Doug Scott, loud mouth Geordie entrepreneur living in the Midlands.

VE Interactive UK Unicorn Curious?

VE Interactive UK Unicorn Curious?

I am not good enough in accounts or as a journalist but I do like digging round and seeing what I can find:) Well this morning I was doing some messing and started looking at VE Interactive, which has recently been valued at over £1 billion and a so called Unicorn. I was wondering why a company would be valued at such a high multiple and who would value it?? Well I found this:

http://www.londonstockexchange.com/exchange/news/alliance-news/detail/1458033974656519100.html

In 2014, Ve Interactive made a GBP2.9 million loss on the back of GBP19.7 million in revenue.

So I started looking at Concha as they had invested £4 million into VE Interactive and found this:

http://www.lse.co.uk/AllNews.asp?code=b4h27p78&headline=Concha_Invests_GBP4_Million_To_Take_Small_Stake_In_Ve_Interactive

So I started digging into who Concha are and what they do. This is from their website:

The stated aims of CONCHA PLC are to evaluate and invest in a broad range of technology, media, communications and related industries.

and I found this mention of VE Interactive in their latest reports:

http://www.concha-plc.com/content/investors/latest_results.asp

And this quote:

Despite topping the Sunday Times Tech Track 100, following an average growth rate in sales of 305% per year between 2012 and 2014, the business has yet to secure development funding from either venture capital or private equity markets. As such we see Ve as being ideally suited to public markets at some point either subsequent to or simultaneously with a more traditional equity backed fundraising led by an established banking institution.

And this quote:

At 31 December 2015, prior to its investment in Ve, the Company was pleased to report cash reserves of £5.6m compared with £5.7m at the corresponding date last year.

And it says this on March 15 2016:

the company invested GBP4.0 million to take a small stake in British-based global technology company Ve Interactive Ltd.

Concha said it paid GBP250 for each share acquired in Ve Interactive, giving it a 0.43% stake following the deal.

Thus valuing VE at over £1 billion.

And then I found this graph of the share price of Concha:

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http://www.londonstockexchange.com/exchange/prices-and-markets/stocks/summary/company-summary/GB00B8Y82097GBGBXAIM.html

  • In 2014, Ve Interactive made a GBP2.9 million loss on the back of GBP19.7 million in revenue.
  • Concha invested GBP4.0 million to took a small stake in British-based global technology company Ve Interactive Ltd. Valuing VE Interactive at over £1 billion.
  • Concha Share Price has gone from 6p last year to 0.5p now

As I have said earlier I am not a good at accounts or at journalism to work this out, so is there anyone who is capable of explaining this to me please?

Thanks

 

Doug

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