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Ginmeister Limited Investment Review - Dec 2016
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Status Update
- Since the first investment close at £955k in June 2016, a small number of investors have subscribed for equity to take the total capital raise to the £1m upper funding limit.
- Sales of £500k (22k 70cl bottles) were achieved for the financial year ending March 2016 (versus a budget of £484k).
- Progress for the current financial year has been impressive - sales of £571k for the year to date (April – October 2016) have been achieved, which is 17% ahead of budget. Management expects the full financial year (to March 2017) sales figure to be on target to achieve £1.14m sales for the year.
- EBITDA loss of £227k for the current financial year is larger than expected as the additional money raised has been deployed ahead of plan in extra sales staff and marketing.
- Gross Margin for the year to date of 51% compares favourably with budget (50%).
- The Company has successfully added new listings with large UK distributors (e.g. Matthew Clark), providing access to established on-trade customers, a key driver for domestic volumes.
- In the off-trade market, Pinkster has continued to grow the number of listings, with some high profile retailers (e.g. Majestic) taking the product.
- Pinkster has made solid progress in the international market to complement the initial domestic focus. It continues to develop exciting opportunities in the Middle East and a Pinkster Representative has recently been appointed in Australia.
Investment Overview
| Company name | Ginmeister Limited |
| Investment vehicle | UK Limited company |
| Principal business activity | Manufacture and sale of Gin |
| Growthdeck investors investment | £1,000,000 |
| Investment completion date (first close) | June 2016 |
| Growthdeck investors equity | 18.05% |
| Growthdeck investors protections | Investor Representative consent required for key company actions |
| Growthdeck involvement | Investor representative on Board monitoring performance |
Trading Performance
| Year End March (£'000) | 2015 Actual |
2016 Budget |
2016 Actual |
2017 Budget |
2017 Actual (YTD)* |
| Turnover | 169 | 484 | 500 | 1,114 | 571 |
| Cost of Sales | 100 | 218 | 224 | 540 | 281 |
| Gross Profit | 69 | 266 | 276 | 574 | 290 |
| Gross Profit (%) | 41% | 55% | 55% | 52% | 51% |
| Overheads | 202 | 439 | 452 | 661 | 517 |
| EBITDA | (133) | (173) | (176) | (87) | (227) |
* Management Accounts for Apr to Oct 2016
Cash Update
- The successful completion of the full funding round (£1m) has provided the Company with some additional cash headroom - a cash position of £218k was recorded at October 2016 month end.
- Management forecasts that the business will finish the current financial year (March 2017) with £250k of cash and turn cash generative in the following full financial year.
- It is not anticipated that the Company will require any additional equity funding in the near future albeit the Board will monitor the situation on a constant basis.
Exit Planning
- There are no updates to report in terms of exit planning. It is still anticipated that a trade sale to one of the drinks majors in a 2019/20 timeframe is the most likely liquidity event.
Summary
- The high quality Pinkster management team has performed exceptionally well since completion of the investment and trading performance remains ahead of budget.
- Growthdeck has not identified any reasons why the solid progress will not continue in the near term.
