Need some help? Close Help

Derby Brewing

Platform:
Crowdcube
Stage:
Expansion
Industry:
Food & Drink
Location:
UK - East Midlands
Date Rated:
26/04/17
Raise:
£500,000
Equity:
9%
Valuation (Pre Money):
£5,055,556
Industry: Food & Drink
Location: UK - East Midlands
Platform: Crowdcube
£500,000 Expansion
Valuation: £5,555,556
Date Rated: 18/04/17

MANAGEMENT

PRODUCT

INVESTMENT
Tax Status: EIS

Business Summary

Derby Brewery is a craft brewery with national distribution including major supermarkets and operating several local venues. Derby Brewery's turnover exceeds £3m and its products have won many awards. This round of investment will be mainly used to further expand and develop the product.

Financial Overview

Date (y/e) Sep-16 Sep-17 Sep-18 Sep-19
Sales Sep-16£3,114,841 Sep-17£3,611,653 Sep-18£4,496,472 Sep-19£5,533,412
Gross Profit Sep-16£1,926,697 Sep-17£2,352,170 Sep-18£2,971,424 Sep-19£3,640,122
GP as % sales Sep-1662% Sep-1765% Sep-1866% Sep-1966%
Overheads Sep-16£1,678,646 Sep-17£2,094,360 Sep-18£2,411,689 Sep-19£2,774,330
Operating Profit Sep-16£196,925 Sep-17£174,709 Sep-18£425,958 Sep-19£725,872
OP as % sales Sep-166% Sep-175% Sep-189% Sep-1913%
Closing Cash Sep-16-£6,216 Sep-17£461,076 Sep-18£431,660 Sep-19£1,004,283

Note: This financial information has been sourced from the company on 18/04/2017. Financial data is NOT verified by Wheatfromchaff Ltd.
85%
SKILLS:
EXPERIENCE:
COMMITMENT:
The management team has the required skills to drive the business and further personnel will be hired to support the outlined growth. Further finance capabilities would be helpful.
The team has many years of product development and commercial experience within the brewing industry.
The management team has invested over a decade to reach this point and the Directors are remunerated through a combination of salary, dividends and loan interest.
67%
MARKET:
PRODUCT:
COMPETITION:
Craft brewing is an exciting segment of the UK beer production industry, set to reach £9.6bn in value by 2021. In the past six months, 13m Brits have consumed a craft beer.
Derby Brewing has a wide product range recognised for its quality and has been listed in major supermarkets. Additional products and international expansion should further increase brand awareness.
There is a growing competition in the craft brewery industry, with numerous well-backed entrants in recent years and many new small breweries opening each year.
61%
PROFITABILITY:
CASHFLOW:
RETURNS:
Profit margins are supported by the increasing expansion of distribution channels, additional product offerings and a diverse set of income streams but a larger marketing budget seems needed.
There is limited headroom against any revenue shortfall but the business is already generating profits and these funds will be essentially used to accelerate growth.
The company has significant debt. However, investors could expect reasonable returns if an exit is achieved and they may benefit from dividend payments in due course if earnings allow it.


Conclusion

Derby Brewing has an experienced management team with deep knowledge of their own business. The business is already mature, its products have won numerous awards and the team is growing B2B sales and expanding the product offering.

The recent reduction in the pre-money valuation has increased the chance of investors securing a reasonable return over time.

Related Links

Crowdcube Pitch

derbybrewing.co.uk

 

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