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Zing Zing

Platform:
Crowdcube
Stage:
Expansion
Industry:
Food & Drink
Location:
UK - London
Date Rated:
13/12/17
Raise:
£500,000
Equity:
8.68%
Valuation (Pre Money):
£5,260,369
Industry: Food & Drink
Location: UK - London
Platform: Crowdcube
£500,000 Expansion
Valuation: £5,760,369
Date Rated: 11/12/17

MANAGEMENT

PRODUCT

INVESTMENT
Tax Status: EIS

Business Summary

Zing Zing is a Chinese takeout providing quality ingredients without added chemicals and expanding its business model across London. Zing Zing has grown from two to four sites and has recently won "The Best Chinese Takeout and Delivery" award. This round of investment will be used to fund further expansion.

Financial Overview

Dec-21
Date (y/e) Dec-17 Dec-18 Dec-19 Dec-20 Dec-21
Sales Dec-17£2,247,728 Dec-18£4,033,900 Dec-19£7,471,617 Dec-20£13,580,602 Dec-21£22,208,128
Gross Profit Dec-17£1,446,783 Dec-18£2,819,323 Dec-19£5,275,755 Dec-20£9,705,625 Dec-21£16,032,491
GP as % sales Dec-1764% Dec-1870% Dec-1971% Dec-2071% Dec-2172%
Overheads Dec-17£1,841,988 Dec-18£2,897,259 Dec-19£4,982,720 Dec-20£8,296,304 Dec-21£12,658,329
Operating Profit Dec-17-£395,205 Dec-18-£77,936 Dec-19£293,035 Dec-20£1,409,321 Dec-21£3,374,162
OP as % sales Dec-17-18% Dec-18-2% Dec-194% Dec-2010% Dec-2115%
Closing Cash Dec-17- Dec-18- Dec-19- Dec-20- -

Note: This financial information has been sourced from the company on 11/12/2017. Financial data is NOT verified by Wheatfromchaff Ltd.
84%
SKILLS:
EXPERIENCE:
COMMITMENT:
The Founders have formed a skilled team around them, all the key roles are properly covered and there is enough management expertise to support the roll-out plan.
This industry is well known by the Founder and he has successfully sold a similar company. The management team will also be supported by an experienced board of advisors.
The entire management team is full-time and has invested significant time in developing the product and expanding the business.
63%
MARKET:
PRODUCT:
COMPETITION:
The UK home delivery market is worth £5.5bn and growing steadily, however, Zing Zing's addressable market is limited to the Chinese takeout segment that is worth about £1.4bn in the UK.
The team is constantly working to improve product's quality and consistency and is now achieving over 80% repeat orders, and the company's database has grown to over 55k customers .
The Chinese home delivery market is fragmented but well-backed players are emerging and the company's expansion is still within London in order to benefit from operating efficiencies.
61%
PROFITABILITY:
CASHFLOW:
RETURNS:
Although the business is a bit behind the previous plan, current sales projections seem achievable and profit margins could improve rapidly benefiting from site synergies.
There is insufficient information available to fairly rate this aspect of the business
If the roll-out is achieved and there are no other major delays, the stated five-fold return seems achievable for investors in this round.


Conclusion

There are many players in the London area but the skilled and experienced management team has already built a strong brand and customer network, although the increasing number of sites and offerings will put the team's management skills to the test.

The Founder has stated that further bank debt may be used to support the expansion, and investors should be aware that whilst accelerating growth, increasing debt will also increase financial risk. Investors should also note that further funds will be needed to maintain growth if profitability is not achieved and if these are raised as equity, a further investment will be required to avoid dilution. However, we welcome the fact that the campaign is already over-funding giving the company more financial headroom if needed.

Related Links

Crowdcube Pitch

www.zing-zing.co.uk

 

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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

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