Читать книгу How To Become A Business Angel - Richard Hargreaves - Страница 69

One example of an excellent prospectus offer in which I invested was Telecom Plus PLC. I did have the advantage of knowing and respecting the promoter, Matrix Corporate Finance, and meeting the impressive management.

The company was also already well established at the time, though not profitable, and the costs of the prospectus offer were under 5% of money raised. That combination made it a rarity.

Telecom Plus operates the Utility Warehouse Discount Club. It was founded in 1996, raised £5m in 1999 via the prospectus in question and was listed on the London Stock Exchange a year later. Initially it offered cheap phone calls by routing calls to alternative networks but now offers landline and mobile telephony, broadband, gas and electricity and a cash-back card.

The company has grown quite exceptionally. Turnover in the year ending 31 March 1999 (just before the date of the prospectus offering) was £6m with a loss of £1m. This grew to £471m and a profit before tax of £31m for the year ending 31 March 2012 year. At the time of the prospectus offer, the company was valued at £10m before raising £5m, whereas mid 2012 it was valued at approximately £600m.

Investors who subscribed for shares in 1999 at 30p per share would have seen those same shares worth nearly £8.50 in mid 2012, a gain of 28 times. For the EIS investor that would have been close to 40 times their net investment tax free – a serious success story.