The Croydon based sauce company has released more equity following discussions with key investors.
The details of the 40% increase in the equity offered were detailed in a note on the Crowdcube platform. The equity release shows that potential investors felt the Great British Sauce Company were overvaluing themselves in the initial valuation.
The recent change in equity now values the business at £1 million with a price-to-earnings ratio of 13.47 using 2018 estimates from their financial snapshot.
This valuation may still seem a little rich for some investors given that Premier Foods, who own a number of established household brands, are valued at only PEe 5.12 based on next year’s earnings.
That said, the potential for growth is significant and their revenue projections are strong. There is little debt in the business which is comprised of a £18,000 loan from the directors.
The background of the directors bodes well for the company, a solid mix of food production and marketing provides strength in the key areas this company needs to be successful.
