Genpower are the only UK importers for several power equipment suppliers from across the globe. They supply a huge range of power equipment including petrol generators, garden machinery, and construction equipment. Having raised successfully on our platform in 2016, they are back to complete another round to develop a new lithium-ion battery-powered garden machinery range which will present excellent growth opportunities.
Exclusive UK importer of high-quality power equipment
Our customer service and high standards won us a partnership with Hyundai only a year into our formation, and why we have been awarded several commendations by institutions such as The Sunday Times and The Chamber of Commerce who both rewarded us for our rapid growth.
We had a successful round of funding with Crowd2Fund in 2016 that helped us to expand internationally, and introduce a new ordering system that helped to streamline our processes. This time around we are once again asking for the help of the Crowd2Fund investor community to aid us in the next stage of our product development: we are working on a new lithium-ion battery-powered garden machinery range. These products present a fantastic growth opportunity for us by selling throughout Europe via Amazon.
Here are some of the sites we sell our goods to:
Where will the funds go?
A. Hello, immediately after the Brexit referendum in 2016 the GBP/USD exchange rate dropped by 20%. We had to pay several hundred thousand pounds to the bank to cover this fall on our stock funding. We did not have any hedging in place. Subsequently, we could not afford to take in the containers of garden machinery at the port. We missed the garden machinery season and incurred large demurrage fees. We had to sell the garden machinery at cost to keep the cashflowing during the winter of 2016/17.
A. Hello, we have a number of websites offering mobile functionality:
1. genpower.co.uk this is mainly for our dealers and customers to order parts.
2. hyundaipowerequipment.co.uk This is an ecommerce website
3. thepowersite.co.uk Ecommerce website
4. p1pe.co.uk P1 brand website
A large amount of sales are made on Amazon and Ebay channels.
A. There are a number of areas we may be affected by a No Deal Brexit.
1. Short term, it may encourage sales of goods currently in stock, as we see our dealers taking on additional stock prior to March 29th to ensure continuity of supply.
2. The GBP/USD exchange rate may fluctuate. We have forward contracts in place to protect us against a devaluation of GBP for the next few months.
4. Uncertainty - The sooner we have a definite decision the better, nobody likes uncertainty.
A. This loan will be used to launch a new range of Lithium-ion cordless garden machinery. There is big growth potential in this sector. Previous funding has been used to grow the business from start-up to the current £10m in annual sales.
A. Hello, All of the current directors work 100% of the time on Genpower Ltd. Other directorship responsibilities require absolute minimum time and are taken care of outside of the working week.
A. Hello Jakob, Thank you very much for your positive ideas and support. We will work on this with Trustpilot, as it is not up to the standard we need.
A. Hello Jakob, We changed from Mainly B2B to B2C at the begining of 2018 and we were not prepared for the volume of sales and aftersales enquiries this generated. We also did not have the new order management system in place, so were finding it difficult to keep up with the volume of orders being processed. We fell behind with a few deliveries and this increased the aftersales enquiries, which was also under pressure. We now have a system that can handle 1000's of orders a day.
A. Hello. In 2016 due to the Brexit referendum, Sterling devalued by 20%, we did not have any hedging in place, which was an expensive mistake on my part. Our competitors may also have been hit if they also did not have forward contract in place.
I am very confident about the next 3 years. We were hit very hard by Brexit, but have learnt a lot and have a much slicker business now. We are experiencing strong growth in the D2C market for high volume consumer goods where the Hyundai brand is very strong. With the right backing the growth potential for this company is huge. The higher interest rate is a direct result of the poor year we experienced which the Brexit referendum triggered in 2016/17.
A. The strength of the pound does affect our costs, however, we have a strong forward hedging position to cover the next 6 months in place and as we are the exclusive importer for Hyundai products for the UK and Ireland, we have control over the pricing structure without losing out to direct competitor importers of the same products. As all products in this sector are imported from the Far East, all of our competitors would also be affected in the same way by Sterling devaluing.
A. We are launching a new range of Lithium-ion battery powered cordless garden products for distribution throughout the UK and Europe, direct to the consumer. The cordless market is in rapid growth and will become the mainstay of garden products over the next 5 years taking large volumes of market share away from petrol powered and corded electric garden powered products. Battery powered products are ideal for D2C mail order sales thanks to minimal aftersales and servicing requirements.
A. We have increased efficiencies by implementing a new cloud based order management, stock control system which reduces manual processes. Our route to market is rapidly moving towards a direct to consumer (D2C) model allowing us to sell Hyundai branded products direct to the consumer, offering excellent, market leading value for money in this fast growing market sector. We now sell one of the world's leading brands in Hyundai, direct to the consumer at the best prices online.
In 2017 we were badly hit by the devaluation of Sterling following the Brexit referendum. We incurred high demurrage fees and had to sell the summer garden machinery out of season at reduced margin to maintain cashflow. A very difficult year and a lot of lessons learnt.
Please see figures below:
Gross Profit: £1.8m
Net Interest: £87k
Pre tax Profit: £450k
Gross Profit: £2.04m
Net Interest: £118k
Pre tax Profit: £351k
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