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Cobra Beer loses £13.1m whilst angels wait

The Palace of Westminster at night seen from the south bank of the River Thames. Victoria Tower and the House of Lords is on the left. The Clock Tower of Big Ben and the House of Commons is on the right. The spire left of centre is the 300ft ventilation chimney above the central lobby. The twin towers with flagless pole just visible in the background is Westminster Abbey. A 2 x 6 segment panoramic image taken by myself with a Canon 5D and 85mm f/1.8 lens.Image via WikipediaA previous post commented on the long wait for the angels in Cobra Beer and the employees who were told that if the company was sold there might not be a job for them – not bad for the person who gives great motivational talks. I am left to wonder why people who have raised funds from others to invest in their business have time to join the House of Lords, go on trade missions, appear on TV shows whilst back at the ranch, losses have been made for a second year running. This time up from £4.4million to £13.1million on sales of just £43.2million.

How do you lose £13.1million on sales of £43.2million – I guess by taking your eye off the ball and enjoying trips and jollies although I am sure that supping with the mighty will bring in sales next year.  Heard that before?  Expansion to the USA has been aborted and a cautious note for the future is sounded: “The group sells a premium product at a premium prices and its business is therefore especially liable to be affected” in an economic downturn.

As an angel I have suffered losses whilst founders massage their egos on the global stage. It is better to back a dull founder who has a simple mission to increase the value of the business for the founders, investors and employees. When that has been achieved, then the global stage is deserved.  But dull founders make poor speakers but they are so powerful in small groups.  I have always been puzzled how people have the nerve to talk about their success when up to the knees in other people’s money.

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