PRINCIPAL PLACE 2 HEARN STREET EC2A 3BR

TRAM DEPOT 38-40 UPPER CLAPTON ROAD LONDON E5 8B8

WWW.BLOKLONDON.COM

BLOK CROWDCUBE KEY INFO

Invest now

Go to www.crowdcube.com/blok

Investment highlights

Highly scalable and profitable business with potential to over deliver projections outlined below, with further revenue streams to monetize.

Business established in February 2016 and founders have built a strong brand and had great traction to date with momentum to scale the business significant and deliver significant return for investors.

One off opportunity to invest in the business. Future funding expected through private equity and/or a strategic investor.

Eligible for EIS tax relief (see details below)

USP

Due to BLOK’s strong reputation for creating unique and beautiful gym spaces, they are being approached by real estate groups and landlords who are offering significant incentives and prime locations for their new sites. This reduces the capital expenditure to open new sites and offers them the best location for their customers.

No other fitness business in the market offers as many types of classes and breadth of instructor talent, which has created a passionate and loyal following.

Founders have strong experience in the key areas:

Ed Stanbury - nearly 20 years in construction / property developmentMax Oppenheim - career in photography, design and media production

Financials

Based on Manchester opening Nov-18 ; Site 4 opening Sep-19 ; Site 5 opening Feb-20 ; Site 6 Oct-20

PRINCIPAL PLACE 2 HEARN STREET EC2A 3BR

TRAM DEPOT 38-40 UPPER CLAPTON ROAD LONDON E5 8B8

WWW.BLOKLONDON.COM

BLOK CROWDCUBE KEY INFO

Rewards

As well as receiving Ordinary Class shares with voting and pre emption rights investors are eligible forrewards that can be used in any BLOK location (including the new Manchester site) and can also be gifted to a friend or family member.

PRINCIPAL PLACE 2 HEARN STREET EC2A 3BR

TRAM DEPOT 38-40 UPPER CLAPTON ROAD LONDON E5 8B8

WWW.BLOKLONDON.COM

Investment Q&A

What are the funds being used for?

This money will be used to expand from their existing two sites in East London (Clapton and Shoreditch) to six sites by 2020.

The third site is already agreed and will be opening in Manchester Nov-18, with a further site opening 03’19 and the next two in 2020.

How will you deliver higher profits in future years?

Gross margin % and EBITDA margin % increases to 2021 as the sites mature and classes are fuller and average fees earned from customers rises.

Site launch costs and sales promotions impact profit margins for the initial 6 months of each new site, but deliver 35%-40% EBITDA margin once mature.

How have you calculated the valuation of the business?

The business has been valued at £9.5m based on industry comparables, brand reputation as well as growth and profit margin potential.

What level of returns can investors expect and over what time period?

There is significant interest from private equity and strategic buyers in this space, which is driving strong valuations and therefore high returns for early investors.

No dividends are forecasted to be paid in the first three years. Instead the profits will be re-invested in the business to provide the best return for investors.

We aim to provide investors a significant return on initial investment after three years, with private equity or a strategic buyer looking to acquire shares.

Is this investment eligible for EIS tax relief?

Yes. This allows investors to offset 30% of their investment against any income tax paid, so you are only paying £7 for every £10 invested.

Furthermore any gains are exempt from Capital Gains Tax if the shares are held for at least three years.

Further details of full benefits are found here: