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Monkey Lectric

Platform:
Crowdcube
Stage:
Seed
Industry:
Consumer Products
Location:
UK - South
Date Rated:
20/09/17
Raise:
£100,000
Equity:
10%
Valuation (Pre Money):
£900,000
Industry: Consumer Products
Location: UK - South
Platform: Crowdcube
£100,000 Seed
Valuation: £1,000,000
Date Rated: 18/09/17

MANAGEMENT

PRODUCT

INVESTMENT
Tax Status: EIS

Business Summary

Elite Natural Holdings Ltd. (ENH) have exclusive rights to sell MonkeyLectric bike lights in the UK until 2021 with a renewal for a further 3 years if sales targets are met. They are stocked by Argos, Halfords and Very.co.uk, among others. These funds will be used to market Monkey Lights.

Financial Overview

Date (y/e) Nov-18
Sales Nov-18£2,571,319
Gross Profit Nov-18£1,321,941
GP as % sales Nov-1851%
Overheads Nov-18£150,000
Operating Profit Nov-18£1,171,941
OP as % sales Nov-1846%
Closing Cash Nov-18-

Note: This financial information has been sourced from the company on 15/09/2017 or from public sources. Financial data is NOT verified by Wheatfromchaff Ltd.
40%
SKILLS:
EXPERIENCE:
COMMITMENT:
The ENH team is made up of two Sales Directors, though one does claim to have run a property business before providing some leadership experience.
Both Founders are young so have short career histories. What experience they do have is hard to tease out from their multiple LinkedIn profiles, though we note that Okobay is insolvent.
The Founders are both involved in 2 other businesses as a pair and a further 1 each, all apparently health-food related.
40%
MARKET:
PRODUCT:
COMPETITION:
The UK market for cycling accessories is worth over £100m, and lights are the most popular sub-category. But growth has been stagnating and Monkey Lights are an optional 'nice to have'.
Monkey Lights have been in production since 2011 and the manufacturer has been selling them in the UK on Amazon since May-12. In that time they have received positive reviews.
Alternative products are readily available on Amazon and Alibaba, threatening ENH on two fronts. Many guides are also available that would allow cyclists to build comparable systems themselves.
There is insufficient information available to fairly rate this aspect of the business


Conclusion

The fundamental issue facing investors here is that they are not investing in a business with its own products, IP and brand, but in a duo of young sales professionals that have secured the right to distribute one product for a fixed period of time. There is only one year of financials provided, no information on any strategy to build a sustainable business around this one contract, nor indeed how investors are supposed to get their money back.

Until there is some more clarity around these key points this is one to avoid.




Related Links

Crowdcube Pitch

www.monkeylectric.com

 

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