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Optiat

Platform:
Crowdcube
Stage:
Expansion
Industry:
Consumer Products
Location:
UK - London
Date Rated:
07/02/18
Raise:
£150,000
Equity:
7.54%
Valuation (Pre Money):
£1,839,390
Industry: Consumer Products
Location: UK - London
Platform: Crowdcube
£150,000 Expansion
Valuation: £1,989,390
Date Rated: 05/02/18

MANAGEMENT

PRODUCT

INVESTMENT
Tax Status: SEIS & EIS

Business Summary

Optiat has developed a line of body scrubs and face masks based on recycled byproducts such as coffee grinds and hemp husks. They are carried by a number of high street retailers with distribution in a number of European countries as well. These funds will be used to drive marketing activities, develop new product lines and to provide working capital.

Financial Overview

2021
Date (y/e) 2017 2018 2019 2020 2021
Sales 2017£114,729 2018£602,432 2019£1,657,674 2020£3,744,636 2021£7,644,259
Gross Profit 2017£43,221 2018£251,720 2019£798,480 2020£1,870,912 2021£3,892,570
GP as % sales 201738% 201842% 201948% 202050% 202151%
Overheads 2017£61,425 2018£344,245 2019£694,619 2020£1,198,072 2021£1,733,815
Operating Profit 2017-£18,204 2018-£92,525 2019£103,860 2020£672,840 2021£2,158,755
OP as % sales 2017-16% 2018-15% 20196% 202018% 202128%
Closing Cash 2017£3,060 2018£26,311 2019£160,479 2020£716,827 £2,483,677

Note: This financial information has been sourced from the company on 30/01/2018 or from public sources. Financial data is NOT verified by Wheatfromchaff Ltd. Closing Cash from 2020 wasn\'t provided so here is projected based on EBITDA.
54%
SKILLS:
EXPERIENCE:
COMMITMENT:
Optiat's Founders have shown significant talent in bringing the company this far, a conclusion supported by their success in pitching competitions. A skilled CMO will be essential for growth.
The team are very young and therefore quite inexperienced, but this clearly hasn't held them back. The presence of a skilled advisor with industry experience is a great asset.
Optiat has been the Founders' sole focus for some time now and they have invested considerable funds of their own. They can be considered fully committed to the company's success.
59%
MARKET:
PRODUCT:
COMPETITION:
There is a large market for cosmetics and the recent issues with microbeads have forced the industry to find alternative exfoliators, with natural alternatives coming to the fore.
Optiat's products receive good reviews and have been covered by a number of major press outlets, generating good publicity for the brand.
There are a number of competing brands with a particular focus on coffee grinds. Positioning and PR are important differentiators but there is a low barrier to entry for new entrants.
54%
PROFITABILITY:
CASHFLOW:
RETURNS:
Optiat's financial projections show good awareness of their cost centres with a reasonable and appropriately resourced growth plan.
There is a detailed set of cashflow projections and breakdown of the planned use of funds. Optiat has allowed some headroom but underperformance in sales could lead to some unplanned shortfall.
Optiat has identified some recent acquisitions of comparable companies that support its case for exit, but do deliver significant returns Optiat will need to exit at a high multiple of sales.


Conclusion

Despite their lack of experience the Founders have quickly built Optiat into a growing brand and business, successfully delivering a range of products that get good reviews from customers and the press.

This is a crowded marketplace and their ability to build and maintain a foothold in customers minds and on shelves will be crucial. To this end making hiring a skilled marketer a priority is a wise move.

Related Links

Crowdcube Pitch

www.optiat.co.uk

 

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