CANDY HERO LTD

Other

Funds Requested

£50,000.00

Offered so far

£0.00

Loan term

48 MONTHS

Auction Closed

2014-07-18

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About the Business

Company Name: CANDY HERO LTD Company Number: 06776369
Business Type: Other Years Trading: 4-5 years
Business Location: BAILDON

About the Risk

Risk rating

C

Default rate

13.30%

Bad debt rate

5.47%

About the Security

Security Offered:

1st Charge Residential Property

Est. Equity: 0.00

Risk Indicators Identified:

Important Files

Who are we?

Candy Hero- Website

Candy Hero was established in West Yorkshire in December 2008 with a simple mission to collect some of the world's greatest confectionery and supply it to the UK, Europe and beyond.

Since starting as a small side project comprising just 20 caffeine candy product lines stored in a cupboard within a web development design agency, with ourselves as our greatest customers, we have gone from strength to strength.

  • In 2009 we opened our online shop at candyhero.com.
  • In 2010 we doubled our range, finally breaking out of the constraints of the cupboard.
  • In 2011 we injected capital and expanded our range once more, moved into our very first warehouse had some great Christmas sales.
  • In 2012 we moved to a larger warehouse and worked towards opening our first high street store in Leeds, which opened in October 2012.
  • In 2013 we opened our second store in the bustling city centre of York, expanded our warehouse to over 5,000 sq ft, grew the product range yet again and opened a warehouse shop with computerised order points and instant order picking.

During our short history we have diversified and added various ranges, nay, paradigms of candy itself! We now stock buckets of mainstream American candy, British retro sweets, Scandinavian candy, Jelly Belly, licensed computer game and TV candy, unique gifts, and other novelty and specialist items. Plus, our original offering of energy products is still going strong. We continue to add new carefully selected products to our line-up, putting us in a position to serve a wider range of customers and the wider needs of our existing customers.

As well as selling to our sweet-tooth consumers, we have opened up other channels to sell our wonderful range of candy. We help make weddings and parties more fun and colourful. We cater for bizarre corporate requests with near impossible deadlines and always exceed expectations. We import containers direct to our warehouse which enables us to sell efficiently to other retail businesses. Over 20% of our sales are now wholesale and this channel is growing rapidly.

Currently, we are projected to make annual gross sales of £1.8m made up of average transactions of around £7, equating to over 250,000 individual candy sales per year.

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Loan Offers

What is the loan for?

The loan is to be initially circulated in inventory to boost wholesale sales and will remain on the balance sheet and strengthen equity until later transferring to purchases and expenses for a new store opening in the later part of 2014. We propose to open a new shop in a major UK city in time to maximise Christmas sales. .

Why consider investing?

Candy Hero has grown considerably in the last two years and is set to continue expanding and innovating through new and existing sales channels. In 2014 we are preparing the business for further growth and have sensible forecasts of good profits in this financial year.

In the first quarter of 2014 we greatly cut down operational costs, restructured our suppliers and improved software systems to prepare the business for further growth.

In the second quarter of 2014 we have restructured our finance and focussed on optimising our cash flow and supply-chain position which protects our inventory needs throughout the second half of the year and most importantly the Christmas boom. This will considerably increase profits.

Our wholesale market is growing and we capture customers regularly due to great customer service, efficiency and ease of online ordering, which sets us apart from the competition.

Our technology background and in-house software development and e-commerce knowledge sets us apart from our retail competition. We are launching our re-branded website, e-commerce and enterprise software towards the end of 2014 which will vastly increase our capacity to buy and sell confectionery with a great degree of detail and accuracy.

We have created 27 jobs in the last 20 months and have a loyal and trustworthy workforce spread over three locations.

We are working towards a proposed new city centre store in 2014 which promises to yield great additional profits on a larger scale than our current stores.

The additional finance of £50,000 we hope to raise through Rebuilding Society will be initially circulated in inventory to boost wholesale sales and will remain on the balance sheet and strengthen equity until later transferring to purchases and expenses for a new store opening.

Security

The Loan is to be secured on 3 Director Personal Guarantee's. The Directors have a a combined net worth of £240k, based primarily on equity in 3 properties with an estimate combined value of £341,500.

DateAmountCapitalInterestReceived
21/08/2014£1,481.32£711.32£770.00
21/09/2014£1,481.32£722.28£759.04
21/10/2014£1,481.32£733.40£747.92
21/11/2014£1,481.32£744.69£736.63
21/12/2014£1,481.32£756.16£725.16
21/01/2015£1,481.32£767.81£713.51
21/02/2015£1,481.32£779.63£701.69
21/03/2015£1,481.32£791.64£689.68
21/04/2015£1,481.32£803.83£677.49
21/05/2015£1,481.32£816.21£665.11
21/06/2015£1,481.32£828.78£652.54
21/07/2015£1,481.32£841.54£639.78
21/08/2015£1,481.32£854.50£626.82
21/09/2015£1,481.32£867.66£613.66
21/10/2015£1,481.32£881.02£600.30
21/11/2015£1,481.32£894.59£586.73
21/12/2015£1,481.32£908.36£572.96
21/01/2016£1,481.32£922.35£558.97
21/02/2016£1,481.32£936.56£544.76
21/03/2016£1,481.32£950.98£530.34
21/04/2016£1,481.32£965.63£515.69
21/05/2016£1,481.32£980.50£500.82
21/06/2016£1,481.32£995.60£485.72
21/07/2016£1,481.32£1,010.93£470.39
21/08/2016£1,481.32£1,026.50£454.82
21/09/2016£1,481.32£1,042.30£439.02
21/10/2016£1,481.32£1,058.36£422.96
21/11/2016£1,481.32£1,074.65£406.67
21/12/2016£1,481.32£1,091.20£390.12
21/01/2017£24,615.12£24,241.46£373.66
21/02/2017£0.00£0.00£0.00
21/03/2017£0.00£0.00£0.00
21/04/2017£0.00£0.00£0.00
21/05/2017£0.00£0.00£0.00
21/06/2017£0.00£0.00£0.00
21/07/2017£0.00£0.00£0.00
21/08/2017£0.00£0.00£0.00
21/09/2017£0.00£0.00£0.00
21/10/2017£0.00£0.00£0.00
21/11/2017£0.00£0.00£0.00
21/12/2017£0.00£0.00£0.00
21/01/2018£0.00£0.00£0.00
21/02/2018£0.00£0.00£0.00
21/03/2018£0.00£0.00£0.00
21/04/2018£0.00£0.00£0.00
21/05/2018£0.00£0.00£0.00
21/06/2018£0.00£0.00£0.00
21/07/2018£0.00£0.00£0.00
Total:£50,000.44£17,572.96