Limited information is being provided at this time

Last updated: August 14, 2017 at 21:15 pm

We actually got some real news from Houseology today, initially I noticed a response from Stuart McGhie on the discussion board apologising for the delay in providing an update and also stating that they have “raised a further £400k from existing investors” apparently to allow them to go from a loss making company with lots of stock to a profit making company, I presume with less stock? Further to this, the post states that we investors should have received an email from the chairman detailing progress, I didn’t get an email from the chairman – but I did get an email from Kirsty Grant (of Seedrs) announcing a new round in Houseology for existing investors.

The (£400k) round is now live and there are a few things worth noting.

Perhaps most interestingly, it’s a down round i.e. the supposed value of the company has been reduced, in this instance from just over £9.5m to just over £5.15m – a significant drop! I’m not sure if this is a first for Seedrs, if not it’s certainly a rare occurrence. For a company that provides zero updates for 9 months and has a juicy loss of over £5.6m sitting on their balance sheet at the end of June 2016 having lost over £2.1m over the course of the preceding year, I’m not sure the new valuation is overly enticing. Other investors seem to agree as they’ve managed to raise just £156 between lunchtime and this evening.

The next thing to mention is that the pitch is almost completely void of any detail, we have literally one paragraph about the company, a brief mention of the decreased valuation and a mention of the attached letter (which I haven’t read yet) – the pitch ends with the (I’m sure unintentionally) ironic words “limited information is being provided at this time.”

One final thing to mention is that the post on the discussion board seems to contradict the pitch. To quote Stuart McGhie “We have raised a further £400k from existing investors”, so if they have raised £400k why are they asking us? I can only assume that these funds will materialise if when the pitch fails, perhaps the chairman’s letter sheds some light on this, I certainly hope so.

Update: Since writing this article I’ve had an update from Stuart McGhie that clears up a few things:

  • They’ve already raised £400k cash and it is in their account.
  • There is a total of £400k of shares available to shareholders.
  • The down round reflects the losses incurred.

I’ve been keeping track of the pitch since its launch – so far just over £650 has been committed from 11 investors and the discussion board has just one lonely (unanswered) post.

Locked out?

Another seven days have passed and still no news from Houseology, last week Stuart McGhie suggested an update might be posted in the next seven days… Well, those seven days are up and we have nothing.

They’re still happily posting interior design related tweets on Twitter and it also looks like their website has had a bit of an update, I think the ‘Trade’ section is new and the category section doesn’t look quite finished.

Things are clearly happening, recent (mixed) reviews suggest items are still being shipped – It’d be nice if we could just be told exactly how things are going.

News (kind of)!!! – Houseology

After an email and a few Tweets, I’ve managed to coax Houseology out from their prolonged radio silence! In the words of Stuart McGhie (Finance Director according to LinkedIn):

“We have had a brief update ready to go for a few weeks now but just not managed to push out as the timing hasn’t been quite right.  I can only ask that you remain patient for just a little while longer and something should be posted in the next 7 days.”

So, let’s see where we are next Monday!

Is Anyone Home?

Houseology haven’t given us Seedrs investors since October 2016 despite several calls from investors to do so. This comes despite daily tweets and some relatively recent TrustPilot reviews.

Accounts filed in March (2017) for y/e 30th June 2016 show losses for the year at £2.1m so they’re now running a P&L account in excess of -£5.6m, add to this the fact that they had over £900k due to creditors in the coming year, a cash balance of £140k, stocks of £155k and debtors of £257k and things don’t look too rosy. I can see one of a few things on the horizon; another raise (given their lack of updates, I can’t see this going well on Seedrs, if they do raise I predict CrowdCube), they wind up when they run out of money in the not too distant future or they go into zombie mode eeking out the money as long as they can in order to survive.

I’m also not sure what the ‘investments’ on the micro accounts are for – the three companies cited all show overdue accounts (OHSO Interiors Limited, OHSO Homes Limited & OHSO Design Limited) all of which have the same sole director, one Kathleen Mooney. Digging into the CH documents some more and the story gets more confusing – I’m not sure what’s going on with the confirmation statements (some appear to be blank) or the directors, I’m not even going to speculate how they tie together.

I tried emailing a couple of weeks ago and got zero response, I’ll try a Tweet and see if that prompts them into action.