BrewCo, a pioneer in sustainable homebrewing, was established in 2022 with a commitment to providing high-quality, eco-friendly brewing equipment and ingredients. With a strong reputation in the industry and a passion for crafting premium products, BrewCo has positioned itself as a leader in the growing market for DIY homebrewing enthusiasts. As an environmentally conscious company, BrewCo has received recognition for its efforts to reduce waste through the use of reusable materials.
As someone deeply embedded in the brewing community, I know how passionate people are about creating their own unique beers at home. BrewCo was born from this passion, and it’s been an incredibly rewarding journey helping others discover the art of brewing. Over the years, we’ve expanded our range of homebrewing kits, equipment, and ingredients to cater to a wide variety of beer styles, ensuring every homebrewer has access to the tools they need to make exceptional brews.
What sets us apart is our focus on sustainability. We understand the importance of protecting our planet, which is why we’ve developed eco-friendly solutions such as reusable brewing kits, reducing single-use plastic and encouraging a circular economy. Our customers value our commitment to sustainability as much as they appreciate the quality of our products, which has earned us a loyal following.
We’ve seen great success since our founding, and we’re excited to continue growing. With the homebrewing market expanding, we’re seeking investment to scale our operations and increase our product offerings. Join us in making a difference in the world of homebrewing and sustainability.
Credit Commentary:
Established in 2022, BrewCo, is based in Halifax, UK, and supplies a wide range of home brewing kits, beer-making supplies, and wine and cider kits. The company has many great reviews for its multiple product lines and an impressive score on TrustPilot. The director, Oliver Walker, is providing a personal guarantee, which means should the business fail and there are insufficient assets within the business to repay the loan, we can look back to the guarantor to repay any shortfall. The director has a good credit profile plus a homeowner (with one-third equity cover) and the company holds an Equifax report of B(+). There have been no CCJs for the business or the director. Looking at the financials, the company posted an impressive turnover in its second year of operation at £624K (FY2022: £134K), and the operating profit stood at £26.9K for FY2023. The 8M FY2024 accounts exhibit massive improvement with sturdy sales recorded at £455K and a jump in Gross Margins to 50% (FY 2023: 16.3%), owing to increased sales and effective cost management of the inventory. The EBITDA of £79K is sufficient to cover the proposed loan facility plus debt service coverage stands high with a net gearing of 22%, highlighting the financial stability of the company. The Tangible Net Worth stood at £40K (FY2023: 19.4K) during 8M FY2024. Finally, the bank statements demonstrate good affordability and accounts remain well in credit. The company will use loan proceeds to maintain stock levels for new items and stock up on the existing range, plus cater to additional demand emanating from the Christmas festival. In addition, to support cash flow management, as the debtors take around three weeks to disburse receipt payments.
Inflation Risk:
As per the company’s management, inflation has rather a positive impact on their business, since higher cost of doing business/staff cost has led to a reduction in the number of pubs, paving the way for home-brewing. The cost benefit of 40p a pint compared to the average price of a pint at £4.8, with wine an average £1 per bottle is making more people take up the hobby and to save some cash.
Loan
