Software & web applications for financial mortgage
Market Sector |
Software/Web Application for the Financial/Mortgage Sector
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Product Development | Core Developed - In live trials with customers - 2nd phase development scheduled | |||
Business Stage | Pre Revenue - customers trialling product | |||
Investment | £250k - in tranches against specific measurable milestones over 9 months | |||
EIS Tax Relief | Yes | Valuation | £1.25m |
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Location | Warwick | |||
The company have completed a proprietary software application, delivered online as an assessment tool for the financial & mortgage market, that when conceived 3 years ago expected to exploit opportunities in a growing sector. Maybe 8 months ago the opportunity appeared to have gone but as the market recovers and re-shapes itself, the core product is now being actively assessed by the mortgage & financial sector, because it is a unique "one stop" solution in the market that addresses a number of regulatory compliance, audit and industry driven best practices, particularly aimed at the initial pre-advisory information collection process.
With the FSA clearly indicating a new "policing" regime will be implemented the company have a very definite market opportunity and competitor advantage that they now feel can be exploited through adoption of the product by key industry sector partners. In the last 2 months, the pace of adoption has accelerated with a number of significant breakthroughs, firstly following system approval, one of the top two consumer credit data holders have agreed exclusive access, followed by a major mortgage network sourcing provider with over 20k users, along with 4 other networks commencing product trials.
In addition to the audit/compliance solution the system offers a time saving, one stop, considerably cheaper option than is currently available. An advisor can access all the relevant data for £32 with a projected GP of 50% to the company. The financial projections in the business plan assume reasonable growth and usage by advisors at an average of only 15 enquiries per annum yielding c£240gp per user p.a. which puts into perspective the potential revenue one network of 20k users could generate.
The management and executive team are all from the industry sector with both excellent technical and proven business expertise at the highest level. The company have been funded by the management, private investors and a regional co-investment fund who have indicated they will be willing to match new investment. With revenue now possible by July/August the company are seeking to step up product development with deployment of additional staff and purchase of relevant data requiring £250k over 6 months against defined and measurable milestones. A valuation of £1.25m is anticipated. A full plan is available.
Projected Forecast
| 2009/10 | 2010/11 | 2011/12 | |
| Sales (m) | 4,101 | 8,593 | 10,645 |
| Gross Profit | 1,664 | 3,593 | 5,004 |
| Overheads | 906 | 1,995 | 2,703 |
| Net Profit | 758 | 1,597 | 2,300 |
| No of users | 6,420 | 9,775 | 12,518 |