Need some help? Close Help

White Car

Platform:
Crowdcube
Stage:
Expansion
Industry:
Leisure & Tourism
Location:
UK - London
Date Rated:
20/11/17
Raise:
£850,000
Equity:
12.68%
Valuation (Pre Money):
£5,853,470
Industry: Leisure & Tourism
Location: UK - London
Platform: Crowdcube
£850,000 Expansion
Valuation: £6,703,470
Date Rated: 17/11/17

MANAGEMENT

PRODUCT

INVESTMENT
Tax Status: None

Business Summary

White Car offers a simple way to rent a quality vehicle for a flat-rate charge. The service is currently available at Heathrow, Gatwick, Manchester and Edinburgh airports and has generated over £600k since launching last July. These funds will be used to expand the business to new locations.

Financial Overview

Year 5
Date (y/e) Year 1 Year 2 Year 3 Year 4 Year 5
Sales Year 1£1,163,000 Year 2£8,116,000 Year 3£23,050,000 Year 4£45,829,000 Year 5£74,359,000
Gross Profit Year 1£811,000 Year 2£6,296,000 Year 3£17,855,000 Year 4£35,587,000 Year 5£58,029,000
GP as % sales Year 170% Year 278% Year 377% Year 478% Year 578%
Overheads Year 1£1,603,000 Year 2£5,554,000 Year 3£13,587,000 Year 4£27,409,000 Year 5£44,500,000
Operating Profit Year 1-£809,000 Year 2£666,000 Year 3£4,136,000 Year 4£7,935,000 Year 5£13,191,000
OP as % sales Year 1-70% Year 28% Year 318% Year 417% Year 518%
Closing Cash Year 1- Year 2- Year 3- Year 4- -

Note: This financial information has been sourced from the company on 14/11/2017 or from public sources. Financial data is NOT verified by Wheatfromchaff Ltd.
58%
SKILLS:
EXPERIENCE:
COMMITMENT:
The CEO has received awards for his leadership, but there is less information available about other key team members. Most notably, there is no information about the current Marketing function.
The CEO has had a long career with significant experience at senior levels and he has achieved multiple exits before. An extensive network of NED's provides further experience to call on.
The CEO has committed up to two years to the project on zero salary but has received loans of £55k for expenses and will be paid £125k pa so his financial risk is minimal.
64%
MARKET:
PRODUCT:
COMPETITION:
The car rentals market is large and still growing strongly. White Car has shown an early ability to identify and engage its customers - enough that some of them have joined the board!
The service is operational and receives good reviews, both from renters and leasers. White Car has attracted a significant number of customers to date and plans to expand.
White Car is gaining traction with its service but there are somewhat similar competitors and White Car's rapid launch also demonstrates a lower barrier to entry for new competition.
57%
PROFITABILITY:
CASHFLOW:
RETURNS:
While the marketing budget seems small and projected growth rapid, we note that CAC appears to increase over time and White Car is generating a good ROI for its advertising spend.
There is insufficient information available to fairly rate this aspect of the business
If the projected revenues can be achieved then investors will stand a good chance of seeing significant returns. This is also supported by recent acquisitions in this space.


Conclusion

White Car has returned to Crowdcube after its initial round last May. Since then the company has launched and started to generate revenues in a very impressive time frame. It has expanded to multiple sites in the UK and now will begin to expand further afield. Despite the low marketing budgets, that expansion does appear to be adequately resourced taking in to account current KPIs. That said it would be re-assuring if these assumptions had been made by an experienced marketeer, who is yet to be hired.

There is unfortunately little information available about the management team, but the CEO is experienced and has demonstrated his ability in various previous roles.

Related Links

Crowdcube Pitch

www.white.car

 

Right To Reply

Are you the entrepreneur? If you would like to publish a comment on our rating, please contact the ratings team.

Latest Forum Comments

Read All Comments

Disclaimer

The views and opinions expressed on this bulletin board are the sole property and responsibility of the author. Neither Crowdrating nor Wheatfromchaff Ltd, nor any of the directors or officers of Wheatfromchaff Ltd accept any responsibility or liability for them. Readers should be aware that comments do not constitute investment advice and may be inaccurate. Please seek to verify and take advice on all comments before relying on them in the context of any investment decisions you may make. if you wish to use the bulletin board please be aware you are accepting full responsibility and liability for what you write. Please look here for more specific rules we impose on people using our bulletin boards. We moderate all bulletin boards and we reserve the right not to publish your comments.

Disclaimer

Your capital is at risk when you invest in shares and debt securities. You can lose some or all of your money and may not be able to realise your investment. Therefore you should should never invest more than you can afford to lose. If in doubt about the suitability or tax implications of any investment, please seek independent financial advice. 

Information published on this website and any other reports or ratings published on CrowdRating.co.uk or by Wheatfromchaff Limited (trading as Wheatfromchaff) have been prepared by us in the United Kingdom for information purposes only. Wheatfromchaff Ltd is Authorised and Regulated by the Financial Conduct Authority FRN: 751017. 

No content on this website or on any reports or ratings published on this website nor any copy of it, nor any other reports or copies of them published on CrowdRating.co.uk may be reproduced, redistributed or copied in whole or in part for any purpose. Any and all reports have been approved by, and are being distributed in the UK and the European Union (EU) only and are not to be distributed in any other jurisdictions where their distribution may be restricted by law and persons into whose possession this or any other reports come should inform themselves about and observe such restrictions.

This report and any other reports published on CrowdRating.co.uk do not constitute an offer or a solicitation to buy or sell any securities referred to herein. It should not be so construed, nor should it or any part of it form the basis of, or be relied on in connection with, any contract or commitment whatsoever. The information on this website or in reports or ratings published by Wheatfromchaff, or on which this or any other reports are based, has been obtained from sources that Wheatfromchaff believes to be reliable and accurate, and in accordance with COBS 2.4 of the FSA Handbook we have verified it to the best of our ability. However, it has not been independently verified and no representation or warranty, express or implied, is made as to the accuracy or completeness of any information obtained from third parties. The information or opinions are provided as at the date of this report or any other report publication dates and are subject to change without notice. The information and opinions provided in this and any other reports take no account of the investors/ individual circumstances and should not be taken as specific advice on the merits of any investment decision. Investors should consider any or all of the reports or ratings we publish as only a single factor in making any investment decisions.  

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

© Wheatfromchaff Ltd All Rights Reserved February 2017