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UK - North East and Cumbria
Date Rated:
Valuation (Pre Money):
Industry: Technology
Location: UK - North East and Cumbria
Platform: Crowdcube
£451,000 Seed
Valuation: £1,641,194
Date Rated: 20/11/17



Tax Status: EIS

Business Summary

Zona has developed a retrofit motorcycle rear view system, using patented technology that fits any helmet or motorcycle and has achieved pre-sales from 19 different countries. This round of investment will be used to fund further product development, marketing and to accelerate growth.

Financial Overview

Date (y/e) Dec-17 Dec-18 Dec-19 Dec-20 Dec-21
Sales Dec-17£39,834 Dec-18£3,584,012 Dec-19£11,619,754 Dec-20£23,772,012 Dec-21£37,045,097
Gross Profit Dec-17-£166 Dec-18£1,320,225 Dec-19£5,140,676 Dec-20£10,895,469 Dec-21£16,981,070
GP as % sales Dec-170% Dec-1837% Dec-1944% Dec-2046% Dec-2146%
Overheads Dec-17£654,475 Dec-18£1,046,833 Dec-19£2,478,946 Dec-20£5,164,657 Dec-21£6,579,971
Operating Profit Dec-17-£734,858 Dec-18£175,678 Dec-19£2,537,640 Dec-20£5,595,122 Dec-21£10,261,091
OP as % sales Dec-17-1845% Dec-185% Dec-1922% Dec-2024% Dec-2128%
Closing Cash Dec-17£290,793 Dec-18£673,595 Dec-19£3,462,311 Dec-20£8,908,472 £18,444,022

Note: This financial information has been sourced from the company on 20/11/2017. Financial data is NOT verified by Wheatfromchaff Ltd.
There is a complete management team in place covering every key role with the right skills to help the company grow its market presence and drive commercialisation.
The management team has significant business and product development experience and they will have the support of an experienced and successful advisor.
The Founder has invested significant time into the business and despite his shareholding being heavily diluted, he could still expect substantial rewards.
The motorcycle market is worth about £5bn in the UK alone with 1.2 million motorcycles registered and there are 24 million in Europe where Zona expects to expand to within 12 months.
Delivery delays have led to some orders being refunded, but the product is fully developed and Zona could rapidly increase brand awareness with a world champion motorcyclist now on board.
Given the number of companies developing similar solutions, increasing competitive pressure is expected, however Zona has its offering ready to commercialise and patented until 2036.
Although Zona has an aggressive forecast, given the lean business model, profit margins could rapidly improve however the marketing budget seems insufficient to support the intended growth.
This round of investment provides substantial headroom to protect against any revenue shortfall and suppliers will be paid on 30 days helping to manage the cashflow.
Achieving these sales projections will be a strong challenge for the team but given the entry valuation, investors could expect rewarding returns within five years.


The company has achieved early traction with a significant amount of pre-sales, but there are no independent testimonials yet. Given the company's early stage, it is difficult to see the business achieving £3.5m in revenue in 2018 as the follow-on volume production will not start until next March and levels of customer engagement are still unproven.

Although a skilled and experienced management team is in place, intended worldwide expansion combined with the development of further offerings like the new cycle product really requires a stronger team now or further delays might also be expected. However, if the team can achieve at least a third of the sales projections, investors in this round should expect reasonable returns upon exit.

Related Links

Crowdcube Pitch


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