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Flooring Hut

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The smarter way to buy new carpet & flooring.

112%
 - 
Funded 18 Mar 2020
£50,000 target
£56,385 from 62 investors
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Business overview

Location Worthing, United Kingdom
Social media
Website www.flooringhut.co.uk
Sectors Home & Personal Mixed Digital/Non-Digital Mixed B2B/B2C
Company number 09611722
Incorporation date 28 May 2015
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Investment summary

Type Equity
Valuation (pre-money) £3.8M
Equity offered 1.46%
Tax relief

EIS

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Business highlights

  • Transforming the UK flooring industry valued at £2bn in 2017
  • 4.5 years disrupting the market with £7.65m+ in sales
  • 24,000+ online sales across domestic and trade sectors
  • Building a network of independent installers
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Key features

  • Secondary Market
  • Seedrs nominee min. £11.28 +

Idea

Introduction

We are a UK technology company operating in the flooring industry.

Our USP is our ability to connect a dis-jointed market, allowing the customer access to great value products, leading brands and a suitable, vetted local installer to perform the work.

Our customers love us because of our competitive prices, selection and availability. Our network of independent installers loves us because we bring them regular, profitable work.

To our knowledge, we are the only UK flooring retailer that offers this seamless integration & connectivity on a digital platform.

Over the last 4 years we have been witness to (and played a growing part in) the re-shaping of the UK carpet & flooring industry. Change driven by the Customer.

We operate a competitive online pricing strategy across all products. The key to our success to date, has been a consistent & reliable mix of:

1. Pricing
2. Selection
3. Availability (delivery/fulfilment/installation)

Intended impact

We intend to build a sector re-defining profitable business by gaining market share from the old-school, bricks & mortar operators.

Flooring Hut is simplifying the market for the consumer by offering a one-stop solution for flooring purchases & installation.

Flooring Hut management are guided by 3 principles:

1. Total customer obsession (Our Key)
2. Innovation (Our Driver)
3. Long term vision (Our Guide)

Substantial accomplishments to date

• £7.65m total value of sales to date

• Year 1 T/O – £135k

• Year 2 T/O – £214k

• Year 3 T/O – £2m

• Year 4 T/O – £3m

• Year 5 T/O (1st 6 Months) – £2.22m

• 24,000 total number of sales to date

• 10,833 online sales in past 12 months to 11.19

• October 2019 - online sales of £402,000

• November 2019 - online sales of £475,000

• Growing % of repeat trade business

• 62% consumer sales

• 38% trade sales

• 786 registered trade customers

• 140+ Flooring Hut Installer Network members

• Now 12,000 products available for sale

Monetisation strategy

Currently:

• E-Commerce sales to retail and trade
• Sales of leading flooring brands i.e. Polyflor & Forbo
• Sales of branded flooring accessories i.e. F Ball & Mapei
• Own-brand products (increasing)

Future Plans:

• GAME CHANGER: Create & develop a flexible & highly accurate room measurement tool. Integrate seamlessly on the FH platform with an AR room visualiser and add to basket/e-commerce functionality.

• GAME CHANGER: Develop and make live (on website & app) the ability for customers to purchase the installation/up-lift & dispose at checkout (in addition to purchasing the product(s) online).

• Installer network member subscriptions
• Margin from installers services
• Margin from estimators services
• Insurance industry contracts
• Landlord/Rental property owner subscriptions
• Alternative product sales (i.e. ceramic tiles)
• Expansion overseas

Use of proceeds

1. Develop our self-service platform functionality for customers. Enabling us to scale with reduction of high cost (customer) inbound = minimisation of marginal costs

2. Website & App: Top-level flooring category development. Distinct & differentiated consumer & trade presentation/UX/journeys, driving conversions, average value order & margin mix

3. Increase rate at which new products are added to our online shop – own-brand; carpets; laminate; wood; accessories

4. Growth, utilisation and integration of our UK Installer Network Members, creating a genuine blended online-to-offline (o2o) business model

5. In partnership with select manufacturers - create, develop and grow a range of own-brand Flooring Hut carpets and floors

6. Increased spend on targeted paid search marketing (primarily Google Shopping) – focus on higher margin categories such as own-brand, carpets and wood flooring. Move into generic flooring searches

7. Expand our reach on social media & affiliate marketing

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Only shareholders can access this page

If you successfully purchase a share lot of this business, you will be granted access.

Buy shares

Only shareholders can access this page

If you successfully purchase a share lot of this business, you will be granted access.

Buy shares

Only shareholders can access this page

If you successfully purchase a share lot of this business, you will be granted access.

Buy shares

Investing carries risks, including loss of capital and illiquidity. Please read our Risk Warning before investing.

Investing involves risks, including loss of capital, illiquidity, lack of dividends and dilution, and should be done only as part of a diversified portfolio. Please read the Risk Warnings before investing. Investments should only be made by investors who understand these risks. Tax treatment depends on individual circumstances and is subject to change in future.

This webpage has been approved as a financial promotion by Seedrs Limited ("Seedrs"), which is authorised and regulated by the Financial Conduct Authority. It is not intended to be a promotion of any individual investment opportunity and is not an offer to the public. The summary information provided about investment opportunities on this webpage is intended solely to demonstrate the types of investments available on the Seedrs platform, and any investment decision should be made on the basis of the full campaign. Full campaigns are available to investors who have become authorised to invest on the Seedrs platform. All investment activities take place within the United Kingdom, and any person resident outside the United Kingdom should ensure that they are not subject to any local regulations before investing.

Seedrs does not make investment recommendations to you. No communications from Seedrs, through this website or any other medium, should be construed as an investment recommendation. Further, nothing on this website shall be considered an offer to sell, or a solicitation of an offer to buy, any security to any person in any jurisdiction to whom or in which such offer, solicitation or sale is unlawful. Seedrs does not provide legal, financial or tax advice of any kind. If you have any questions with respect to legal, financial or tax matters relevant to your interactions with Seedrs, you should consult a professional adviser.

This business is eligible for SEIS relief - providing qualifying investors with income tax relief of 50% of their investment and certain other tax reliefs. Tax treatment depends on individual circumstances and is subject to change in future. Click to learn more.
This business is eligible for EIS relief - providing qualifying investors with income tax relief of 30% of their investment and certain other tax reliefs. Tax treatment depends on individual circumstances and is subject to change in future. Click to learn more.
Valuation rounded from £3,797,600

Pitch type

There are 4 types of investment pitch available on Seedrs.

  • Equity
  • Convertible
  • Fund
  • Secondary

Investing in a regular equity campaign is the simplest and most common way to invest in a startup. You decide which business you want to invest in, and if the campaign hits its funding target then you will become one of their shareholders. As the company becomes more valuable, so do your shares; allowing you the opportunity to share in the future success of the business.

Learn more about pitch type on Seedrs.

Seedrs nominee

This shareholding type is available with this raise.

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Secondary market

This shows if the business has opted-in or opted-out of allowing its shares to be bought and sold on the secondary market.

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Direct investment

This shareholding type is available and the minimum investment required to select it.

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Payment options

We are not able to accept card payments for investments into this sector. You can pay for your investment by creating a bank transfer or by using funds in your investment account. Your investment will only be completed once the funds have reached our account.