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PROSPECTUS
PLUMEN 04 OVERVIEW
05 AT A GLANCE
06 PRODUCTS
07 ACCESSORIES
09 REACH
10 SALES TO DATE
11 OUR RETAILERS
12 PROOF OF CONCEPT
13 ACHIEVEMENTS
14 FOUNDERS
15 ADVISORS
16 CURRENT TEAM
17 TIMELINE
19 THE MARKET
20 THE OPPORTUNITY
21 POISED TO CAPITALISE
22 THE LED OPPORTUNITY / THE SMART OPPORTUNITY
PLUMEN STRATEGY 24 PRODUCT ROADMAP
25 SALES
26 MARKETING
29 PROFIT + LOSS
30 CASH FLOW + BALANCE SHEET
31 FINANCIAL NOTES
32 SUMMARY
CONTENTS
PLUMEN 3
“Iconic” VOUCH MAGAZINE “Ingenious” FINANCIAL TIMES
PLUMENOVERVIEW
Light bulbs are changing. They no longer last a year, they last a decade. Soon, they will do more than just give light, they will automatically adjust to your needs while improving your well-being and security.
With increased performance, comes increased value. While the industry continues to be price focused, we’ve proven that if the design is right, people will pay more money than ever before for their light bulbs.
4
LED and new Smart Lighting technology offer the chance to reinvent home lighting for the digital age.
Plumen is the world’s first designer low energy light bulb brand.
This is your chance to join us.
PLUMENAT A GLANCE
Launched in 2010, Plumen is an established business generating revenue in excess of £1m a year.
London is our home, but Plumen is global. We manufacture in China, ship to warehouses on three continents and sell to customers in 75 countries.
In a short time, we’ve inspired a lot of people to be energy efficient and have already sold over half a million products,
5
PLUMEN 001ORIGINAL
PLUMEN 001 BABY
PLUMEN 002ORIGINALLED
PLUMEN DROP CAPPENDANT
PLUMEN 002ORIGINALLED
PLUMEN 001ORIGINALCFL
PLUMEN 001BABYCFL
PLUMEN DROP CAPPENDANT
PLUMEN DROP TOPGLASS SHADE
PLUMEN 002ORIGINALLED
PLUMEN 001ORIGINALCFL
PLUMEN 001BABYCFL
PLUMEN DROP HATMETAL SHADE
PLUMEN DROP CAPPENDANT
PLUMEN 002ORIGINALLED
PLUMEN 001ORIGINALCFL
PLUMEN 001BABYCFL
PLUMENPRODUCTS
We’re known for our award-winning light bulbs, but our product range includes pendants, shades and other lighting accessories.
6
PLUMENACCESSORIES
We love seeing the different ways that people use their Plumen. To encourage people to get creative, we developed a whole range of pendants, shades and accessories that let you show off your Plumen in thousands of ways.
7 1 Drop Top Shade2 Bespoke Pendants3 Base Covers4 Drop Cap Chandelier
1
2 3
4
81 Drop Cap Pendant Range2 Third Party Accessories 3 Drop Hat Shades
32
1
PLUMENREACH
Head Office + Design Studio Factories Warehousing Retail Sales
9
PLUMENSALES TO DATE
Since launch, the UK has been Plumen’s proof of concept market. Our strategy here has seen consistent double-digit growth year after year, even with a small sales team and only a few products.
10
Europe 23%
UK 44%USA 14%
ROW 19%
Plumen.com 18%
Commercial Projects 7%
Retailers 75%
A successful crowd-funding round will dramatically increase our product range and sales team allowing us to further invest in the UK growth and reproduce the same model in France, Germany and the USA.
SALES BY TERRITORY SALES BY CHANNEL
PLUMENOUR RETAILERS
11
12PLUMENPROOF OF CONCEPT
£400,000
£200,000
£100,000
£0Y1 Y2 Y3 Y4 Y5
£75k£147k
£223k
£326k
£440k
£75,000
£50,000
£25,000
£0Y1 Y2 Y3 Y4 Y5
£21k£26k
£35k£45k
£95k
SALES GROWTH - MAJOR UK RETAILER
UK TURNOVER GROWTH
£300,000
PLUMENACHIEVEMENTS
13
AWARDS PRESSMUSEUMS
PLUMENFOUNDERS
NICOLAS ROOPE CREATIVE DIRECTOR
Nik is the driving force behind our product and brand vision.
Outside of the lighting world, Nik is world-renowned as a design, digital and marketing innovator. As co-founder and Creative Director of Poke digital agency, he has helped shaped the online brand presence for the likes of Skype, EE, Topshop, Ted Baker, UBS, Mulberry, Tiffany’s and many more. Poke was sold to Publicis in 2013.
14
MICHAEL-GEORGE HEMUS MANAGING DIRECTOR
MG is our Managing Director and has overseen the development of all areas of the business since the start. A serial entrepreneur, MG has over ten years experience in running product-based start-ups, with particular expertise in manufacturing and product development.
Outside of Plumen, he is one of the re-founders of Truman’s beer, the iconic East London brewer that was brought back to life in 2010 and is now based in Hackney Wick.
RONNIE RENTON CHAIRMAN
Ronnie has great experience in scaling businesses. He made his name at Games Workshop, where turnover grew from £10m to £150m in his time there. By the age of 28 he was MD of the UK sales operations – with 110 retail stores and sales of over £25m. He continued to rise further up the ranks while doing an Executive MBA from LBS.
In 2008 he founded Mantic Games, now one of Europe’s most successful Kickstarter companies, with two $1m+ campaigns and $5m+ raised.
FLEMMING VIKTOR ANDERSEN INVESTOR & MANUFACTURER
Flemming is the founder of our manufacturing partner and our sole investor to date. He has been one of our core supporters from day one.
With 20 years experience in the lighting industry, Flemming has grown his business from scratch to an annual turnover of $30m+. His core market is sales for supermarket own-brand lighting.
ASHLEIGH TENNANT MARKETING
Ashleigh is a marketing strategist with an amazing track record of growing online sales and communities.
Previously a Product Manager for Moo.com and WGSN, she moved on to become Director of Marketing for Wool & The Gang, where she helped grow their online community to more than 80,000.
JOHN MURPHY SALES
John was formerly MD of Megaman UK, where he grew sales from nothing to £25m in his 15 years at the helm of the business. He recently joined Plumen as an advisor and is helping shape the development of our sales strategy for the UK and Europe. His sales experience and network will play a big part in our growth over the coming years.
PLUMENADVISORS
15
PLUMENCURRENT TEAM
16
AARON CASEYMARKETING MANAGER
MICHELLE SHAWACCOUNT DEVELOPER
CAMILLE CARPENTIEROPERATIONS MANAGER
NISHIE JONGFINANCIAL CONTROLLER
CIARA RENTONSALES MANAGER
WILL LATTERTRADE SALES
GIORGIA FERRICUSTOMER SERVICES
LAURENCE ETILEDIGITAL MARKETING
BEN RAWLINGSPRODUCT DEVELOPER
BUSTER PALMANOPRODUCT DEVELOPMENT MANAGER
PLUMENTIMELINE - THE STORY SO FAR
17
2015
2011
2013 2014
2016
001002 002 LED001 BABY
2007ResearchFirst prototype2008 2009
2010 2012
We wonDesign of The YearAward
Selling in more than 50 CountriesDevelopment
BEFORE INVESTMENT AFTER INVESTMENT
18
2020
2017
2018
2019
005
003
004 SMART
The World Converts To Smart Lighting
Launch of Plumen 005
Open U.S. office
Plumen 003 Launch
Plumen 004 Smart Launch
Selling in more than150 Countries
Smart Plumen for every room in the house
New Launch
LED FILAMENTRANGE
PLUMENTIMELINE - THE FUTURE
BEFORE INVESTMENT AFTER INVESTMENT
PLUMENTHE MARKET
19
TARGET ADDRESSABLE MARKET 2020
Source:The McKinsey Lighting Report 2012
$68bn LED Market
$30bn Residential Lighting $5bn Hospitality
£35bn of the $68bn of LED market
2016 2020
General Lighting Market $97bn $111bn
LED $40bn $68bn
Smart $3.66bn $8bn
MARKET SIZE
Hospitality$5bn
Residential$30bn
Hospitality$5bn
Residential$30bn
Of the $35bn of Residential Lighting and Hospitality
25% Europe 18% North America
43% = $15bn
PLUMENTHE OPPORTUNITY
20
$68bn LED Market
$30bn Residential Lighting $5bn Hospitality
£35bn of the $68bn of LED market
Design Museum Tank, 2015 Installation displays 96 bulbs and copper Drop Cap pendants, in a dynamic wave-like formation that mirrors the sculptural qualities of the 002 bulb and the undulating river it neighbours.
The lighting industry is undergoing fundamental change driven by new technologies. LED has rapidly grown to be the dominant technology and is forecast to grow by a further 70% by 2020.
On top of this, Smart Lighting is developing fast, allowing bulbs to deliver further energy and cost savings, plus a whole lot more. It promises to be a huge sector of the market that will drive the replacement of bulbs in homes across the world.
Despite the benefits of energy saving technology, adoption has been slow, so slow that governments worldwide have introduced laws to ban incandescent technology and force their public to use energy efficient lighting. For us, saving energy should be something positive, that we all do willingly. To us, the problem was not people, it was product – a problem we decided to solve by starting Plumen.
PLUMENPOISED TO CAPITALISE
At Plumen, we know the power of design to disrupt and inspire. We’ve seen it with Dyson, Tesla, Sonos, Apple and Nest. We’ve seen it with the Plumen 001.
At its best, design inspires adoption of new technologies and can change the world.
21
Smart speakers
Computers
Smart thermostats
Electric cars
?
PLUMENTHE LED OPPORTUNITY
Once again, the lighting industry’s response to LEDs has been to try and make them look just like what came before.
We think this is the wrong approach. We believe that there is so much more potential for LED and we’ve developed new, patentable formats that bring the best out of the technology.
With light bulbs now lasting decades, the design and light quality is more important than ever because you have to live with them for longer. In the future, people will usually change their bulbs when they renovate, which means design is going to be one of the primary drivers of sales.
22THE SMART OPPORTUNITY
Smart Lighting technology has the potential to completely change the way we all view the light bulb. No longer will they just give light; they will provide well-being and security, central to the Smart Home of the future.
The first Smart bulbs appeared a few years ago, but have not caught on. Being able to control your lights with your phone is useful, but not enough to justify the extra price, especially when your light switch disables them.
At Plumen, we’ve been waiting for a company to develop a technology that is truly smart, delivering real benefits to users. That company was Stack Lighting.
In April, we announced a partnership to develop Stack-enabled Plumen bulbs. Stack are pioneers in sensor-driven Smart lighting; their technology adjusts to your movements, learns how you use light and works with your body clock.
As we’ve seen before, design is critical to the adoption of new technology. Partnering with Stack puts Plumen in prime position to be at the forefront of the new Smart Lighting era.
The opportunity is huge because, if the product is right, the benefits are so compelling that we believe it will inspire households all across the world to switch all their light bulbs to Smart.
If Plumen can grab this opportunity, it can become one of the truly global designer light bulb brands of the 21st Century.
+
PLUMEN STRATEGY
“Too cool to hide” VANITY FAIR
PLUMEN STRATEGYPRODUCT ROADMAP
Our approach to products is simple – deliver fantastic light quality through beautiful light bulbs that people want in their homes.
Our strategy is to create a full range of bulbs to cover all uses. To date, we have focused on centrepiece bulbs that have reinvented how people see the low energy light bulb. Signature products that demand attention.
24
See our video for details of our new product launches
Or even better, come to the Plumen office on June 16th and see them for yourselves!
September 2016 October 2016
October 2017
Early 2018
September 2018 Mid2019
Plumen 003 SmartPlumen 002Plumen 003
Filament LED Range Plumen 004 SmartFilament LED Range
Plumen 005
Now, we’re broadening our offering by introducing our first luxury bulb at the high-end, along with a new range of filament LEDs at a competitive price point. Then, from 2017, Smart versions of our iconic designs will start hitting the market.
By 2020, we’re aiming to have a Plumen for every lighting need in the home.
PLUMEN STRATEGYSALES
Plumen has enjoyed strong sales across the world since we launched, but our focus has always been in the UK.
25
UKIn the UK, we’ve been proactive in forming long-term partnerships and growth with retailers like John Lewis and Habitat. We’ve used it as our proof of concept market and seen double-digit growth every year.
WORLDWIDEInternationally, our sales have always been reactive; our amazing press coverage has driven retailers, distributors and agents to approach us but not built sustainable long-term sales.
Now we can take our UK sales strategy and replicate it in our focus markets of France, Germany and the USA. These are the territories where we will have our own sales teams as well as working closely with agents.
In all other markets, we will work with country specific distributors exclusively representing us in their territories
Installation and window display at John Lewis flagship store, Oxford Street, London.
PLUMEN STRATEGYMARKETING
INSPIRING YOU TO GET CREATIVE WITH LIGHTING
We see our bulbs as ingredients – great on their own, but you get the best out of them when they are combined with other lighting and displayed in fantastic interiors.
We’ve developed accessories to encourage people to get creative, but it’s seeing Plumen bulbs in action that offer the greatest inspiration.
26
The Glowing Oak at Designers Block, 2015One of the most challenging installations we’ve ever done – a real oak tree, laced with Plumen, on the top floor of London’s oldest courthouse.
PLUMEN STRATEGYMARKETING
27
PARTNERSHIPS
We love to partner with other like-minded companies. A perfect example is our collaboration with Made.com.
Last year, we designed two shades for the 001 that Made.com manufactured and launched with great success. Suddenly, the Plumen 001 was on posters all over the London Underground. This year, we’re launching five new products with them, all designed for the 002 LED.
The ‘Curated Items’ section on our site shows a few other collaborations we’ve done and there are a lot more in the pipeline!
1 Made.com collaboration 2 3D Printed shade by Formalized3D
PHOTOGRAPHY
We shoot all our products in as many different settings and scenarios as we can think of, sharing the results on Plumen.com, Facebook and Instagram. However, it’s our fans that deliver the most, shooting their Plumens in the most amazing ways and inspiring others to do the same.
1
2
OUT & ABOUT
Our new products are perfect for bars, coffee shops, restaurants and hotels the world over. They offer beautiful, energy efficient lighting at an affordable price.
Even better, because our bulbs are designed to be shown off, every public space where they’re installed acts like a Plumen showroom. It’s a marketing dream – advertising without the costs.
PLUMEN STRATEGYMARKETING
28
PR & ADVERTISING
To date, we’ve been really lucky with the response to our products – they’ve generated a lot of press without needing to spend much money on PR.
However, over the last year, we’ve been spending a bit of our limited budget on PR and the results have been great. So, we’re planning to use some of the investment raised to really ramp up our PR activity to make sure every journalist who should know about us does know about us.
On top of this, we’ll be investing 12-15% of our web sale revenues back into online advertising to grow the brand and sales further.
FINANCIALS PROFIT & LOSS
29
FY20/2121 (F)FY19/20 (F)FY18/19 (F)FY 17/18 (F)FY 16/17 (F)FY 15/16 (F)
6,874,453
56%
9,859,307
4,296,533
56%
6,162,067
2,685,333
56%
3,230,092
1,528,329
53%
1,525,614
773,240
49%
1,064,522
585,575
45%
Total Sales
Total Direct Costs
Gross Profit %
1,183,117
913,683
1,920,175
675,093
702,833
1,477,058
371,661
413,741
847,164
212,938
319,452
659,493
116,439
203,922
399,407
Total Sales & Marketing
Total General & Administrative
Total Personnel
3,606,821
23%
53,124
3,458
3,550,239
1,545,799
16%
44,270
2,882
1,498,647
621,750
10%
34,054
2,217
585,479
69,197
2%
21,471
13,300
34,427
(439,507)
-
15,512
9,738
(464,757)
(240,821)
-
10,245
8,232
(259,298)
EBITDA
EBITDA %
Total Depreciation & Amortisation
Net Interest (Received/Paid)
Net Profit Pre-tax
15,774,891
1,892,987
1,096,420
2,304,210
FINANCIALS CASH FLOW + BALANCE SHEET
30
FY21 (A+F)
2,615,221
0
0
5,336,314
FY20 (A+F)
1,042,479
(96,800)
0
2,721,093
FY19 (A+F)
385,227
(62,000)
(140,000)
1,775,414
FY18 (A+F)
(71,027)
(28,000)
1,500,000
1,592,187
FY17 (A+F)
(350,505)
(20,000)
550,000
191,214
FY16 (A+F)
(284,532)
(5,590)
269,594
11,720
Cashflow from (to) Operations
Cashflow from (to) Investing
Cashflow from (to) Financing
Ending Cash
Opening Cash
FY21 (A+F)
8,618,343
1,329,127
FY20 (A+F)
4,846,583
1,107,606
FY19 (A+F)
3,092,335
852,005
FY18 (A+F)
2,531,428
876,576
FY17 (A+F)
732,557
630,707
FY16 (A+F)
423,737
381,142
Total Assets
Total Liabilities
Balance Sheet
7,289,2163,738,9772,240,3311,654,851101,85042,595Ending Cash
2,249,794
5,039,422
2,249,794
1,489,183
2,249,794
(9,463)
2,249,794
(594,943)
749,794
(647,944)
249,794
(207,199)
Paid-in Capital
Retained Earnings
FINANCIALS NOTES
31
USE OF FUNDSInvestment raised will go towards the following:• New Product Launches: Both new lines
are fully developed and ready to go into production. Key for us now is to deliver strong, far-reaching product launches that give both lines a platform for success.
• Key Hires: We will look to bolster our team with two experienced hires in Sales and Product Development to drive our growth and ensure we bring through new generations of ground-breaking products.
• Sales: Funds will be used to help us branch out into new European markets, finding and appointing agents to grow our sales through retail and hospitality channels.
• Smart: To complete the development work we have started on Stack-enabled versions of the Plumen 002 and the Plumen 003, ready for launch in 2017.
SALES GROWTH DRIVERSThe primary drivers behind forecast sales growth are new product launches, which will greatly broaden our market and sales channels, investment in our sales team and increased marketing activity.
Year 1• Launch of the Plumen 003 – RRP approx. £100. • Launch of the Filament Range. Five new
bulbs formats at prices ranging from £10-£30, generating much higher sales and opening high volume retailers accounts.
• Increased Sales team. • Online advertising – current ad spend is very
low. In each of the next three years we forecast to spend 12%-15% of web sales back into online ads.
• Year 2• Launch of first Smart Plumen bulbs.• Launch of 004 range.• Plumen 003 and Filament LED range enjoy
a full year of sales and greater market awareness.
Year 3Following a further equity raise, we will:• Open a US office and recruit a US based sales
and marketing team.• Open ‘Big Box’ retailers like Homebase and
Lowes for our mass market product ranges. • Recruit a sales team that is focused on
hospitality sales.• Double the size of our sales team.• Increase marketing spend to develop brand
awareness and sales.
GROSS MARGINSWe forecast our gross margins to increase over the next few years due to:• Increased product margins from new and
future product ranges.• Economies of scale savings as sales grow.
EQUITY INVESTMENTPast: Our sole external investment to date has been £250,000, which came from Flemming Viktor Andersen, the owner of our manufacturing partner E3 Light.
Future: We plan to raise a further £1.5m of equity investment in the first half of 2018, primarily to open an office in the USA and scale sales and marketing activities across the board.
EXISTING DEBTWe have an overdraft of £90,000.
There are Directors’ loans of just under £10,000, which will not be repaid in the next 12 months and there are no plans to repay in the foreseeable future.
PLUMEN STRATEGYSUMMARY
Opportunity – Lighting market is growing and undergoing disruption. New technology creating the need for a designer light bulb brand.
Plumen – A loved brand with a global infrastructure and established sales, ready to capitalise on the opportunity.
Team – Experienced with a strong track record in manufacturing, sales and marketing.
Product – New ground-breaking products ready to launch with pioneering Smart Plumen to follow.
Investment – raising £500,000.
We’re looking for investors who share our vision for the future of lighting and want to be part of the journey.
Join Us.
www.crowdcube.com/Plumen [email protected]
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“The World’s most stylish lightbulb” REMODELISTA
THANK YOU