Welcome to Beer & Partners Investor Site

Stop Press

7 February 2011

A new year and a new format for our Stop Press. Our reputation in the Business Angel market seems to be that we offer the best deals in a no frills way. We remain dedicated to ensuring that the quality of deals we present to you remains high but thought it about time that we refreshed our presentation of these opportunities to you. We hope you like it and find it easier to read and more quickly identify which bits are of interest to you. Responding to your wishes we are also reformatting our Business Summaries trying to combine a more standardised format without losing the ability to present each individual fund seekers case on its merits.

Beer & Partners EIS Scheme is opening a new round for investment attracting EIS tax relief in the current year for investments made before 5 April 2011. Since its launch, this scheme has invested £600,000 in 6 companies and we are now taking further subscriptions as of the 10th January 2011. While no guarantee can be given as to timing or amount, an IRR of 20% is targeted before taking into account potential EIS tax benefits. Further Information on the scheme can be found on our website (Click Here) or contact James Leay on 07814 434 092 or leay@beerandpartners.com  to find out more.

Business Angels are a vital source of finance for growing businesses.  However, so little is known about activity in the business angel market that we need to improve understanding of this vital market.  Why?  If we want policy makers to do the right things to help this market we need hard evidence.  Angels themselves, and their advisers, will also benefit from being able to see how what they do compares with the rest of the market.  This data is absolutely vital as without it we will be unable to continue to demonstrate to government the scale and importance of angel investing for small businesses, and the importance of maintaining existing tax and other incentives. These are essential both to the continued importance of angel investing, and as in turn the continuing viability of business angel networks going forward. If you would like to take part in a short anonymous BBAA survey, please see the section marked 'BBAA Survey' lower down in the right hand column for further information. 

Events Diary

'Meet the Experts' with Bristows
London
9 February 2011
5.30pm onwards

Beer Investment Evening
Manchester
15 February 2011
5pm onwards

'Focus on Convertible Debt'
London
22 February 2011
6.30pm - 9pm

London Investment Fair
London
10 March 2011
10:00 - 16:00

News

Beer Raises £1m for Retail

Industry Software Company

The client is a software company specialising in a solution for detecting, analysing and managing internal losses for the retail sector. It has been trading for four years and has established itself in the UK market. It is now seeking to expand into Europe and the US. As a result of attending our Investment Fair they met with a Venture Capital company who made the total investment, with the majority being an equity stake.

Associate: Keith Jones – London Region

£279,000 Raised for

Bio-Technology Company

This client is developing a simple urine-based diagnostic test for bladder cancer, to replace the more expensive and unpleasant test used at present. The company won the top cancer award at the prestigious Medical Futures in December 2008. It has also been awarded a £100,000 Research Grant for R&D. An additonal £60,000 was raised in December, bringing the total funds raised to £279,000.

Associate: Lawrence Fenelon – Midlands Region

We are holding our next London

Investment Fair on the 10th

March

For over 10 years, Beer & Partners have been running this highly successful event, attracting up to 200 of our private investors and institutions wishing to invest between £50,000 and £2m.
The doors open to our investors at 10am and close at 4pm...

If you know of anyone who might be interested in coming along to the fair as an Exhibitor, please Click Here for further information.

If you would like to come along as an Investor, further details can be found on our website; please Click Here .

For a general chat on how the fair can work for you, please contact Head Office directly on 0207 329 4884 and we'll be more than happy to answer any queries you may have.

Beer EIS

Spreading the risk of holding individual investments by delivering a diversified portfolio of shares in unquoted companies.

Since its launch, The Beer EIS Scheme has invested £600,000 in six companies and we are now taking further subscriptions as of the 10th January 2011... Click here for further information

 BBAA Survey

The British Business Angel Association (BBAA) through the University of Strathclyde and Queens University Belfast are conducting a survey covering investments in unquoted companies made during the tax year 2009/10. Only 12 questions, completely anonymous, and will not be shared with anyone else with data only be published in aggregate form. If you would like to participate you can do this online by Clicking Here.

The results of the 2008/9 survey, plus other information, were published in the annual report on the Business Angel Market 2008/9. You can get that report for free... Download Here.

 Associate Spotlight

 James Leay

James Leay joined Beer & Partners in 2009 as head of Investor Relations. His role included implementing a comprehensive event programme, encouraging networking and ensuring that our investors received the best opportunities, at the right time and in the right way. In addition, James worked as a Beer and Partners Associate based in the London office, before moving to become a Corporate Associate in January 2010. Primarily interested in new technology, music, hospitality and event sectors, James also has a keen interest in medical and telecommunications companies having previously worked for BT Health on the NPfIT contracts. His sector knowledge and investor relations work puts him in an ideal position to help raise funds for our clients. On the 10th January 2010, James re-launched the Beer EIS scheme with Simon Hunt and Mandy Hutchison. James heads up the sales side of the Scheme and continues to advise on Beer’s event programme.

In his spare time, James is a keen musician playing classical and jazz music on both the saxophone and clarinet. James also enjoys Rugby Union, is a keen cook and loves to travel.

New Additions to the Beer

Associate Team

We are pleased to announce some new arrivals to our team of associates. Please click on their names below to view their full online biogs and photos:

Sandy Mackenzie 

Region: Thames Valley

Sandy has experience in helping startup and early stage companies develop their business through her own consultancy practice. Her special interests are in the hi-tech and green-tech sectors.

Simon Scott

Region: Thames Valley

Simon joins us with an extensive background in the IT services, telecoms and media sectors. Simon is a Chartered Accountant by original training.

Robin Little 

Region: Eastern

Robin is himself a seasoned investor with experience of fund raising, financing growing business and working for a company with venture capital backing.

Richard Hartley 

Region: London

Richard joined Beer very recently as a Corporate Associate with Repens Limited. He will focus on projects based in the London region.

PATENTED TOOL FOR EASY YACHT HULL CLEANING IS A LAUNCH SUCCESS AT THE LONDON INTERNATIONAL BOAT SHOW
 

Sector: 
Funds Sought:  
Location:  
Stage:  
Ref. Number:  

Leisure
£125,000
East Midlands
Early Stage
51148

20 million boat owners worldwide have a common problem, the necessity of keeping the hull clean. At the moment the only solutions are to lift the boat out of the water or send a diver down to do the job, both expensive and time consuming.

With this company’s innovative and award winning tool, yacht and boat hulls can now be cleaned quickly and easily while still in the water, typically taking one person around 15 minutes to clean a 10m hull.

The design incorporates a specially designed foam head that allows the cleaning in a single motion and a patented buoyancy device that provides the pressure to the cleaning head.

Exhaustive R&D has lead the company to launching the product at this years London International Boat show and with a group of experienced investors and entrepreneurs on board, the company is looking for more investors to join them in further developing the product and market place.

Response to date suggests an aggressive growth over the next 3 years followed by an exit to trade sale necessary for the product to realise its global potential.

Contact: Mike Epton - 07733 107 238 - epton@beerandpartners.com

PROFITABLE, EXPANDING SPECIALIST PUBLISHER - PRINT & DIGITAL
£150,000 FUNDING ALREADY RAISED
 

Sector:  
Funds Sought:  
Location:  
Stage:  
Ref. Number:  

Publishing
£300,000
London
Early Stage
50985

After a profitable first year of trading, our client is a supplier of high quality content for the global heritage, cultural and education markets. Sole supplier contracts are in place for an increasing number of cultural publications and an increasing range of revision / educational content. Great success in the Cairo museum book store will lead to a new contract to supply the Giza Plateau bookstore.

Our client is expanding and releasing unique products on the Apple devices such as iPod Touch, iPhone & iPad. It is estimated that 60% of UK teenagers in the target GCSE group have an iPod Touch device. With the unique heritage products selling well and expanding, coupled with the annual recurring market for revision and study products, our client believes their growth will continue and accelerate. Their maths revision product is due to go live in April 2011.

All necessary commercial relationships are secured and in place, including distribution through the Apple AppStore.

With a strong management team in place and profit forecasts at -£138,000, £930,000 and £2,965,000 over the next 3 years, our client is seeking £300,000 of funding in return for equity and a possible board position in the business.

Contact: David Rich - 0208 144 0018 - rich@beerandpartners.com

INTEGRATED SYSTEM & SERVICE TO SUPPORT THE ELDERLY
 

Sector:  
Funds Sought:  
Location:  
Stage:  
Ref. Number:  

Medical
£900,000
South West
Early Stage
51042

A breakthrough service from an early stage Anglo-French company which offers huge potential in the very rapidly developing market for services to help the elderly live longer.

The lead service actively helps patients take their medication on time using a patented pill dispenser and other services will follow on e.g. distress management. Interest is growing all the time and the project now has the support of the Board of Pharmacists in France who regard it is as unique and ahead of the market.

The first phase of technical development is virtually completed and the service is almost ready for commercial deployment in the private and public sectors. France and UK are the lead markets. In addition, a pan-European network of partners and contacts developed through EU projects means a rapid growth can be maintained.

A highly experienced English speaking Board based in Paris and Bristol has introduced £1m to date and used it very effectively working with some excellent partners. Turnover in 2011 will be modest but in 2012 a turnover of £9.8m is confidently predicted rising to £31m in 2013. Profit growth is assured with a strong financial model which includes a high degree of recurring income.

The company would like to raise £450,000 in equity and a further £450,000 in debt to finalise development, focus on industrialisation of the concept and launch the service.

This client has entered an exciting commercial growth period, offering substantial potential for investors. Minimum tranches of £50,000.

Contact: Ian Palmer - 07899 927 095 - palmer@beerandpartners.com

ACQUISITION, CONSOLIDATION & ROLLOUT OF ASSET BASED PROFITABLE & CASH GENERATIVE EQUESTRIAN CENTRES
 

Sector:  
Funds Sought:  
Location:  
Stage:  
Ref. Number:  

Leisure
£125,000
London
Start Up
51171

The acquisition, consolidation and development of existing riding schools and livery yards into a consistent offering and brand creates a significantly improved customer experience and achieves substantial economies of scale, thereby adding value, margin and cashflow to already profitable businesses. The capital value of these businesses is further enhanced by their incorporation into a consolidated structure.

The UK equestrian market is worth some £4.8bn (British Equestrian Trade Association 05/06). There are approximately 2,000 riding schools with 54,000 horses. Around 1,300,000 people ride at least once a week and around 720,000 people own one or more horses.

The majority of riding schools and livery yards are ‘lifestyle’ businesses. While they are prime sites with profitable businesses, this dictates that they can be purchased for the land and asset value incorporating little or no value for the ongoing business or goodwill. The acquisition of the sites and trading vehicles will be an asset purchase and be funded as such. The directors have secured a debt offer of 70% and are looking for seed funding and additional funding in terms of equity and mezzanine to facilitate the purchase of the first sites.

The first sites have been identified and acquired businesses will continue trading at roughly the pre-acquisition profile, which will be profitable and cash generative. There is no requirement for additional working capital beyond the first round of fundraising.

The first round funding requirement is £125,000. The Phase 1 acquisition of 5 centres requires a total to be phased over the period of around £25m of senior debt and equity which is likely to be required in five stages.

Contact: Steve Johnson - 07787 104 736 - johnson@beerandpartners.com

WIRELESS LOCATOR TECHNOLOGY FOR RESORT HOTELS: TRANSFORMS BAR PROFITABILITY
 

Sector:  
Funds Sought:  
Location:  
Stage:  
Ref. Number:  

Hospitality / IT / Leisure
£1m
London
Expansion
51136

This is a wireless, location-based, patented technology that enables guests at up-market resort hotels to summon food and beverage service without leaving their sun beds. A small wireless button is attached to pool furniture. When the button is pressed the system locates it to an accuracy of 3m wherever it might be on the hotel property. It has NO competitors. The first installation (Tenerife, June 2008) has resulted in bar revenues up almost 40%. Now that the resort hotel business is recovering after the global financial implosion of 2008, BarMate has re-launched, and demand from the world’s top hotel chains – Four Seasons, Hilton, Hyatt, Marriott, Sheraton, Intercontinental – is strong. BarMate is raising £1 million to fund this growth.

Key Points:

• High-end hotel client base - focussed on major resorts like Florida, Tenerife, Hawaii, UAE
• Unique patented system to improve service in pool and beach areas, proven over 3 years
• Huge client pipeline - Hyatt, Starwood, Hilton, Four Seasons, Marriott, Intercontinental
• Raises food and beverage revenues by up to 40%, for low installation cost
• Successful team with top hotel ownership, technology and business-building experience
• Team has invested £1.5 million+
• Significant profits expected in 2012
• EIS eligible

Contact: Angus Milne - 0207 329 4884 - milne@beerandpartners.com

FUN, EDUCATIONAL GEOGRAPHY & TRAVEL WEBSITE FOR PRIMARY SCHOOLS
 

Sector:  
Funds Sought:  
Location:  
Stage:  
Ref. Number:  

Education
£500,000
London
Early Stage
51143

Our client, founded by a primary school teacher with long experience and after a lot of research, has an interactive website that uses geography and the travel exploits of its two principal characters as educational tools.

The site has lively and original content, vibrant design, games, user-generated content and a controlled social networking function, so it is exciting as a cross-curricular subscription-based teaching tool for schools; a fun (and free) place to visit for children, enabling them to explore the world; and parents can use the site to plan holidays that are relevant and fun for their children.

The site will launch in March 2011, and will have 1,000+ pages, at least one platform game, and some mini educational games and an affiliate product store with Amazon.

Considerable interest has already been expressed from USA and Australia, and extensive pre-marketing in the UK has been very encouraging.

£500,000 is sought for 33% of the equity, which will ensure rapid development up to and after launch. The Founders have already invested £300,000 to get the site to launch.

The company will make money initially from subscriptions from schools, which will be set at £200 pa, and subsequently from advertising, sponsorship and product sales.

Contact: Dwight Makins - 0207 329 4884 - makins@beerandpartners.com

INVESTMENT IN STRATEGIC PLANNING GAIN
 

Sector:  
Funds Sought:  
Location:  
Stage:  
Ref. Number:  

Property (inc. Developing)
£250,000
South East
Other
51169

£250,000 is sought for an interest in a contracted £8m sale of land options on 138 acres of land at Whitfield, Dover, with an expected completion date in March/April 2011, when a payment of £325,000 will be realised for this interest. The options enable the acquisition of the land at a 27% discount once planning consent has been granted for residential development.

The options have been sold for £8m, subject to planning, to a residential developer of some resource and note who has under contract to Dover District Council, prepared the masterplan for this area. The site is now included in the approved Dover Core Strategy as the preferred greenfield development site. The draft masterplan was approved by the Council on 13.09.10 and the formality of the final adoption is targeted for 23.02.11. The developer through the masterplanners submitted a full application on 5.11.10. Under planning legislation, consent cannot be refused provided the application is consistent with the approved masterplan.

Should the developer default, then the options (and the associated interest) would become substantially more valuable (circa £20m plus). In excess of £1.5m has been spent to date in the preparation, promotion and approval of the masterplan and the associated planning application. There is no reason to expect that the developer will not complete the purchase on the grant of planning.

The risks to the proposition are minimal: non-adoption of the masterplan is politically out of the question; non-compliance of the application with the masterplan is equally unlikely (see above); and default by the developer would increase the value of the options several-fold.

Contact: Steve Johnson - 07787 104 736 - johnson@beerandpartners.com