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Business Services
UK - North West
Date Rated:
Valuation (Pre Money):
Industry: Business Services
Location: UK - North West
Platform: Crowdcube
£500,000 Expansion
Valuation: £40,650,407
Date Rated: 09/11/17



Tax Status: None

Business Summary is a UK parcel delivery comparison website offering its customers a competitive alternative to the Post Office while enabling them to send anything, from a small packet to a large parcel, to destinations throughout the UK and internationally. has over 800k customers and has achieved £56m in sales last year. This round of investment will be used to strengthen the balance sheet paying down outstanding preference shares.

Financial Overview

Date (y/e) Mar-17 Mar-18 Mar-19 Mar-20 Mar-21
Sales Mar-17£56,268,000 Mar-18£68,600,000 Mar-19£82,320,000 Mar-20£98,784,000 Mar-21£118,541,000
Gross Profit Mar-17£8,910,000 Mar-18£10,500,000 Mar-19£12,348,000 Mar-20£14,818,000 Mar-21£17,781,000
GP as % sales Mar-1716% Mar-1815% Mar-1915% Mar-2015% Mar-2115%
Overheads Mar-17£7,041,000 Mar-18£8,000,000 Mar-19£9,348,000 Mar-20£11,068,000 Mar-21£13,081,000
Operating Profit Mar-17£1,869,000 Mar-18£2,500,000 Mar-19£3,000,000 Mar-20£3,750,000 Mar-21£4,700,000
OP as % sales Mar-173% Mar-184% Mar-194% Mar-204% Mar-214%
Closing Cash Mar-17£2,988,000 Mar-18£1,676,000 Mar-19£3,471,000 Mar-20£5,947,000 £9,130,000

Note: This financial information has been sourced from the company on 09/11/2017. Financial data is NOT verified by Wheatfromchaff Ltd.
There is a strong team in place covering all the roles required and they have already demonstrated their skills in building the business to its current stage.
There is an experienced team with different backgrounds and significant industry knowledge and the CEO has evidence of being successful in other companies.
This round of investment will pay down outstanding preference shares, but the team has invested many years in the business and expect to commit key members by granting new share options.
The market is worth over £1.5bn market in the UK alone and the business is well poised to benefit from the consumer and micro business segments.
Given the high volume of orders, there are issues about customer service but the company aims to improve it thanks to cross-selling synergies from National Pallets.
There are competitive players in the market but Parcel2go offers a full range of national and international destinations while covering the major platforms.
Parcel2Go' sales projections are reasonable as the team is reducing the business' gross margin in order to gain further market share but the profit margins will remain low.
There is limited headroom to protect against any shortfall but customers pay the business on order and the couriers are paid on average 30 days later adding cash flow flexibility.
The most likely exit may be an IPO but investors in this round should not expect more than modest returns, recovering their investment plus potential dividends.


Parcel2Go has grown steadily in recent years and is generating cash, therefore this round is not so much expansion capital but rather serves to consolidate the company's finances and build brand awareness. Investors in this round should note that the investment will not have any tax relief, however the company is profitable and dividends are likely, therefore patient investors could still achieve meaningful returns over the long-term.

Related Links

Crowdcube Pitch


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