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Nayanacare

Platform:
Crowdcube
Stage:
Seed
Industry:
Health & Fitness
Location:
UK - East
Date Rated:
13/02/18
Raise:
£150,000
Equity:
10%
Valuation (Pre Money):
£1,350,000
Industry: Health & Fitness
Location: UK - East
Platform: Crowdcube
£150,000 Seed
Valuation: £1,500,000
Date Rated: 09/02/18

MANAGEMENT

PRODUCT

INVESTMENT
Tax Status: SEIS & EIS

Business Summary

Nayanacare aims to improve the care-at-home experience by offering integrated care-at-home solutions through a platform that integrates people, services and systems. Nayanacare has built the platform and recruited an initial supplier base. This round of investment will be mainly used to fund marketing and working capital.

Financial Overview

Date (y/e) Dec-18 Dec-19 Dec-20
Sales Dec-18£3,194,000 Dec-19£36,313,000 Dec-20£113,380,000
Gross Profit Dec-18£390,000 Dec-19£5,805,000 Dec-20£18,126,000
GP as % sales Dec-1812% Dec-1916% Dec-2016%
Overheads Dec-18£797,000 Dec-19£4,869,000 Dec-20£10,976,000
Operating Profit Dec-18-£407,000 Dec-19£936,000 Dec-20£7,150,000
OP as % sales Dec-18-13% Dec-193% Dec-206%
Closing Cash Dec-18£193,000 Dec-19£1,129,000 Dec-20£8,279,000

Note: This financial information has been sourced from the company on 09/02/2018. Financial data is NOT verified by Wheatfromchaff Ltd.
76%
SKILLS:
EXPERIENCE:
COMMITMENT:
The Founders have sufficient skills to launch the business but the company will be very dependent on them so further sales and marketing expertise is needed to achieve the ambitious growth plan.
The Founders have 5 years experience delivering Managed-Care. They know the industry well and will have the support of an experienced board of advisors.
Only one of the Founders seems to be full time and they have invested limited time and cash into the business to date. Although if they deliver the plan they could expect strong financial rewards.
48%
MARKET:
PRODUCT:
COMPETITION:
Given increasing demand, the global home care services market is projected to grow at a healthy rate through 2020 and in the UK alone the industry is already worth over £19bn.
Although the platform will not be launched until the funding is in place, the team already has over 140 registered self-employed carers and several suppliers on board.
There are many competing brands in the space but no one provides a complete solution across all the different kinds of care-at-home services, and this is Nayanacare's key differentiator.
38%
PROFITABILITY:
CASHFLOW:
RETURNS:
Sales projections look heroic and expected profit margins are low but the company will operate a very lean business model that could boost profitability if a high turnover is achieved.
As the Founder has stated, break-even could be achieved next year but this will be also dependent on raising two further rounds of investment to support the intended growth.
Although sales projections are aggressive and there is no proven traction yet, if even half the forecast is met, investors could expect still reasonable returns, and will benefit from SEIS in this round.


Conclusion

Given the recent reductions in state funding there are many providers at risk of failure in the industry and given the limited incentives to stay in the sector, it is difficult to attract the new investment required to create the extra capacity that will be needed soon to cope with the increasing demand.

Nayanacare aims to help reduce the providers' costs by providing a complete and integrated care-at-home solution while increasing opportunities for carers. However the platform has not launched yet and the business plan seems extremely ambitious, although the management team certainly has sufficient experience in the industry to develop the business.

Related Links

Crowdcube Pitch

www.nayanacare.com

 

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