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The Lakes Distillery

Platform:
Crowdcube
Stage:
Expansion
Industry:
Food & Drink
Location:
UK - North East and Cumbria
Date Rated:
09/11/17
Raise:
£1,000,000
Equity:
2.21%
Valuation (Pre Money):
£44,248,869
Industry: Food & Drink
Location: UK - North East and Cumbria
Platform: Crowdcube
£1,000,000 Expansion
Valuation: £45,248,869
Date Rated: 07/11/17

MANAGEMENT

PRODUCT

INVESTMENT
Tax Status: EIS

Business Summary

The Lakes Distillery is a whisky distillery based in the Lake District. It has been laying down single malt stock for maturation since 2014, meanwhile selling lines of gin, vodka and a British blended whisky, and operating quite successfully as a tourist attraction. These funds will be used to increase production.

Financial Overview

Dec-19
Date (y/e) Dec-15 Dec-16 Dec-17 Dec-18 Dec-19
Sales Dec-15£2,980,000 Dec-16£3,430,000 Dec-17£4,600,000 Dec-18£4,740,000 Dec-19£5,830,000
Gross Profit Dec-15£1,520,000 Dec-16£1,820,000 Dec-17£2,250,000 Dec-18£2,350,000 Dec-19£2,980,000
GP as % sales Dec-1551% Dec-1653% Dec-1749% Dec-1850% Dec-1951%
Overheads Dec-15£1,920,000 Dec-16£2,180,000 Dec-17£2,250,000 Dec-18£2,250,000 Dec-19£2,330,000
Operating Profit Dec-15-£400,000 Dec-16-£360,000 Dec-17- Dec-18£100,000 Dec-19£650,000
OP as % sales Dec-15-13% Dec-16-10% Dec-170% Dec-182% Dec-1911%
Closing Cash Dec-15- Dec-16- Dec-17- Dec-18- -

Note: This financial information has been sourced from the company on 06/11/2017 or from public sources. Financial data is NOT verified by Wheatfromchaff Ltd.
73%
SKILLS:
EXPERIENCE:
COMMITMENT:
Having started, managed and sold a distillery before, Mr Currie clearly knows what he's doing and his co-Founder has demonstrable business development skills.
Overall the team is very experienced. While the Master Blender is less experienced than the Founders, he is highly qualified and has relevant experience in the industry.
The business has reached a size where day-to-day operations could be expected to continue without the Directors involvement, yet the MD still appears able to dedicate most of his time to it.
69%
MARKET:
PRODUCT:
COMPETITION:
The market for whisky is large, and new distilleries are a rapidly growing segment. In addition the visitor centre and bistro are tapping into a vibrant regional tourism market.
Reviews of The Lakes Distillery's blended products are good, and it is generating significant revenue as a tourist destination. But only time will tell if the final single malt is any good.
There are a number of established English distilleries, so The Lakes Distillery will ultimately need to distinguish itself with a market leading product.
47%
PROFITABILITY:
CASHFLOW:
RETURNS:
The summary financial projections show a company with modest growth plans that should be achievable - supported by the current year's strong performance.
There is insufficient information available to fairly rate this aspect of the business
The current valuation is almost 10x sales, and with sales projected to less than double by 2021 the company would have to achieve an incredible valuation for investors to see significant returns.


Conclusion

The Lakes Distillery has a complete and accomplished management team, with a business that is already making significant revenues before the maturing whisky stock is taken into account.

The lack of detail in the financial projections or the proposed use of funds however, and a valuation that will likely limit potential returns, investors may see little value beyond owning a part of the brand, or claiming their shareholder discount on whisky purchases.

An investment of £1,000 will entitle shareholders to a lifetime discount of 10% off online sales. It should be noted that shareholder rewards worth in excess of £1,000 may result in the loss of EIS relief.

Related Links

Crowdcube Pitch

www.lakesdistillery.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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