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Oh...My! Kidswear

Platform:
Crowdcube
Stage:
Expansion
Industry:
Retail
Location:
UK - London
Date Rated:
20/09/17
Raise:
£300,000
Equity:
23.08%
Valuation (Pre Money):
£999,827
Industry: Retail
Location: UK - London
Platform: Crowdcube
£300,000 Expansion
Valuation: £1,299,827
Date Rated: 18/09/17

MANAGEMENT

PRODUCT

INVESTMENT
Tax Status: SEIS & EIS

Business Summary

Oh...My! Kidswear is a childrenswear brand for little girls ages 4-12 years with multi-channel distribution, including e-commerce, wholesale, Mother’s home parties and in-store pop-ups. Oh...My! Kidswear launched its first collection in August 2015 and has grown into a fashion brand with sales of £153k to date. This round of investment will be mainly used to hire the team to support the business operations, to fund the marketing strategy and to diversify revenue streams.

Financial Overview

Date (y/e) Apr-18 Apr-19 Apr-20
Sales Apr-18£247,500 Apr-19£441,250 Apr-20£680,000
Gross Profit Apr-18£131,576 Apr-19£234,577 Apr-20£361,501
GP as % sales Apr-1853% Apr-1953% Apr-2053%
Overheads Apr-18£71,860 Apr-19£71,860 Apr-20£71,860
Operating Profit Apr-18£59,716 Apr-19£162,717 Apr-20£289,641
OP as % sales Apr-1824% Apr-1937% Apr-2043%
Closing Cash Apr-18- Apr-19- Apr-20-

Note: This financial information has been sourced from the company on 18/09/2017. Financial data is NOT verified by Wheatfromchaff Ltd.
68%
SKILLS:
EXPERIENCE:
COMMITMENT:
The Founders have proven product development expertise and the rest of the management team complement them with the required sales and marketing skills.
The Founder has successfully launched other brands and has significant e-commerce experience and all the team has a deep industry knowledge.
Although most of the team is still part-time, the Founders have invested significant time into the business and they intend to remain on low salaries the next three years.
58%
MARKET:
PRODUCT:
COMPETITION:
Although kids clothing only accounts for 12% of the overall UK apparel market the childrenswear market is worth over £5bn and the company is already addressing international markets.
There are few testimonials about the product but the brand is getting traction and has received very good press being already present in several global retailers.
The fashion industry is really tough and many players are targeting this attractive segment with the ability to offer similar products but the business intends to compete with affordable prices.
37%
PROFITABILITY:
CASHFLOW:
RETURNS:
The forecast is reasonable, increasing volumes and the intended channel mix should help to improve profit margins but further marketing support seems needed to drive growth.
There is insufficient information available to fairly rate this aspect of the business
Given the expected growth, investors should only expect returns over the long-term and at least a £10k investment will be needed to secure pre-emption rights.


Conclusion

The management team has created significant brand awareness since inception and has already secured an international presence with renowned retailers. The market is certainly competitive and crowded, but high-quality products at affordable prices should help the business to gain market share. The company is prioritising the online sales channel and shows a promising 9% of customers buying back from the pop-ups. The business could therefore become attractive if the team is able to increase the number of stockists while improving profit margins through the e-commerce strategy.

Investors in this round should however remain patient as meaningful returns seem only achievable over the long-term.

Related Links

Crowdcube Pitch

www.ohmykidswear.com

 

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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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