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Press London

Platform:
Crowdcube
Stage:
Expansion
Industry:
Food & Drink
Location:
UK - London
Date Rated:
28/11/17
Raise:
£1,000,000
Equity:
10%
Valuation (Pre Money):
£9,000,000
Industry: Food & Drink
Location: UK - London
Platform: Crowdcube
£1,000,000 Expansion
Valuation: £10,000,000
Date Rated: 22/11/17

MANAGEMENT

PRODUCT

INVESTMENT
Tax Status: EIS

Business Summary

PRESS London is a health food and nutrition business specialising in cold-pressed juices, snacks, smoothies, soups and supplements. PRESS has already opened three stores in London and serves over 60k customers a month through their stores, website and over 250 retail partners. This round of investment will be mainly used to fund marketing and to support the European expansion.

Financial Overview

Dec-21
Date (y/e) Dec-17 Dec-18 Dec-19 Dec-20 Dec-21
Sales Dec-17£2,142,000 Dec-18£3,917,000 Dec-19£5,450,000 Dec-20£8,658,000 Dec-21£11,921,000
Gross Profit Dec-17£937,000 Dec-18£1,605,000 Dec-19£2,240,000 Dec-20£3,589,000 Dec-21£4,961,000
GP as % sales Dec-1744% Dec-1841% Dec-1941% Dec-2041% Dec-2142%
Overheads Dec-17£1,394,000 Dec-18£1,639,000 Dec-19£1,855,000 Dec-20£2,803,000 Dec-21£3,716,000
Operating Profit Dec-17-£457,000 Dec-18-£34,000 Dec-19£385,000 Dec-20£786,000 Dec-21£1,245,000
OP as % sales Dec-17-21% Dec-18-1% Dec-197% Dec-209% Dec-2110%
Closing Cash Dec-17- Dec-18- Dec-19- Dec-20- -

Note: This financial information has been sourced from the company on 22/11/2017. Financial data is NOT verified by Wheatfromchaff Ltd.
63%
SKILLS:
EXPERIENCE:
COMMITMENT:
The management team covers all the roles required at this stage but further management expertise would be beneficial given the challenging expansion plans.
The team is quite young but they have gained significant commercial and leadership experience and they are also working with a number of external advisors with industry knowledge.
The Founders have invested three years in the business and the management team will be investing £250k in this investment round.
52%
MARKET:
PRODUCT:
COMPETITION:
The Juice and smoothie market is worth £2.4bn in the UK alone and consumers are shifting to non-sugar options, a trend that represents a good opportunity for the company.
The company has achieved significant commercial traction in a few years and has the support of over 50 industry ambassadors and influencers that should continue to increase brand awareness.
The industry is dominated by one main player and over the last few years, many new juice and smoothie start-ups have entered the sector making it difficult to gain grab market share.
47%
PROFITABILITY:
CASHFLOW:
RETURNS:
This round should be enough to support growth, therefore the sales projections seem reasonable but given the pace of intended expansion it may be challenging to maintain profit margins.
There is insufficient information available to fairly rate this aspect of the business
Investors in this round could see around a 3-5 times return if the team can deliver the forecast within four years.


Conclusion

The management team has created significant brand awareness since inception in the UK and is already negotiating European partnerships to start international expansion. The market is very crowded but PRESS London has a wide offering at competitive prices that should help the business to gain market share. If the team is able to effectively increase the number of stockists and maintain its profit margins, it could easily become an attractive acquisition target.

Investors should note then that if the forecast growth is not achieved as planned and further funds are needed to support the expansion, given the nominee account structure, investors investing less than £25k could miss out as the Crowdcube nominee operates on a first-come, first-served basis.

Related Links

Crowdcube Pitch

press-london.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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