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EcoPow3r

Platform:
Crowdcube
Stage:
Seed
Industry:
Environmental & Ethical
Location:
UK - South West
Date Rated:
29/01/18
Raise:
£250,000
Equity:
10.53%
Valuation (Pre Money):
£2,124,169
Industry: Environmental & Ethical
Location: UK - South West
Platform: Crowdcube
£250,000 Seed
Valuation: £2,374,169
Date Rated: 24/01/18

MANAGEMENT

PRODUCT

INVESTMENT
Tax Status: None

Business Summary

ECOPOW3R is an off-grid power company aiming to provide affordable, clean and reliable power to rural communities in Africa on a 24-hour and Pay-As-You-Go basis through a containerised solar solution. EcoPow3r has successfully completed the design, development and testing phase in 2017. This round of investment will be used to install 6 containers to connect over 5k people.

Financial Overview

Dec-22
Date (y/e) Dec-18 Dec-19 Dec-20 Dec-21 Dec-22
Sales Dec-18£67,040 Dec-19£1,392,000 Dec-20£3,076,000 Dec-21£5,322,000 Dec-22£6,316,000
Gross Profit Dec-18£4,140 Dec-19£1,111,000 Dec-20£2,455,000 Dec-21£4,247,000 Dec-22£5,041,000
GP as % sales Dec-186% Dec-1980% Dec-2080% Dec-2180% Dec-2280%
Overheads Dec-18£618,480 Dec-19£666,000 Dec-20£683,000 Dec-21£700,000 Dec-22£717,000
Operating Profit Dec-18-£622,110 Dec-19£344,000 Dec-20£1,551,000 Dec-21£3,167,000 Dec-22£3,875,000
OP as % sales Dec-18-928% Dec-1925% Dec-2050% Dec-2160% Dec-2261%
Closing Cash Dec-18- Dec-19- Dec-20- Dec-21- -

Note: This financial information has been sourced from the company on 24/01/2018. Financial data is NOT verified by Wheatfromchaff Ltd.
87%
SKILLS:
EXPERIENCE:
COMMITMENT:
There is a strong team in place covering all the roles needed and it has the expertise required to further develop the product and scale the business.
The Founders have significant management experience and industry knowledge. They will be also supported by an experienced Chairman and a Finance Director.
The Founders have invested a substantial amount of time into the business and they could expect a handsome financial reward.
66%
MARKET:
PRODUCT:
COMPETITION:
Although the company's addressable market in Rwanda is not large, the market for mini off-grid solutions is expected to grow rapidly over the next 10 years.
EcoPow3r's product has been tested in South Africa but there is no reliable data available to date upon which to base assumptions as to how it will work in the long term in Rwanda.
Although there are many players in the industry, the high demand and a differentiated offering should help EcoPow3r to grab market share.
62%
PROFITABILITY:
CASHFLOW:
RETURNS:
Sales projections seem realistic and the profit margins could improve rapidly as the team operates a very lean overhead model without the need for a high marketing budget.
There is insufficient information available to fairly rate this aspect of the business
If the forecast is met, investors in this round could expect to recover their investment with the intended dividends alone and if an exit is achieved, reasonable returns are plausible.


Conclusion

Less than 15% of Rwanda's population has access to electricity and the country is in urgent need of an alternative power source so as not to rely on highly polluting diesel fuel. Furthermore increased access to electricity should help the country achieve the economic growth that would in turn lead to an increasing power requirement. A truly virtuous circle is possible.

By way of potential upside, the management team has also planned a blockchain payment solution that should further increase the size of the addressable market, given the high number of people without bank facilities currently.

However, investors in this round should note that the company has not secured any tax relief to date and further investment rounds will dilute their shareholding if they do not follow on.

Related Links

Crowdcube Pitch

www.eco-positive.co.uk

 

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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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