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Poppys Picnic

Platform:
Crowdcube
Stage:
Expansion
Industry:
Consumer Products
Location:
UK - West
Date Rated:
05/02/18
Raise:
£350,000
Equity:
8.03%
Valuation (Pre Money):
£4,008,655
Industry: Consumer Products
Location: UK - West
Platform: Crowdcube
£350,000 Expansion
Valuation: £4,358,655
Date Rated: 31/01/18

MANAGEMENT

PRODUCT

INVESTMENT
Tax Status: SEIS

Business Summary

Poppy's Picnic makes and sells raw dog food through independent retailers and through its own website (with a subscription option). They have shipped over 380,000 meals to date with monthly revenue as high as £70k. These funds will be used to move production into a larger facility, launch a raw cat food line and to pursue the wholesale market.

Financial Overview

Date (y/e) 2017 2018 2019
Sales 2017£429,644 2018£2,331,502 2019£6,569,381
Gross Profit 2017£247,526 2018£1,502,820 2019£4,311,604
GP as % sales 201758% 201864% 201966%
Overheads 2017£234,488 2018£866,306 2019£1,058,860
Operating Profit 2017£13,038 2018£636,514 2019£3,252,744
OP as % sales 20173% 201827% 201950%
Closing Cash 2017- 2018- 2019-

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.
62%
SKILLS:
EXPERIENCE:
COMMITMENT:
Poppy's Picnic's team are very talented marketing professionals and while they are supported by production partners it would be good to see these skills on the management team.
The team are fairly experienced and have formed a number of companies before, though pet food is a markedly new direction for them.
The team have been working on Poppy's Picnic for some time now and should be well motivated to see it succeed.
73%
MARKET:
PRODUCT:
COMPETITION:
The pet food market is large and the raw segment is growing at an impressive rate as concerns over pet health and well-being increase.
Poppy's Picnics have proven very popular, with £7k in the first month of trading increasing up to £70k. Geographic expansion and new product lines will increase the sales potential.
There are a number of competing brands focusing on raw foods, and some offering subscription services or cat foods. But Poppy's are aware of their competition and have great branding.
52%
PROFITABILITY:
CASHFLOW:
RETURNS:
While the figures that have been shared with the crowd are light on details, the business has been running profitably and growth appears to be based on a well thought-out plan.
There is insufficient information available to fairly rate this aspect of the business
With established profits investors may be more willing to invest. Pre-emption rights come with a higher price-tag of £5k, but without any future rounds planned these may not be necessary.


Conclusion

Poppy's Picnic has launched its line of dog foods to a fantastic reception and has built on that, growing the business to up to £70k/month revenue, while keeping overheads low enough to run profitably. If all goes according to plan investors stand a good chance of seeing significant returns when the company exits. The target of £45m in sales in 5 years time is undoubtedly ambitious and will require maintaining a high CAGR, but the business should have sufficient cash available to fund that level of growth if it can be executed effectively. Building a £50m turnover business in 5 years also assumes limited effective competition which maybe the case now but this could change should any of the established non-raw pet food players decide to make a major move into the market themselves, and decide to build rather than buy Poppy's Picnic.

Related Links

Crowdcube Pitch

www.poppyspicnic.co.uk

 

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