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Peppermint publishes its accounts for the year to June 2014

Peppermint Technology has filed its accounts for the trading year to 30th June 2014. These are abbreviated and unaudited accounts and were filed at Companies House on 19 March 2015. Headline figures include the company’s debtors have increased from £365,278 to £1,777,379 in the past 12 months and it now has loans totalling £4,271,000 (2013 – £3,313,000) owed to its parent company.

Peppermint Technology has filed its accounts for the trading year to 30th June 2014. These are abbreviated and unaudited accounts (as per section 477 of the Companies Act 2006) and were filed at Companies House on 19 March 2015.

Headline figures include the company’s debtors have increased from £365,278 to £1,777,379 in the past 12 months – because a full breakdown is not available in abbreviated accounts, there is no detail here but typically this figure will relate to customers (such as law firms) who have been invoiced by Peppermint but have not yet paid their bills. The company’s primary creditor is its parent company OLM Group Limited, the accounts noting that “The amount in other creditors due after one year relates to loans totalling £4,271,000 (2013 – £3,313,000) held with OLM Group Limited and the companies it controls, which bear interest at 3% above base rate. The amounts are insecure and have no fixed repayment date.”

COMMENT: Peppermint director and co-founder Arlene Adams has always said the company’s accounts are exactly what you would expect to see in a software start-up company. And in case you were wondering how long you can be a start-up, last month a senior director at Amazon described the company as “a 20-year-old start-up” !

See attached accounts here Peppermint Accounts June 2014

3 replies on “Peppermint publishes its accounts for the year to June 2014”

Ouch net liabilities of £4.2m ‘caveat emptor’. These aren’t Silicon valley start ups, it’s a mature market and every firm has a PMS. Looking at the numbers from independents such as SOS, Linetime and others they have established client bases and strong revenues. Given Peppermints model it will take them years to get out of that hole. Having had a look it’s not bad software but I just can’t see them ever becoming viable over the next 5 years. I suspect OLM are regretting putting £4m into a black hole or should I say PepperTunnel.

Looking through there not actually signed off by an auditor/firm of accountants so I assume a directors opinion?

I guess the options might be:
1. Sell the product but how much £2m tops leaving -£2m.
2. Get PE investment – staring at -£4m before new money isn’t a great starting point so they’d put in say £8m inc bank debt wanting an IRR of say 3 times in 3-5 years – doesn’t look feasible.
3. Sell it but an OP of say £200k looking at the numbers doesn’t get a big number but say you got a £2m you’re still £2m behind.

Looks like a daunting prospect unless of course one of the big boy comes along and wallops a load cash then promptly shuts it down in 2 years as we’ve seen with others citing no longer strategic.

It’s one thing investing in companies with nice juicy public sector contracts, but to throw this amount of money into a mature market that serves a beleaguered, over-supplied profession is quite another.

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