GLOBAL - INVESTMENT PROPOSAL OCTOBER 2018
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GLOBAL
INVESTMENT PROPOSAL
OCTOBER 2018
2 www.efs.global
GLOBAL
EXECUTIVE SUMMARY
At EFS Global, we are a UK-based logistics provider ... it is clear to see
with worldwide reach and over 2,000 customers. From
import and export, to European road freight, customs
that we are ideally
clearance, refrigerated transport and more, we offer placed to continue
the cost-conscious SME a one-stop shop in logistics. our success in
this indispensable
We work from 7 key depots which span the length and
breadth of the UK – including Manchester, Liverpool,
sector.
Bradford (Skipton and Keighley), Preston, Tamworth,
Immingham, with our headquarters in Burnley.
We understand that multinational logistics providers can
be impersonal and uncompetitive, which is why we pride
ourselves on our customer focused team who always
provide a competitive, friendly and reliable service.
We were founded in 1996 by Mark Jones, and have grown
both organically and through acquisition. With a sales
turnover of £29 million on an annualised basis, and our
strong, consistent and profitable track record, it is clear
to see that we are ideally placed to continue our success
in this indispensable sector.
We propose to raise £650,000 to lock in our
customer base and advance our growth plans.
3 www.efs.global
GLOBAL
THE PROBLEM FACING SMES
THE SOLUTION
AT EFS GLOBAL, WE PROVIDE THE COST
CONSCIOUS SME A ONE-STOP SHOP IN LOGISTICS.
COMPLICATED EASY
Using different logistics suppliers is complicated and time consuming. Only deal with one company.
EXPENSIVE PROFITABLE
Firms that offer multimodal solutions can be uncompetitive. Take advantage of our competitive rates.
IMPERSONAL PERSONAL
! !
Many larger logistics firms are impersonal and inflexible. Rely on our friendly team who go the extra mile.
4 www.efs.global
GLOBAL
MARKET VALIDATION
IN THE UK ALONE, BETWEEN 2015 AND 2016*:
GOODS GOODS
LIFTED MOVED
15% 12%
VEHICLE
KILOMETERS
YOY YOY
to 170 billion
5%
tonne kilometres
YOY
to 19.2 billion vehicle
kilometres
*https://assets.publishing.service.gov.uk/government/
uploads/system/uploads/attachment_data/file/627597/
domestic-road-freight-statistics-2016.pdf
5 www.efs.global
GLOBAL
WHO ARE WE?
UK-BASED GLOBAL DELIVER TALENTED, ENGAGED ENTREPRENEURIAL PROVEN TRACK
LOGISTICS SERVICE REACH ON TIME AND MOTIVATED COMPANY RECORD
PROVIDER WORKFORCE
6 www.efs.global
GLOBAL
OUR HISTORY
Mark founded We joined a Our refrigerated We purchased our We acquired the Liverpool & Deliveries from
EFS pallet network service was introduced 36,000 ft² warehouse Bradford Depots Immingham Docks
were introduced
1996 1998 2006 2010 2011 2013 2014 2015 2016 2017 2018
We bought our first EFS acquired a We introduced sea The Preston Depot Our parcel delivery
7.5T and 18T trucks Manchester depot and air freight services opened and we services began and
and bought our offices started our Customs the Tamworth Depot
and workshops Clearance service joined our Group
7 www.efs.global
GLOBAL
OUR SERVICE OFFER
BURNLEY
HAULAGE & PALLET DELIVERY | REFRIGERATED TRANSPORT | IMPORT / EXPORT &
CLEARANCE | AIR, SEA & ROAD FREIGHT | VEHICLE MAINTENANCE | WAREHOUSING
BRADFORD
LIVERPOOL
HAULAGE & PALLET DELIVERY | REFRIGERATED TRANSPORT PRESTON
VEHICLE MAINTENANCE | WAREHOUSING BURNLEY
TAMWORTH LIVERPOOL IMMINGHAM
HAULAGE & PALLET DELIVERY | VEHICLE MAINTENANCE | WAREHOUSING
BRADFORD MANCHESTER
PALLET & PARCEL DISTRIBUTION | IMPORT / EXPORT & CLEARANCE
AIR, SEA & ROAD FREIGHT | WAREHOUSING TAMWORTH
MANCHESTER
HAULAGE & DISTRIBUTION | IMPORT / EXPORT & CLEARANCE
AIR, SEA & ROAD FREIGHT | BONDED WAREHOUSING
PRESTON
HAULAGE & DISTRIBUTION | COMMERCIAL TYRES
IMMINGHAM
HAULAGE & DISTRIBUTION | WAREHOUSING
8 www.efs.global
GLOBAL OWNERS
MARK & JENNIFER JONES
COMPANY STRUCTURE
EFS GLOBAL
EFS BOSS EXPRESS FREIGHT SOLUTIONS JONES METCALF
EFS LOGISTICS JRS TRACTION
RED SCAR CS BRUNT HORIZON BRAD EURO- EURO
(EVIDALE) TRANS TRAN SDB
9 www.efs.global
GLOBAL
EFS GLOBAL TEAM ANTHONY HOOLEY MARK JONES GAVIN KELLET
FINANCE DIRECTOR MANAGING DIRECTOR OPERATIONS DIRECTOR
Provides our financial forecasts Founded and developed our Working on acquisitions
and actual performance analysis. Company over the last 22 years, and has a background
leading to £29 million sales. in general management.
MARK JONES
MANAGING DIRECTOR
ANTHONY HOOLEY GAVIN KELLETT
FINANCE DIRECTOR OPERATIONS DIRECTOR
GROUP JONES EFS EFS EURO CS BRAD HORIZON EURO- RED JRS
FINANCE METCALF LOGISTICS WAGES SDB BRUNT TRANS TRAN SCAR
ANDREA / CARL EMMA / NIGEL LIZ PETE CHRIS TONY B RICHARD DAVE TONY F JAMES
TEAM OF 7
TEAM OF 90 TEAM OF 14 TEAM TEAM TEAM TEAM TEAM TEAM TEAM
OF 48 OF 5 OF 12 OF 24 OF 33 OF 6 OF 26
10 www.efs.global
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VISION & VALUES
PROVIDE OUTSTANDING CUSTOMER SERVICE
DEVELOP THE TEAM AND INDIVIDUALS
INVEST IN ASSETS AND TECHNOLOGY
REWARD DEVELOPMENT, INNOVATION AND ACHIEVEMENT11 www.efs.global
GLOBAL
WHY ARE WE FUNDRAISING?
Our early years witnessed steady and organic growth. By 2015, we had
cultivated a strong financial track record, a wide customer base and a
committed, long serving team, which gave us the perfect foundation to
implement a more aggressive growth strategy.
During this period of expansion, our sales turnover has grown from £9.6
million to £29 million and our profit before interest and tax has risen
from £0.7 million to £2 million. It is our continued investment in team
development, internet marketing, cross-selling, developing our customer
base and completing acquisitions that has made this possible.
Cross-selling our service offer to a wide customer base has been, and
will continue to be, a crucial aspect of our strategy. By exploiting these
opportunities, we can continue to drive turnover and profitability.
Our history shows that we have the know-how to deliver the goods,
but we can only do it with your support. Your investment will enable
us to execute our strategy, deliver our goals and offer
you an excellent return within a 5 year period.12 www.efs.global
GLOBAL
THE ASK
WE ARE LOOKING FOR A
TOTAL OF £650,000 TO
INCREASE ANNUALISED
PROFIT TO £7.88 MILLION
OVER THE NEXT 5 YEARS.13 www.efs.global
GLOBAL
SHARE TYPES
ORDINARY (NOMINEE) £10+
Each Ordinary Share is entitled to: one vote in any circumstance; certain
pre-emption rights and will be held via the Crowdcube nominee structure.14 www.efs.global
GLOBAL
NEW OFFICES
THE SPEND (12%)
To build new offices and IT
infrastructure, creating an impressive
visiting space.
NEW VEHICLES TEAM DEVELOPMENT
(27%) (15%)
To reduce maintenance costs, To further invest in employee training
improve km/l and provide CSR/ and development and to employ a
PR opportunities by investing in Sales Director and Regional Operations
‘greener’ vehicles. Director.
WORKING CAPITAL SALES AND MARKETING
(23%) (23%)
To support steady cash flow. To continue successful internet marketing
campaigns, build our brand offering and
exploit cross-selling of our offer.15 www.efs.global
GLOBAL
GLOBAL GROWTH
With our commitment to providing a first-class service and
developing our offer, we are growing at an exponential rate.
What’s more, we actively reinvest most of our profits back
into the Group and have a proven acquisition strategy that has
been honed over 4 years. It is through the following principles
that we continue to expand our service offer, domestic
presence and global reach:
• A
target business that complements the existing Group
• A
strong track record of profitable results – no turnarounds
• A
committed management team that demonstrates talent
within their sector
• C
onsideration payments of 50% upfront and 50% profit
related (self-funding) over 3 years
• A
positive contribution to EFS Global cash flow
Combining our sales and marketing plan with our
acquisition strategy means we can increase the
Company’s value and size, rapidly and securely.16 www.efs.global
GLOBAL
WHY INVEST IN US?
SECURITY CLIENTS
Our positive sales growth is set to witness our turnover increase from We have over 2,000 partnerships and do not rely on a small number
£9 million in 2015 to £29 million in 2018, proving we know our trade. of big contracts, making investing with us less of a risk.
PROFIT POTENTIAL POSITIVITY
Our 5 year business plan aims to see sales revenue advance to circa We provide a positive and friendly experience for everyone – employees and
80 million by 2023, offering the potential for big financial gains. customers alike. This means people want to do repeat business with us.
LONGEVITY REWARDS
Demand for our service is high and the industry is here to stay. It is the UK’s Our Investment Reward Scheme gives you access to great discounts
fifth largest employer and is worth £124 billion GVA to UK economy.* on our logistical services or John Lewis vouchers up to £750.
CONTINUED INVESTMENT EXPERIENCE
Our continued investment in people, processes and technology continually Invest in our extensive experience, reap your own rewards and be
fuels our growth, streamlines our offering and ensures we excel. rest assured that we are in it for the long haul.
*https://www.rha.uk.net/policy-campaigning/top-industry-issues/haulage-industry17 www.efs.global
GLOBAL
INVESTMENT REWARDS SCHEME
At EFS Global, we like to thank our supporters with a range of rewards.
When new transactions are referred to us, investors can choose between
discounts on our services or John Lewis gift vouchers*.
• I nvest £250 to £999
receive 1 x £25 discount voucher or £10 John Lewis Voucher
• I nvest £1,000 to £1,999
receive 4 x £25 discount vouchers or £40 John Lewis Voucher
• I nvest £2,000 to £4,999
receive 8 x £25 discount vouchers or £80 John Lewis Voucher
• I nvest £5,000 to £9,999
receive 20 x £25 discount vouchers or £200 John Lewis Voucher
• I nvest £10,000 to £24,999
receive 40 x £25 discount vouchers or £400 John Lewis Voucher
• I nvest £25,000 or more
receive 100 x £25 discount vouchers or £750 John Lewis Voucher
As we put most of our profits back into EFS Global, pre-investment
dividends have been set at £200,000 for this financial year.
Dividends will be paid to all shareholders pro-rata and
in line with the final level of investment we receive.
*All transactions are subject to our standard terms and
conditions and any associated costs will be confirmed in advance.18 www.efs.global
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TERRIFIC TRUCKS
Each of our trucks can travel hundreds of miles in just one journey and be
exposed to thousands of people across the UK. That’s why we’re rewarding
investors of over £25,000 the chance to promote their own business by
advertising on the side of an EFS trailer for free.* And just for fun, investors
of £5,000 or more will get to name a truck and have it printed on the front,
before its sets off on its travels.
*All artwork and wording related to the Terrific Trucks scheme to be jointly
approved by EFS and the investor.19 www.efs.global
GLOBAL
VALUATION & EXIT
With the logistics industry being worth more than £124 billion GVA to UK Sector valuations and projection for EFS Global in 2023
economy, it is clear that it is a crucial business that is here to stay.
At EFS Global, we have over 2,000 customers spanning many sectors, Annual profits P/E Ratio Market Cap
reducing the risk of your investment. Clipper Logistics £12,473,792 34.15 £425,980,000
Eddie Stobart £9,800,000 16.00 £156,800,000
We believe that our strong track record in the development of sales revenue
and profit is a key indicator of our success, showing that we have the team, Stobart Group £28,484,696 29.73 £846,850,000
plan and know-how to grow. Dart Group PLC £76,724,694 15.51 £1,190,000,000
EFS Global (2023) £7,880,000 15.00 £118,200,000
We value our business based on our current level of actual operating profit
(£2 million) and, given our ability to deliver on future growth, our pre-money
valuation is £14,000,000 (7 x £2.0 million).
We are determined to take our annualised operating profit to almost We are proud of what we have achieved so far and want you to be a part
£8 million over the next 5 years and at that stage our exit will be a trade of our exciting journey. With our profitable track record and solid sector
sale, AIM listing or private equity investment. experience, we are confident that we offer a sound investment.
If you like what you see and are ready to come along, let’s buckle up and be
on our way.
Get in touch at:
investment@efs.global20 www.efs.global
GLOBAL
EFS GLOBAL SALES REVENUE
We have established a pattern of strong sales growth from 2015 £90,000,000
(£9 million) to 2018 (£25 million). Our credible and deliverable 5 year
business plan will ensure our sales revenue advances to a level of circa £80,000,000
£80 million by 2023. On an annualised basis, our running rate of sales
has already hit £29 million this financial year. £70,000,000
£60,000,000
£50,000,000
£40,000,000
£30,000,000
£20,000,000
£10,000,000
£0
2015 2016 2017 2018 2019 2020 2021 2022 2023
Actual sales Forecast sales21 www.efs.global
GLOBAL
PROFIT BEFORE INTEREST & TAX
Actual profits have grown substantially from 2016 (£1.06 million) £8,000,000
to 2018 (£1.62 million) and our business plan, supported with your
investment, will secure our continued growth and success over the £7,000,000
next 5 years. On an annualised basis our running rate of PBIT has
already hit £2 million this financial year. £6,000,000
£5,000,000
£4,000,000
£3,000,000
£2,000,000
£1,000,000
£0
2015/6 2016/7 2017/8 2018/9 2019/20 2020/21 2021/22 2022/23
Actual profit Forecast profit22 www.efs.global
GLOBAL
EFS GLOBAL PROFIT SOURCES
Most of our profits are reinvested back into the Company to continually fuel £8,000,000
the future development and growth of the Business.
£7,000,000
£6,000,000
£5,000,000
£4,000,000
£3,000,000
£2,000,000
£1,000,000
£0
2015/6 2016/7 2017/8 2018/9 2019/20 2020/21 2021/22 2022/23
Underlying profit Annual acquisitions 12.5% organic growth23 www.efs.global
GLOBAL
EFS GLOBAL PROFIT & LOSS
2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23
Sales Revenue £13,685,254 £15,696,515 £24,857,393 £30,000,000 £43,000,000 £56,000,000 £67,000,000 £78,000,000
Cost of Sales -£11,304,157 -£12,938,912 -£21,063,661 -£25,059,419 -£35,918,501 -£46,777,583 -£55,966,036 -£65,154,490
Gross Profit £2,381,097 £2,757,603 £3,793,732 £4,940,581 £7,081,499 £9,222,417 £11,033,964 £12,845,510
Administrative Expenses -£1,328,486 -£1,467,017 -£2,226,341 -£3,018,581 -£4,009,499 -£4,800,417 -£5,061,964 -£5,293,510
Other Operating Income £7,137 £18,837 £48,706 £48,000 £48,000 £48,000 £48,000 £48,000
Operating Profit £1,059,748 £1,309,423 £1,616,097 £1,970,000 £3,120,000 £4,470,000 £6,020,000 £7,600,000
Other Interest Receivable and £64,378 £31,787 £17,158 £20,000 £20,000 £20,000 £20,000 £20,000
similar income
Interest Payable -£169,822 -£194,579 -£274,816 -£300,000 -£325,000 -£325,000 -£325,000 -£325,000
Profit Before Tax £954,304 £1,146,631 £1,358,439 £1,690,000 £2,815,000 £4,165,000 £5,715,000 £7,295,000
Taxation -£203,378 -£231,188 -£255,317 -£321,100 -£534,850 -£749,700 -£1,028,700 -£1,313,100
Profit After Tax £750,926 £915,443 £1,103,122 £1,368,900 £2,280,150 £3,415,300 £4,686,300 £5,981,90024 www.efs.global
GLOBAL
EFS GLOBAL BALANCE SHEET
2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23
Fixed Assets
Intangible Assets £12,000
Tangible Assets £3,886,562 £4,001,255 £5,402,089 £5,642,000 £6,122,000 £6,602,000 £7,082,000 £7,562,000
Investments £1,966,183 £3,868,080 £5,226,083 £6,576,000 £9,276,000 £11,976,000 £14,676,000 £17,376,000
£5,852,745 £7,869,335 £10,640,172 £12,218,000 £15,398,000 £18,578,000 £21,758,000 £24,938,000
Current Assets
Stocks £268,021 £302,938 £371,419 £416,400 £506,400 £596,400 £686,400 £776,400
Debtors £3,406,384 £4,011,975 £5,749,307 £6,619,300 £8,359,300 £10,099,300 £11,839,300 £13,579,300
Current asset investments £31,280
Cash at bank and in hand £391,836 £328,699 £322,273 £532,270 £952,270 £1,372,270 £1,792,270 £2,212,270
£4,097,521 £4,643,612 £6,442,999 £7,567,970 £9,817,970 £12,067,970 £14,317,970 £16,567,970
Creditors: amounts due within one year -£4,396,287 -£5,964,603 -£7,847,431 -£8,612,400 -£10,142,400 -£11,672,400 -£13,202,400 -£14,732,400
Net Current Assets -£298,766 -£1,320,991 -£1,404,432 -£1,044,430 -£324,430 £395,570 £1,115,570 £1,835,570
Total Assets Less Current Liabilities £5,553,979 £6,548,344 £9,235,740 £11,173,570 £15,073,570 £18,973,570 £22,873,570 £26,773,570
Creditors: amounts due after one year -£2,078,607 -£2,046,033 -£2,872,128 -£3,007,100 -£3,277,100 -£3,547,100 -£3,817,100 -£4,087,100
Provisions For Liabilities -£198,691 £183,013 £328,391 £478,400 £778,400 £1,078,400 £1,378,400 £1,678,400
Net Assets £3,276,681 £4,319,298 £6,035,221 £7,688,070 £11,018,070 £14,348,070 £17,678,070 £21,008,07025 www.efs.global
GLOBAL
DISCLAIMER
All information in this document relating to EFS Global [the Company] is strictly private
and confidential. By accepting delivery of this document, you [the Reader] acknowledge
and accept that the reproduction, dissemination or forwarding of this document is strictly
prohibited. The Reader also acknowledges that the financial information contained in this
presentation is strictly illustrative and subject to change without notice, and that accuracy
cannot be guaranteed.
The Company does not assume responsibility or liability for any inaccuracies, errors or
incomplete information. The Reader accepts that the Company’s statements and financial
projections are made at the date of document compilation, are forward-looking and not
wholly guaranteed.
All prospective investors should carefully consider whether investing in the Company is
appropriate, considering the economic climate, their personal circumstances and their
financial situation. As there are no guarantees that the Company’s objectives and projections
will be achieved, an investor’s capital may be at risk. If the Reader is unsure of whether to
invest or has any doubts, they are encouraged to consult with a financial advisor.
This document has not been prepared or approved by an authorised person within the
meaning of the Financial Services and Markets Act. It is up to you, the Reader, to make your
own independent judgement about this document and to seek financial guidance where
applicable. Investment in the Company carries substantial risk and could lead to the loss of
all, or some of such investment.You can also read
