Concept Capital Group - The numbers don't add up? Problems with Repayments?

 It's been reported on the MoneySavingExpert (MSE) forums that investors in Concept Capital Group are having difficulty getting their money repaid in line with the terms of their investments. Various excuses are apparently being given but no money is forthcoming. The investor reports that payments had been up to date (but small interest payments are easy to fund, large capital is difficult)

As Concept Capital Group are quite active monitoring and replying to posts on this blog it would be appreciated if they can give their side of the repayment situation so the investor can get their money back.

It might be likely that Concept Capital are struggling financially as their latest accounts filed for the year to 31 October 2023 show a big decrease in the value of assets that they own. The value of their assets has massively dropped from £427,000 in 2022 to only £4000 in 2023 as a result of a huge revaluation reducing the value by £446,000 in that time. This presumably relates to the write down of the units that have been bought but for some reason they've dropped by 99% in the last 12 months - no explanation is given in the accounts for this change.

The value of assets is the units that investors have bought so if those are now only worth £4000 when investors are owed £2.3 million then that's not a good sign.

Concept Capital Group - Repayment delays?

Staff Costs?

The Concept Capital accounts show that they have 9 employees although their website website only shows 7. According to their marketing details they sold 26 properties in 12 months. This doesn't really tie in with needing 9 staff and the numbers really wouldn't support that. Even more surprisingly Concept Capital say that they outsource the sales process so it isn't even done by these staff.

The website claims prices start at £37,999. With only 26 sales it's hard to understand how that could support 9 staff including the Managing Director, a Head of Operations, Head of Business Development which are not low salary roles unless most of the purchase price is funding staff costs.

The website and other information provided by Concept Capital give the impression that they are providing a solution to homelessness. On their own figures with creditors of £2.3 million (ie people who have paid them for a plot) this would equate to under 60 units that they have in place. Hardly a significant dent in the problem.

The numbers don't add up. Hopefully Concept Capital will be able to provide details to back up all their claims and reassure investors that these costs are accounted for.

There are lots of things missing from their site and information. They say they are selling modular homes so unlike a static caravan these will need to be built. How much cost is allowed for that? If the investor pays £38,000 for a unit, what proportion of that money is construction? What is commission? Where does the money to pay 9 staff and marketing agency come from?

The risk warning is clear - unlike the information given to investors - that capital is at risk and you can lose your money. Hopefully investors not getting their investment back on the terms that Concept Capital Group agreed in their contract isn't a sign that they are in trouble and could go bust.

Concept Capital Group - Concerns about Repayments?