Lutra Marine Limited

STRUCTURESingle company deal
MIN. INVESTMENT£10,000
SECTORTechnology (Hardware & Equipment)
CLOSING DATE26 February 2021
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Summary

Lutra Marine have developed precision dredging tools for use in environmentally sensitive ports, harbours and marinas. Lutra's patented technology allows for the safe removal of sediment and rock from any aquatic environment without causing a drop in the local water quality.

Conventional dredging methods produce plumes of silt and increase water turbidity which causes damage to sensitive marine environments and affect breeding areas for economically important fisheries such as oysters and sea bass. 

Sediment regularly fills up ports, harbours and marinas reducing the depth of water and preventing safe navigation and mooring. Routine dredging is vital to keep these sites open and commercially viable.

Lutra Marine offers its equipment for direct sale, along with equipment leasing packages. They also offer a full suite of dredging services for both small and large scale dredging projects.

Lutra Marine - providing precision dredging without affecting the local water quality.

Highlights

  • Prototype successfully developed and tested in partnership with Plymouth University.
  • Pipeline of potential clients who have requested demonstrations.
  • International patents filed and approved.

Key team

Roger Grimshaw - Chairman

25 years’ experience, Roger is a non‐executive director at Feritech Limited, business advisor to HydroMotive and Hugo Bugg Landscapes.  Roger was a Director with Oxford Innovation during their last round of EU Funding.

Daniel Wormald - CEO

Having developed the concept for Lutra Marine's innovative cutting tool during his A level studies, Daniel decided to pursue the idea and launch Lutra Marine. It quickly became apparent that there was a need for the technology and interested clients. Daniel has been working on the technology for the past 4 years, having developed working prototypes and patented technology.

Graham Wormald - Chief Technical Officer

With over 30 years' experience, Graham has extensive engineering experience gained from the Ministry of Defence, FCO and managing multi-million pound government infrastructure projects. After taking early retirement from the Civil Service in 1999 Graham became an independent IT consultant working across utilities, pharmaceutical and civil nuclear sectors before taking the role of CTO with Lutra Marine.

Financial overview

Investment sought: £150,000

Equity offered: 15%

Investment raised: £125,000

Use of funds: Production of the final cutter head and enable the company to scale up and capitalise upon the interested leads. Build the team and marketing capabilities of the business. 

Financial forecasts: Lutra Marine forecasts to turnover £654k in its first year (2021), delivering a net profit of £152k. The team have already received interest and are preparing quotations to clients which will bring in more than £220k of this revenue and are confident that from the pool of existing leads they will be able to secure the balance of forecasted revenues.  By the end of the third year the team expect to turnover £4.7m, delivering just over £3m of net profits.

Products and services

Lutra Marine provides equipment in a modular system comprising of 1 metre units which can be attached together to make 2 or 3 metre units to match the client's needs.

Price Points & Gross Margins: A 1m unit costs £14k. This will be hired out at £650 per day.

Manufacturing Process & Location: Cornish subcontractors, hydraulic equipment purchased and fitted.

IP Detail (Patents, Reg Designs): Cutter head is patented in the UK, Europe, Canada and USA.

Key Target Customers Year 1: Ports (Hamburg, Falmouth, Fowey, Hayle, Padstow, Bideford and Exmouth Marina), Dredging companies (Wyre Marine Services Ltd, Land and Water, Jenkins Marine, Ebsford Environmental), Offshore support (CWind).

Sales Lead Generation: Initial calls and emails. We have contact details for the ports and dredging companies. DIT will arrange for the UK embassy in Berlin to contact the Port of Hamburg after the UK demonstration. All of our initial telephone calls so far have met with 100% requests for demos.

Demand Validation: 14 requests for demonstrations. Validation with target clients.

Fee summary

Performance Fee: 

In order to align interests between the Company Mentor, the Investment Manager and Investors, no performance incentive is payable on any Investment until Investors receive cash proceeds equal to £1.05 for every £1.00 invested in each Investee Company. The performance fee will then be payable to the Investment Manager and the Company Mentor or related parties as follows: 

1. On any increase in value on an individual investment in an Investee Company up to £5 above a hurdle rate of £1.05 (for every £1 invested) a performance fee will be charged of 20% (it is noted that the 20% will be split 5% to the Investment Manager and 15% to the Company Mentor) on the amount of the increase over and above £1.05 up to £5, and 

2. On any increase in value on an individual investment in an Investee Company over £5 (for every £1 invested) a performance fee will be charged of 25% (it is noted that the 25% will be split 6.25% to the Investment Manager and 18.75% to the Company Mentor) on the amount of the increase over and above £5. 

3. It is noted that no performance fee will be charged on any amounts below the hurdle rate of £1.05 for every £1 invested. 

 

This performance incentive may be payable as a fee by the Investment Manager on behalf of the Investors out of cash proceeds in the Fund on behalf of Investors, or by way of proceeds from equity in an Investee Company by the Company Mentor or related Parties. Different investments may require different structures but will be to equivalent economic effect. 

Documents

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