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Capital at risk
36
Months
10.0%
apr
Director
guaranteed
Capital at risk
Director guaranteed
Amount
£
You make
£
Minimum investment is £100
Total return
£
Monthly repayments
£

Hearth Products has been an innovator in the UK gas fire market for nearly fifteen years. We have now developed a revolutionary new gas fire product: a large format gas appliance which can be installed into a conventional fireplace opening without the requirement for extensive building work. Following our campaign earlier this year, we are now looking to launch another fireplace, the 950P, in October/November time.

Spreading innovation

At Hearth, we have developed a wealth of fireplace products and their intellectual property developments both in the UK and North America, with a high level of success. In 2011, the company took the decision to develop it's own range of gas appliances and market them through a network of independent retailers across the UK. The product range has been very well received and we are steadily growing this customer database, following last February's launch and looking to launch another in October/November.

Hearth Products continually develops new technologies for the fireplace industry. All products currently manufactured are protected by patent applications, a position we take wherever possible to protect our sales. We manufacture at cost levels, thus providing higher margins at about 50% gross, and run the business at much lower overhead levels than any of our competitors. We were one of the first companies to import UK developed gas appliances from overseas, which provided enormous cost advantages.

Another important part of the business strategy was to introduce a third party distributor. This customer would badge the product range and market the appliances independently, through their own distribution channels. Hearth Products is now successfully supplying products to these clients, with this additional sales revenue strengthening the company's position.

The market has slowly seen the introduction of more European styling in its products, generally in the form of larger glass fronted appliances. These products, although very attractive and designer looking, are expensive and require substantial remedial work to facilitate their installation. The new 'widescreen' product allows a large format appliance to be installed into a standard fireplace opening without any modifications. This provides for a much lower installation cost and a much lower appliance cost.

As mentioned earlier, our HE900 product was successfully launched in February 2017 and has received an outstanding reception from the industry. Furthermore, the HE900 has become a powerful USP and has opened many doors for Hearth Products. The HE900 is the only product of its type which can be installed into a precast flue; a precast flue does not consist of a chimney breast, but is concealed within the inner brick of the home.

We are now looking to launch the HE950 (Landscape), a similar product to the HE900L, which allows our clients to install these hearths into very small flue types. They also compete against the large format European gas fires, which demand a brick chimney breast or expensive balanced flue installation: the installation itself requires extensive building work.

The HE950L (Landscape) development is now complete and will be launched in October 2017 with printed marketing. The product has patent pending technology to protect this innovative appliance, like the H900L sister mode, which we expect to soon receive. We think this will continue to change the face of the domestic heating industry.

X

Business keeps the raised amount even if target is not met.
Loan - product type
Maximum
£ 80k
Raised
£ 80k
Investors
222
Est close date
Funded 6 years ago in 8 days

Where will the funds go?

Approve the launch of the 950P landscape version of the 900 fire
£5,500
Photography and brochure
£6,100
Stock of appliances and spares
£62,632
Working capital
£5,768

Key people

Christopher Stonier
Director
AC
Andrew Cooper
Director

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Business brand

ST16, UK

"Spreading innovation"

Business stage
Expansion
Incorporated
20 years, 10 months

Risk warning

Past performance and forecasts are not reliable indicators of future results. Your capital invested is not covered for compensation in the event of a loss by the FSCS. Tax treatment will depend on the individual circumstances and may be subject to change. Please see our Risk section before making an investment decision.