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Flooring Hut

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The smarter way to buy new carpet & flooring.

112%
 - 
Funded 11 Apr 2020
£50,000 target
£56,385 from 62 investors
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Business overview

Location Worthing, United Kingdom
Social media
Website www.flooringhut.co.uk
Sectors Home & Personal Mixed Digital/Non-Digital Mixed B2B/B2C
Company number 09611722
Incorporation date 28 May 2015
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Investment summary

Type Equity
Valuation (pre-money) £3.8M
Equity offered 1.46%
Tax relief

EIS

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Business highlights

  • Transforming the UK flooring industry valued at £2bn in 2017
  • 4.5 years disrupting the market with £7.65m+ in sales
  • 24,000+ online sales across domestic and trade sectors
  • Building a network of independent installers
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Key features

  • Secondary Market
  • Nominee investment min. £11.28 +

Idea

Introduction

We are a UK technology company operating in the flooring industry.

Our USP is our ability to connect a dis-jointed market, allowing the customer access to great value products, leading brands and a suitable, vetted local installer to perform the work.

Our customers love us because of our competitive prices, selection and availability. Our network of independent installers loves us because we bring them regular, profitable work.

To our knowledge, we are the only UK flooring retailer that offers this seamless integration & connectivity on a digital platform.

Over the last 4 years we have been witness to (and played a growing part in) the re-shaping of the UK carpet & flooring industry. Change driven by the Customer.

We operate a competitive online pricing strategy across all products. The key to our success to date, has been a consistent & reliable mix of:

1. Pricing
2. Selection
3. Availability (delivery/fulfilment/installation)

Intended impact

We intend to build a sector re-defining profitable business by gaining market share from the old-school, bricks & mortar operators.

Flooring Hut is simplifying the market for the consumer by offering a one-stop solution for flooring purchases & installation.

Flooring Hut management are guided by 3 principles:

1. Total customer obsession (Our Key)
2. Innovation (Our Driver)
3. Long term vision (Our Guide)

Substantial accomplishments to date

• £7.65m total value of sales to date

• Year 1 T/O – £135k

• Year 2 T/O – £214k

• Year 3 T/O – £2m

• Year 4 T/O – £3m

• Year 5 T/O (1st 6 Months) – £2.22m

• 24,000 total number of sales to date

• 10,833 online sales in past 12 months to 11.19

• October 2019 - online sales of £402,000

• November 2019 - online sales of £475,000

• Growing % of repeat trade business

• 62% consumer sales

• 38% trade sales

• 786 registered trade customers

• 140+ Flooring Hut Installer Network members

• Now 12,000 products available for sale

Monetisation strategy

Currently:

• E-Commerce sales to retail and trade
• Sales of leading flooring brands i.e. Polyflor & Forbo
• Sales of branded flooring accessories i.e. F Ball & Mapei
• Own-brand products (increasing)

Future Plans:

• GAME CHANGER: Create & develop a flexible & highly accurate room measurement tool. Integrate seamlessly on the FH platform with an AR room visualiser and add to basket/e-commerce functionality.

• GAME CHANGER: Develop and make live (on website & app) the ability for customers to purchase the installation/up-lift & dispose at checkout (in addition to purchasing the product(s) online).

• Installer network member subscriptions
• Margin from installers services
• Margin from estimators services
• Insurance industry contracts
• Landlord/Rental property owner subscriptions
• Alternative product sales (i.e. ceramic tiles)
• Expansion overseas

Use of proceeds

1. Develop our self-service platform functionality for customers. Enabling us to scale with reduction of high cost (customer) inbound = minimisation of marginal costs

2. Website & App: Top-level flooring category development. Distinct & differentiated consumer & trade presentation/UX/journeys, driving conversions, average value order & margin mix

3. Increase rate at which new products are added to our online shop – own-brand; carpets; laminate; wood; accessories

4. Growth, utilisation and integration of our UK Installer Network Members, creating a genuine blended online-to-offline (o2o) business model

5. In partnership with select manufacturers - create, develop and grow a range of own-brand Flooring Hut carpets and floors

6. Increased spend on targeted paid search marketing (primarily Google Shopping) – focus on higher margin categories such as own-brand, carpets and wood flooring. Move into generic flooring searches

7. Expand our reach on social media & affiliate marketing

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If you successfully purchase a share lot of this business, you will be granted access.

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Only shareholders can access this page

If you successfully purchase a share lot of this business, you will be granted access.

Buy shares

Only shareholders can access this page

If you successfully purchase a share lot of this business, you will be granted access.

Buy shares

Only shareholders can access this page

If you successfully purchase a share lot of this business, you will be granted access.

Buy shares

Investing involves risks, including loss of capital, illiquidity, lack of dividends and dilution, and should be done only as part of a diversified portfolio. Please read the Risk Warnings before investing. Investments should only be made by investors who understand these risks. Tax treatment depends on individual circumstances and is subject to change in future.

This campaign for Flooring Hut has been approved by Seedrs Limited (trading as Republic Europe) ("Republic Europe", "us" or "we"), as of 18 March 2020 as a financial promotion. Republic Europe is authorised and regulated by the Financial Conduct Authority with firm reference number 550317. In approving this campaign, Republic Europe has concluded that the information, taken as a whole, is "fair, clear and not misleading." This means that for factual statements we have reviewed evidence of their accuracy, and that for aspirational statements we believe they are phrased appropriately in light of their speculative nature. You should note that in the case of factual statements, the evidence we review is provided by the business, and we do not audit it, which means that we may not be able to identify forged or altered evidence. You should further note that in the case of aspirational statements, the nature of the type of businesses presented on the Republic Europe platform is such that they are likely to have high ambitions, and we may approve statements that convey those ambitions even where we do not believe, or we do not have a view on whether it is likely, that they will be fully realised. The pre-money valuation and investment sought in the campaign are those set by the business: they are not reviewed or established by us, and the valuation is not an independent view of what the business is worth. Given the nature and type of businesses presented on the Republic Europe platform, it is possible that the business has very little cash remaining prior to receiving this investment, and the investment sought may be necessary for the business's on-going existence.

Republic Europe does not make investment recommendations to you. No communications from Republic Europe, through this website or any other medium, should be construed as an investment recommendation. Further, nothing on this website shall be considered an offer to sell, or a solicitation of an offer to buy, any security to any person in any jurisdiction to whom or in which such offer, solicitation or sale is unlawful. Republic Europe does not provide legal, financial or tax advice of any kind. If you have any questions with respect to legal, financial or tax matters relevant to your interactions with Republic Europe, you should consult a professional adviser.

Tax Relief (SEIS)

This business is eligible for SEIS relief - providing qualifying investors with income tax relief of 50% of their investment and certain other tax reliefs. Tax treatment depends on individual circumstances and is subject to change in future. Click to learn more.

Tax Relief (EIS)

This business is eligible for EIS relief - providing qualifying investors with income tax relief of 30% of their investment and certain other tax reliefs. Tax treatment depends on individual circumstances and is subject to change in future. Click to learn more.

Valuation (pre-money)

Valuation rounded from £3,797,600

This is the fully-diluted pre-money valuation of the business (i.e. before the new investment comes in and including issued options and other equity interests). In contrast, the post-money valuation is based on inclusion of the new investment in the value.

It is calculated as the pre-money valuation plus the amount of new investment. e.g. If Company A is ascribed a pre-money valuation of £1,200,000 by prospective investors investing £300,000, its post-money valuation is £1,500,000.

The investee business is responsible for setting its own valuation, it has not been prescribed by Seedrs.

Pitch type

Investing in a regular equity campaign is the simplest and most common way to invest in a startup. You decide which business you want to invest in, and if the campaign hits its funding target then you will become one of their shareholders. As the company becomes more valuable, so do your shares; allowing you the opportunity to share in the future success of the business.

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Equity Offered

The equity offered is the percentage of the company’s shares being issued in return for the amount of investment raised.

When the amount raised is less than 100%, the equity offered is based on the target raise. Once the company has raised over 100% it is based on the total raised.

In some scenarios, entrepreneurs may accept additional direct investment after closing their Seedrs campaign. Provided this is within 6 months of the closing and on the same terms, we do not typically offer pre-emption rights on that extra investment (where you have the opportunity to invest again to maintain your percentage shareholding).

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Nominee investment

This shows if you are able to choose, when making an investment, that you be represented by, and your shareholding be managed by, the Nominee investment.

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Custodian

If you invest in this Campaign, Seedrs will act as Custodian rather than provide our standard nominee service. This is due to the fact that the business is not directly involved in the share sale and Seedrs will not benefit from any rights under a shareholder agreement. As a result, Seedrs will handle administrative tasks as we do normally, but you will not have information or voting rights, updates from the business, preemption on future fundraising, or ongoing support about business trading activity.

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Secondary market

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Direct investment

This is an option to invest and hold shares 'directly' in the company (rather than via the Nominee investment). This option is only available to those investing over the threshold amount, which is determined by the fundraising company.

If you choose to hold your shares directly, you will be responsible for any contractual or administrative arrangements with the company you are investing in.

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Payment options

We are not able to accept card payments for investments into this sector. You can pay for your investment by creating a bank transfer, using funds in your investment account or create a Pay by Bank payment. Your investment will only be completed once the funds have reached our account.

Business Involvement

This Campaign offers shares for sale in business that is not directly involved in this Campaign or the sale. As a result, the Campaign and post-investment experience, including investor rights, will differ from a business-led campaign on Seedrs. Most notably, the business will not engage with investors in the discussion forums both during and after the sale or provide any updates to investors.

Learn more here

Payment options

We are not able to accept Pay by Bank payments for investments into this sector. You can pay for your investment with a card payment, by creating a bank transfer or by using funds in your investment account. Your investment will only be completed once the funds have reached our account.

Drawdowns

This campaign offers the ability to pay for an investment by drawdowns.

Security Token

A security token is a digital asset that represents ownership or other rights. It is a digital form of traditional investments. In the future, you may be able to trade your investment through compatible exchanges.

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