Originally Posted by
SparkyTheClown
Page 115 gets to the nitty gritty. $2.4m revenue. $2.8m EBITDA loss.
A document search for the word "earnings" shows the document is a bit thin on this.
Page 11 has some useful statements too. "Moa Group is forecasting a pro forma net loss after tax of $3.5 million in FY13 and a loss of $2.5 million in FY14 and is forecasting to have $2.9 million in cash at 31 March 2014 (on the basis of total gross proceeds of $15 million and no oversubscriptions). Moa Group’s current intention is to continue to apply funds in order to grow its business. Funding of this continued growth is intended to be achieved through funds raised from this Offer and other sources considered prudent at the time. There is a risk Moa Group’s growth plans may be unsuccessful or require higher levels of expenditure than forecast. Should Moa Group not be able to secure additional funding when required,it may need to slow its growth investment and endeavour to move its activities towards generating profits earlier than anticipated. "
We also see on page 107 that in 2014, revenue is forecast at just under $5m. Even in 2 years time, this company is still going to be tiny - and unprofitable.
Now, this is a startup, and there are some clever people involved. But the buying of beer is discretionary and substitutional on a number of levels. You can buy other boutique beer, other mainstream beers, or other forms of alcohol, or none at all. People swap out of brands for all sorts of reasons and occasions.
I wanted this listing to succeed, and so when I found out about the listing, I thought I would go to the liquor store in Matakana, which is listed on the Moa website, and pick up some of their beer to try. The liquor store told me "Oh - the distributor has changed, we don't stock this anymore". Clearly they make a nice beer, but distribution is notso hotso, even on the outskirts of Auckland. And if a place like Matakana (where they like boutique produce) isn't enthusiastic.....
I'm not investing. Good luck, and cheers to those who pick some shares up.