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| Headline |
Solar powered, Wimax/Wifi enabled Information Pillars |
| Investment Stage |
Private Placement |
| Sectors |
Media/New Media/Publishing - Advertising
Retail - Signage
Media/New Media/Publishing - Graphics & Design
Energy - Solar
Telecoms - Mobile |
| Deal Value |
500,000 |
| Currency |
UK - GB£ |
| Country/Region |
UK/Western Europe UK South East |
| Summary |
The Company manufactures and installs information pillars (“IPs”) in the UK. IPs are freestanding (though immoveable), high quality publicity sites, which provide the only opportunity throughout the UK for local, regional and national businesses, town councils and events to legally use poster publicity at an acceptable cost. At around £30 per week per panel, the Company provides the most competitive publicity in the UK. Towns receive a share (up to 20%) of revenues less direct costs. Payment for space is generally due in advance, paid mostly by standing order or credit card. Approx 50% of the Company's customers renew their bookings.
Whilst widely used throughout the continent, at present the Company is the prime provider of IPs in the UK, whereas the UK market is devoid of national mainstream competition. The Company’s IP’s are presently operational in over 40 towns, but with 1,475 larger towns in the UK and 20,000 smaller towns, it is not even scratching the surface of the market potential. At the present time – April 2009 – 226 pillars (678 panels) are in situ nationwide. There exist consents for a further 65 pillars, and 5 towns are going through planning stage representing an additional 53 pillars, increasing the potential turnover with a similar staff structure. The Company intends to be operational in 100 towns by 2011 with consent in hand in a further 30 towns.
The Company's information pillar is a glass reinforced polymer cylinder, around 3m high and 1m wide. The Company now owns the production facility, having acquired the moulds and expertise in February 2008. At present, the production capacity is two pillars per day. The pillar accommodates three 6-sheet poster spaces (a complete full height side). The posters are largely designed by the Company's staff and may be produced by any large format printing company.
Part of the funding required is earmarked to integrate solar powered illumination of the pillars, making SM’s advertising the first truly environmentally friendly publicity in the UK. Illumination will not only enhance the site asset value but also the sales power and prices. A major opportunity exists to accommodate WiMax/WiFi equipment within the pillars to provide essential services to local authorities, the government and business for wireless broadband, Bluetooth, footfall sensors and incognito CCTV.
The Company is trading at a profit. By 2013/14 the gross revenues are forecast to rise to over £4.4m. Net operating profits are anticipated to be over £1m The cash flow forecasts are based on a density of just 6 pillars per town, compared to a typical continental European town with 70,000 people which would have 500 pillars. At the average display charge of £30 per week, a year’s full occupancy produces gross revenue of £4,500 per pillar implying a market potential of £135m in just the larger towns, assuming 30,000 pillars.
Funding requirement amounts to £500,000 in order to take advantage of the opportunity to dominate a nationwide service similar to those already operating successfully throughout the continent.
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