We are a healthcare company. We develop new and innovative ways to make staying healthy as easy, affordable and accessible, to as many people as possible.
WinchPharma has seen some significant developments throughout its operating life. We have bought and sold product businesses and have a solid track record of acquiring and retaining large, government clients.
In March 2017, Byotrol plc (a chemical company based in Chester) acquired our NHS healthcare division for £114,000. This business was one of our core competencies, and has demonstrated our capabilities in the public contracts arena. Having worked with the NHS for almost a decade, we have built resilient, defensible relationships with key, decision-making stakeholders, which allows us market entry with any product in relevant areas. In addition to this, we have formed long-standing relationships with some large private sector organisations such as YPO, Countrywide Healthcare Supplies, Betterware and Kleeneze, the largest education, care home and mail order distributors, respectively, in the United Kingdom.
Being strategically placed in these diverse sectors helps us remain pliant in an otherwise tumultuous, yet rewarding market. We have survived downturns, maximised upturns and have a good understanding of the head- and tailwinds associated with our particular sector. As a regulatory compliant organisation, we regularly review government legislation and regulation to ensure we are at the forefront of changes likely to happen in the market. For instance, during our time operating our NHS supplies business, we ensured we were compliant with upcoming BPR Biocide Regulation as well as changes in product packaging legislation and new EU Directives. This is of critical importance for a business such as ours.
We’re currently in the process of building a 100% carbon neutral warehouse/office, powered entirely by solar and wind energy, along with a rain collection and purification system for our water requirements. As part of our ongoing environmental commitments, we aim for completion of this purpose-built facility by mid-July 2017. With your help, we can achieve this.
As a business we own and operate a number of brands. Most of these brands are not well known to the general public as such products are sold through government contracts. Various brands within our commercial offering are sold through mail order catalogues such as Betterware, Kleeneze and Natural Health Britain – who have been loyal, reliably-paying customers for years.
We also manufacture and sell high specification cleaning supplies to both YPO (Yorkshire Purchasing Organisation) and Countrywide Healthcare Supplies, who regularly purchase our branded products for distribution throughout the care home, hospital and education sectors.
Within 3 years, the company expects to give shareholders a 500% return on their original investment. That’s around £25 back for every £5 invested today.
We are a financially conscious organisation. Working with government departments and high-profile private sector companies, we are expected to operate within certain fiscal parameters that help us remain prudent and financially astute.
Over the next three financial years, we expect to grow our Shareholder Equity from circa £100,000 to circa £1m through a fluid, sustainable strategy which involves both customer acquisition, as well as gearing up for the sale of our clinical supplies business within said three years. In our third financial year, we aim to pay out a £100,000 dividend to shareholders. Our objective is to pay an annual dividend every year from year three, onwards.
To the left, Figure 1 shows our projections on both turnover (total sales) and gross profit (sales minus cost of sales) for the next three years. These turnover figures include all of our operations.
Our customer base is growing. Our customer acquisition strategy shows us growing our core customers from 3 to 5 within the three fiscal years from 2017. To service upcoming orders, as well as demand from our customer pipeline, we need working capital above and beyond our current budget allocation.
Proceeds from the sale of our NHS supplies subsidiary have been used to service factoring and collateralised HSBC obligations, as well as part of the monies deferred until a payment date in 2018. This funding round will allow us to plug the gap and build the business following the sale. Below is a brief capital allocation budget limited to just the funding from this round:
WinchPharma is split into 4 companies as below, a holding company, which wholly owns three subsidiaries for risk management purposes and to further protect the group:
Our consumer products business is strong, currently accounting for 70% of the overall revenue of the group. Our key customers include Kleeneze, Betterware, YPO and our loyal online B2C client base.
Our strategy is to continue to grow online sales in order to increase margin. However, we will be looking to keep exclusive lines with our mail order catalogue customers in order to preserve relationships and our critical wholesale income streams. For products which are outside the commercial scope of our mail order catalogues, we aim to invest in building our online and telephone client lists.
Average gross margin for products in this area is 78%, making this a profit centre focus – especially for those FMCG products which we can market effectively.
Our clinical software business is a new venture for the company. Having worked NHS estate relationships for many years, the company has picked up on operational difficulties at the grass-roots level. Working to bring efficiencies to the forefront of the healthcare profession, and help the NHS meet its digitisation target in 2021, we have developed clinical auditing software which helps make labour intensive auditing easy and paper-free.
With interest and intent from 3 NHS trusts thus far, the company is excited about the potential of this new software. We are now investing in further client reach. Once running, the clinical software business will be the most profitable area of WinchPharma’s operations – with an average gross margin in excess of 88%.
Following on from the sale of our consumer healthcare subsidiary, our clinical supplies business is ultimately diminished. However, we have retained core clients from the deal, which still trade with WinchPharma outside the specification of the products included in the sale. We are looking to work with these clients to develop further SKUs under our new brand, Skylark Hygiene. As part of this strategy we are working on several contract tender submissions for public sector supply to compliment our existing frameworks.
The end goal for this subsidiary will be to sell the company to a competitor. The company will pay a dividend to its shareholders from the sale of this asset once developed and attractive at a reasonable exit multiple for the group. Average gross margin for this area of the business is 45%.
People remain our key asset. To get the best from our personnel, we have developed a strong mix of individuals from the financial, accounting, business and technology sectors; as well as a cross-section of young tenacity with older, seasoned experience. The business relies on this cross-disciplinary mix of skills.
Our work with charities is well recognised. We aim to improve the lives of people where we can, even outside the remit of our trading operations. It makes us smile!
We are happy to answer any queries or questions regarding the crowd funding round. Please contact us for investor-specific questions by emailing firstname.lastname@example.org. We aim to respond within 24 hours.