Designer and producer of one of the best commercial fly-control units on the market, focusing on being green and hygienic | No-fli

No-Fli is one of the leading global producers of fly-control products. Their flagship product is their eponymous No-Fly system, available in both standard and large sizes. They are committed to ensuring that commercial environments, primarily culinary environments, are kept clear of flying insects and untainted by the traditional fly zapper. Their running costs and power draw are low, emphasising their commitment to being environmentally friendly, hygienic, and cost-effect.

Tell me more

“Zap Zappers.” There’s no place for unhygienic, imported zappers in the hospitality sector anymore.

No-Fli have been involved in the manufacturing and sales of ultra violet fly control units for over 30 years. Working for some of the largest manufacturers in the world we have extensive knowledge of the wholesale and pest control industries. Our business is focused on a subscription model, wherein we provide the No-Fli unit or units to a business, and they then pay a subscription that covers the maintenance and upkeep on their unit or units. We have over 3500 active subscriptions from many businesses. They are mostly centred around Yorkshire and the North, though there are some franchise chains operating in the Uk that have signed up including Costa, Subway, and Dunkin’ Donuts. These numbers continued to trend upwards even during the Covid-19 pandemic.

We manufacture all of our No-Fli units in Harrowgate, in North Yorkshire. These units are built to be relatively aesthetically pleasing but also unobtrusive, so that they do not interfere with the look of the environment that they are placed in. Their design was also focused on ease of service, allowing our clients to keep using our product and services. We both manufacture and supply the units, ensuring there are no middle-men artificially inflating the price of our services. We pride ourselves on being a cost-effective and economical business, especially in the face of the current cost-of-living crisis.

Our main focus ultimately is on hygiene. We understand that traditional imported bug zappers are extremely unhygienic, and are known to cause contamination within a not unremarkable radius around the device. We want to make sure that the hospitality sector is as hygienic as possible, and able to thrive under the freshly hygiene-conscious world that has developed post-Covid. Our products are based on Ultraviolet light and glue boards, both of which are easy to maintain. As we have mentioned, we provide the maintenance ourselves for a small monthly fee. This guarantees revenue, and encourages long-term relationships with clients.

Credit Commentary:
The directors Christopher Lee and Neil Styri are providing a personal guarantee, which means should the business fail and have insufficient assets within the business to repay the loan, we can look to the guarantor(s) to repay any shortfall on repayment. There have been no CCJs for the business or director. The Equifax score and grade, on which we base our assessment of risk, are based on the 2022 accounts. The 2023 management accounts reflect a decent growth in the company's pre-tax profit by £20,000, underscoring its robust stability. Our assessment indicates a debt-serving capacity above 2, affirming the company's ability to manage the loan. The EBITDA was modest at c. £50k, however, we have calculated a positive net gearing which would make the loan affordable. The bank statements demonstrate reasonable affordability, and the accounts remain well in credit.

Inflation Risk:
The business advised they have gone through high inflation in recent times without increasing their prices. Although their cost prices have gone up, they have managed to keep the sale price the same. The director does not expect to draw money from the business as the company is compromised to keep providing its high-quality products.

NO-FLI

Risk warning

NO-FLI

Recommend this investment

Risk warning