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Equus

Platform:
Crowdcube
Stage:
Expansion
Industry:
Retail
Location:
UK - London
Date Rated:
23/01/18
Raise:
£300,000
Equity:
12.5%
Valuation (Pre Money):
£2,100,000
Industry: Retail
Location: UK - London
Platform: Crowdcube
£300,000 Expansion
Valuation: £2,400,000
Date Rated: 18/01/18

MANAGEMENT

PRODUCT

INVESTMENT
Tax Status: EIS

Business Summary

Equus is an online retailer of equestrian clothing and tack. Operating since 2013 they have served over 14,000 customers to date with sales in 2017 reaching £600k. These funds will be used to increase the customer base and retention, and to develop an own-brand line of products.

Financial Overview

 

 

 

There is insufficient information available to provide a financial overview

 

 

55%
SKILLS:
EXPERIENCE:
COMMITMENT:
The Equus team have demonstrated their skills in building and growing the business to this point, but to support the planned growth the team should ideally have an experienced CMO on board.
The Founders are experienced and benefit from advisors from Jenson Solutions. They don't appear to have delivered any exits before, but have been part of companies seeing significant growth.
The Founders have been working together on Equus for some years now, though there are some other business activities that may be a distraction. Neither the Chairman nor the NED are listed at CH.
56%
MARKET:
PRODUCT:
COMPETITION:
There is a large market for equestrian goods that has been growing in value despite a significant fall in the number of riders.
Equus receives good reviews from its customers, demonstrated by a large customer base with a high repeat-order rate. An own-brand range could add further value.
There are a number of established competitors in this space, plus large retailers outside of the domain such as Amazon and Sports Direct that could take a more active interest.
There is insufficient information available to fairly rate this aspect of the business


Conclusion

Equus has established itself as a quality retailer, borne out by its significant turnover, high repeat-order rate and positive reviews. While the margin is slim, the company is EBITDA positive which will please interested investors. With plans to scale further, Equus would benefit from bringing an experienced CMO onto the team. Similarly, if an own-brand line is to be introduced product design and development skills will need to be sourced.

The fact that the company has had to admit it has missed its 2017 revenue target of £700k by as much as £100k, so shortly after the campaign was launched, does not build confidence in its ability to hit its £2m sales target in 2018.

Note: We have not received a business plan from Equus and therefore this rating is based on the information available within the Crowdcube pitch.

Related Links

Crowdcube Pitch

www.equus.co.uk

 

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