The Genuine Cake Company

Based in Mayfair, we strive to create perfect cakes to compliment any occasion. Although our flagship designs are wedding cakes, we also provide delicious treats as parts of corporate gifts, children's celebrations, or even just because! We also offer our famous “indulgence bars” for events, showcasing a variety of our delicious cakes, so that guests can enjoy a multitude of treats.

Our food has wowed for ten years and has caught the attention of several big companies and big names. We've provided stunning cakes for celebrities and also collaborated with the Michelin-starred chef Gordon Ramsay. We work closely with 5-star venues, such as the Savoy and Sunbeam Studios, who offer our creations as part of their event packages. We have also seen significant growth and potential in our branded corporate offerings. Moreover we’ve recently managed to secure a contract with Harrods, supplying our creations to their food courts.

We've completed several successful funding rounds thanks to the Crowd2Fund investor community, which has allowed us to expand through refurbishment, purchasing equipment and developments to our eCommerce facilities. We are now looking to raise funds to further develop our marketing efforts, which so far have resulted in the aforementioned relationships with 5-star hotels and Harrods. We’re delighted to say that we’ve been achieving a growth rate of 30% year on year, and with Crowd2Fund’s help we’ll either continue or exceed that.

Credit commentary:
The directors Sachel Singh and Marie Sinclair 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. Additionally, the business is offering a debenture to secure the repayment of the loan. There have been no CCJs for the business or director. We have assessed recent financial information, including recent management accounts, which were not available to Equifax. The company has shown strong financial performance and stability, as indicated by several key measures. Their total EBITDA is £176k from their Management accounts and £105k from their filled accounts, demonstrating consistency in their financial performance. Turnover increased by 27% between 2022 and 2023, showing substantial revenue growth. The TNW increased from 2022 to 2023, reaching £40k, highlighting the company’s financial stability. However, TNW decreased from 2022 to 2023, and is now at £314k, indicating a solid asset base for borrowing facilities. The company’s current short-term loans amount to approximately £158k. The DSC is determined to be 1.11, suggesting the company can cover its debt obligations with tight margins. Net gearing initially showed a favourable financial risk at -8%, but recalculations reveal a net gearing of 98%, indicating high financial risk. Trade debtors have remained stable over the past two years at around £96k, indicating consistent management of receivables. The company’s current debt portfolio includes Federal Capital, White Oak, and three outstanding loans with Crowd2fund. Historically, the company has successfully repaid four loans with Crowd2fund, with two of the remaining three loans restructured due to the pandemic and one loan currently up to date. Overall, the company demonstrates strong revenue growth, stable trade debtors, and positive cash flow. However, attention should be paid to the high net gearing and the recent reduction in TNW, which could indicate potential financial strain.

Inflation Risk:
The company does not expect inflation to affect its operations. Since the majority of the business’s lending is at a fixed rate, they will not be immediately affected by interest rate increases.