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Boulder Hut

Health & Fitness
UK - North West
Date Rated:
Valuation (Pre Money):
Industry: Health & Fitness
Location: UK - North West
Platform: Crowdcube
£240,000 Seed
Valuation: £750,000
Date Rated: 21/08/17



Tax Status: SEIS & EIS

Business Summary

Boulder Hut is a climbing facility focused on bouldering across all grades with a particular emphasis on families and nurturing the next generation of climbers. Boulder Hut is negotiating the lease of the 17,000 square feet location and has agreed on a deferred payment plan with the wall builder. This round of investment will be used to build the wall and working capital.

Financial Overview

Date (y/e) Mar-18 Mar-19 Mar-20 Mar-21 Mar-22
Sales Mar-18- Mar-19£388,208 Mar-20£523,595 Mar-21£592,053 Mar-22£622,401
Gross Profit Mar-18-£22,386 Mar-19£289,710 Mar-20£425,097 Mar-21£493,555 Mar-22£523,903
GP as % sales Mar-18- Mar-1975% Mar-2081% Mar-2183% Mar-2284%
Overheads Mar-18£62,708 Mar-19£230,045 Mar-20£251,460 Mar-21£264,857 Mar-22£277,754
Operating Profit Mar-18-£85,094 Mar-19£59,665 Mar-20£173,637 Mar-21£228,698 Mar-22£246,149
OP as % sales Mar-18- Mar-1915% Mar-2033% Mar-2139% Mar-2240%
Closing Cash Mar-18£70,868 Mar-19£77,084 Mar-20£235,656 Mar-21£424,494 £608,808

Note: This financial information has been sourced from the company on 21/08/2017. Financial data is NOT verified by Wheatfromchaff Ltd.
The Founders have significant management expertise but the team lacks sales and marketing skills and the company will be heavily dependent on one of the Founders as the other has another job.
The management team has the right experience to develop the product and significant startup knowledge but Boulder Hut seems a big challenge without the help of any experienced advisors.
One of the Founders will be full-time and her salary will remain low across the forecast. Also, they have invested £15k to date and other £25k in Dec-17 are planned.
Indoor walls are getting popular and the market is growing steadily. The team knows well the company's addressable market and they intend to attract a wider audience.
Although people have shown interest in the product, the wall will not be in place until Apr-18 and the Founders are still negotiating the lease for the first location.
The team intends to compete by positioning the wall in a location where there are few competitors and aims to gain market share by providing a meeting destination for the whole family.
The forecast has reasonable growth assumptions but the marketing spend seems limited and the expansion does not appear to be included in the financial projections.
The cash flow forecast suggests there is sufficient headroom to protect against any revenue shortfall if the team can deliver the product at no extra cost.
Although the Founders intend to pay dividends from year 3, the expected expansion could minimize these returns and reasonable returns seem only plausible with the 4 walls.


Boulder Hut has two committed Founders with significant climbing experience. Although the company will be extremely dependent on the Founder that is full-time, they have stated that the other Founder will help in the evenings and weekends without any salary.

The Founders have provided with a forecast for the first wall but it would be reassuring how further walls will affect these projections, the intentions are to fund the next sites by raising debt funding helped by the business' cash, therefore if the projections are not delivered the plan could be delayed and the potential returns lowered.

Investors in this project should remain patient as an exit could take significant time to be achieved but they should also note that the company is offering the most efficient tax relief in this round.

Related Links

Crowdcube Pitch


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