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Moody Delivery

Platform:
Crowdcube
Stage:
Expansion
Industry:
Food & Drink
Location:
UK - North West
Date Rated:
30/11/17
Raise:
£150,000
Equity:
16.67%
Valuation (Pre Money):
£749,820
Industry: Food & Drink
Location: UK - North West
Platform: Crowdcube
£150,000 Expansion
Valuation: £899,820
Date Rated: 29/11/17

MANAGEMENT

PRODUCT

INVESTMENT
Tax Status: SEIS & EIS

Business Summary

Moody Burgers is a restaurant and takeaway chain delivering burgers to customers via their online ordering system as an alternative to traditional pizza and Chinese takeaway. Moody Burgers has two sites, one in Swindon and another in Worcester and has generated over £200k of sales from their website. This round of investment will be used to expand their delivery service, to launch two additional sites and to fund marketing.

Financial Overview

Date (y/e) Dec-17 Dec-18 Dec-19 Dec-20
Sales Dec-17£321,429 Dec-18£2,221,071 Dec-19£4,431,964 Dec-20£5,739,107
Gross Profit Dec-17£196,071 Dec-18£1,354,854 Dec-19£2,703,498 Dec-20£3,500,855
GP as % sales Dec-1761% Dec-1861% Dec-1961% Dec-2061%
Overheads Dec-17£252,906 Dec-18£1,268,028 Dec-19£2,272,478 Dec-20£2,831,770
Operating Profit Dec-17-£78,085 Dec-18£1,826 Dec-19£296,020 Dec-20£514,085
OP as % sales Dec-17-24% Dec-180% Dec-197% Dec-209%
Closing Cash Dec-17£115,594 Dec-18£42,940 Dec-19£355,297 Dec-20£1,040,913

Note: This financial information has been sourced from the company on 29/11/2017. Financial data is NOT verified by Wheatfromchaff Ltd.
81%
SKILLS:
EXPERIENCE:
COMMITMENT:
The Founders have proven financial and management expertise and they have built a team with the required skills around them to move the business to the next stage.
The management team has a clear understanding of the hospitality sector and extensive commercial and operational experience in the industry.
The Founders are investing £50k in this round and with limited time, they have fully developed the brand, marketing, product and operations.
51%
MARKET:
PRODUCT:
COMPETITION:
The UK home delivery market is worth £5.5bn growing 5-10% every year and the demand for home-delivered, restaurant-quality meals is worth about £3.6bn.
The company has two operational sites with contracts with JustEat and Deliveroo's in place, and in a short period of time the customer database has grown to over 11k.
The company aims to benefit from the rapid growth of the home delivery industry but emerging and established players could easily replicate their restaurant-quality burger delivery model.
49%
PROFITABILITY:
CASHFLOW:
RETURNS:
Given the sales to date, the forecast seems ambitious unless the next sites are set-up very rapidly and net profit margins are expected to remain below 10%.
This investment will provide enough cash to accelerate growth, but the company has limited headroom to deliver their stated plan unless they overfund by a further £100k.
The valuation seems reasonable and investors could benefit from the most efficient tax scheme. If the forecast is achieved, investors in this round could expect over a five-fold return.


Conclusion

Moody Delivery has already shown evidence of commercial traction with two sites trading at an average of £5-6k sales per week every site and website sales have generated about 45% of the total sales. The Founders have however not secured the future locations yet and this may well delay the forecast revenue ramp-up and if the profits cannot support the growth to ten sites, further funds will be needed in terms of equity or debt finance to achieve the plan.

The business is also suitable for franchising but this has not been tested yet and it may become a strong challenge for the team to combine rapid growth whilst maintaining franchisee and product quality.

Related Links

Crowdcube Pitch

www.moodyburgers.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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