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FullClear

Platform:
Crowdcube
Stage:
Expansion
Industry:
Business Services
Location:
UK - Scotland
Date Rated:
20/11/17
Raise:
£250,000
Equity:
9.09%
Valuation (Pre Money):
£2,500,275
Industry: Business Services
Location: UK - Scotland
Platform: Crowdcube
£250,000 Expansion
Valuation: £2,750,275
Date Rated: 16/11/17

MANAGEMENT

PRODUCT

INVESTMENT
Tax Status: SEIS & EIS

Business Summary

FullClear is a safe and eco-friendly beer line cleaning solution company and its anti-bacterial properties are more effective than traditional chemicals helping maintain the best beer quality and reducing the cleaning cycle from weekly to monthly. FullClear already has some leading bar operators on board and has a three-year partnership agreement with a leading beer management company. This round of investment will be mainly used to support growth via marketing and a sales team and to fund the development of an IT platform.

Financial Overview

Dec-21
Date (y/e) Dec-17 Dec-18 Dec-19 Dec-20 Dec-21
Sales Dec-17£55,658 Dec-18£622,972 Dec-19£2,765,642 Dec-20£5,038,218 Dec-21£7,361,895
Gross Profit Dec-17£20,160 Dec-18£338,766 Dec-19£1,520,574 Dec-20£2,832,926 Dec-21£4,190,220
GP as % sales Dec-1736% Dec-1854% Dec-1955% Dec-2056% Dec-2157%
Overheads Dec-17£278,048 Dec-18£480,518 Dec-19£704,786 Dec-20£994,407 Dec-21£1,265,057
Operating Profit Dec-17-£257,888 Dec-18-£141,752 Dec-19£815,788 Dec-20£1,838,519 Dec-21£2,925,163
OP as % sales Dec-17-463% Dec-18-23% Dec-1929% Dec-2036% Dec-2140%
Closing Cash Dec-17£1,032 Dec-18£63,377 Dec-19£642,228 Dec-20£2,418,621 £4,785,377

Note: This financial information has been sourced from the company on 16/11/2017. Financial data is NOT verified by Wheatfromchaff Ltd.
65%
SKILLS:
EXPERIENCE:
COMMITMENT:
The Founder has significant management and marketing expertise and the sales and technical team will be strengthened after this round to support the intended growth.
Although the industry is new to the Founder, he has significant experience launching new products for large companies and he has the support of a strong advisory board to help him.
Current shareholders have invested about £300k and the Founder still has a 34.6% stake in the business, so if successful, he could expect a substantial financial reward.
75%
MARKET:
PRODUCT:
COMPETITION:
FullClear is targeting over 200k licensed venues only in the UK and its addressable market, the beer line chemical segment, is worth about £200m.
The product has already passed satisfactory tests and the company has a few customers. The strategic partnership with Vianet should help to increase exposure within the industry.
FullClear product has achieved high efficacy reducing the microbial load and has two patents pending; non-toxicity and non-corrosiveness make the offering even more competitive.
70%
PROFITABILITY:
CASHFLOW:
RETURNS:
Although the forecast is challenging, the existing key accounts and sales pipeline plus the partnership with Vianet could provide enough traction to achieve sales projections.
The recurrent revenue model will help to strengthen the company's cash position over time and this round of investment provides reasonable headroom to achieve break-even by 2019.
This could be a disruptive product in this market, if there are no major delays and sales projections are met, a ten-fold return seems achievable within five years.


Conclusion

The Founder has launched a competitive product that appears poised to disrupt the beer line cleaning market and grow significant market share once the right sales team is put in place.

If the team is able to maintain low overheads, healthy profit margins could be expected and the business should become an attractive acquisition target if the patents are finally approved.

Given that the company has raised over £87k to date and was offering only £50k of SEIS allowance on a first come first served basis, new investors only will be able to benefit from the EIS allowance.

Related Links

Crowdcube Pitch

www.fullclear.com

 

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Wheatfromchaff does not accept any liability whatsoever for any direct or consequential loss however so arising, directly or indirectly, from any use of this report nor its contents. Investors may receive back less that they invested as investments may fall as well as rise in value. Investors should obtain independent advice based on their own circumstances before making investment decisions. By accepting this report you agree to be bound by the foregoing limitations.

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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