURNS:
Although Vita Mojo has an aggressive forecast, the gross margin could rapidly increase with the introduction of new revenue streams and Elior could provide significant commercial traction.
The roll-out will require a great deal of cash and delays on restaurant openings or any shortfall of potential subscribers to the software would easily stretch the company's cash position.
Given the current high valuation, investors in this round should only expect attractive returns if the management team delivers an EBITDA of at least 2/3 of the stated £77m by 2021.


Conclusion

Vita Mojo has an innovative idea that has demonstrable benefits to both restaurants and customers and they now have a strong food industry player on board. To achieve the intended growth however, the business will have to not only successfully open the planned number of new restaurants but also make a success of its expansion into franchising its software which is a very different business to operating the restaurants itself.

Vita Mojo has planned an aggressive marketing strategy in due course but the global expansion will clearly need further funds to be delivered. Therefore, investors should also note that a minimum investment of £10k is required to secure pre-emption rights.

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

Related Links

Crowdcube Pitch

www.vitamojo.com

 

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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

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