The British Matt Levine is high praise indeed! I wouldn't go that far, but I won't stop you if that's what you feel :)
Hard to say on marketing spend. Best we can do here is figure out what non-people costs are and make a very rough estimate.
Only other thing would be to see if there are public market comps that actually disclose marketing spend, and make a broad assumption on Euroloo having the same or similar customer acquisition cost, then guess at new customer numbers. Would almost certainly be wildly inaccurate though.
Great breakdown again Andrew! New sub that found out about you via the MFM Pod! Financial statements are foreign to me but I'm learning slowly thanks to you! What do you think Gary's depreciation charges for the year of £410k are? Stock bought with debt? Maybe I'm missing this in the financial statement and it would be outlined differently if there was debt? I read your Centre Parcs piece just now too so maybe I'm mixing up the debt stuff! How can I learn to do what you do here?!
Any other 'sweaty start ups' (primarily rental/hire businesses) that you think this could be applied to? As in outcompeting boomer companies with more tech-savvy customer acquisition/SEO stuff.
Yes -- scaffolding hire, heavy equipment rental (sanders, mowers, angle grinders), dumpster rental, and plenty more. Not to mention service-based businesses like pressure washing, mould removal, damp treatment, and plenty others.
E.g. here's a breakdown of a great skip / dumpster rental company with amazing SEO:
Thanks Jake! I'm a big fan of MFM pod so it was great to get a shout out on there.
The £410k depreciation charge for the year is depreciation either for the portaloos themselves, or for the trucks and vehicles they use to get the portaloos to and from site. There's probably also some depreciation on any computer equipment they have, and any fixtures and fittings etc. that they have in all of their distribution centres.
Without seeing thier numbers it's hard to be sure, but my guess is that ~90% of the depreciation is just portaloos and trucks.
Whether or not the assets were bought with debt wouldn't make a difference to the depreciation. The only thing that would impact that is if the assets were leased, rather than owned -- e.g. if Gary's leasing the trucks, then there's no depreciation charge (because they're not your trucks).
Looking at their balance sheet, I don't think there's any debt involved. Could be wrong though.
And re learning what I do: years of reading financial statements, asking questions, and being curious. Plus I'll be releasing a course where I show how I do all this analysis so keep your eyes out for that!
👏👏 the British Matt Levine??! Great read dude. Im guessing a big chunk of non people costs is marketing spend. Any thoughts on how to model that out?
The British Matt Levine is high praise indeed! I wouldn't go that far, but I won't stop you if that's what you feel :)
Hard to say on marketing spend. Best we can do here is figure out what non-people costs are and make a very rough estimate.
Only other thing would be to see if there are public market comps that actually disclose marketing spend, and make a broad assumption on Euroloo having the same or similar customer acquisition cost, then guess at new customer numbers. Would almost certainly be wildly inaccurate though.
Great breakdown again Andrew! New sub that found out about you via the MFM Pod! Financial statements are foreign to me but I'm learning slowly thanks to you! What do you think Gary's depreciation charges for the year of £410k are? Stock bought with debt? Maybe I'm missing this in the financial statement and it would be outlined differently if there was debt? I read your Centre Parcs piece just now too so maybe I'm mixing up the debt stuff! How can I learn to do what you do here?!
Any other 'sweaty start ups' (primarily rental/hire businesses) that you think this could be applied to? As in outcompeting boomer companies with more tech-savvy customer acquisition/SEO stuff.
Yes -- scaffolding hire, heavy equipment rental (sanders, mowers, angle grinders), dumpster rental, and plenty more. Not to mention service-based businesses like pressure washing, mould removal, damp treatment, and plenty others.
E.g. here's a breakdown of a great skip / dumpster rental company with amazing SEO:
https://twitter.com/andrewglynch/status/1521442811907743746?s=20
Thanks Jake! I'm a big fan of MFM pod so it was great to get a shout out on there.
The £410k depreciation charge for the year is depreciation either for the portaloos themselves, or for the trucks and vehicles they use to get the portaloos to and from site. There's probably also some depreciation on any computer equipment they have, and any fixtures and fittings etc. that they have in all of their distribution centres.
Without seeing thier numbers it's hard to be sure, but my guess is that ~90% of the depreciation is just portaloos and trucks.
Whether or not the assets were bought with debt wouldn't make a difference to the depreciation. The only thing that would impact that is if the assets were leased, rather than owned -- e.g. if Gary's leasing the trucks, then there's no depreciation charge (because they're not your trucks).
Looking at their balance sheet, I don't think there's any debt involved. Could be wrong though.
And re learning what I do: years of reading financial statements, asking questions, and being curious. Plus I'll be releasing a course where I show how I do all this analysis so keep your eyes out for that!
Thanks! Will definitely be signing up for the course when it's live!
Appreciate it -- will let you know when it's up and running :)
What a piece. Lovely work Andrew. You continue to blow my mind with your brilliant work.
Thanks Mofe! Really kind words