Backmarket UK Limited Research Update
Revenue insights...err, no.
I’m ambivalent about the Backmarket model. Is it great for customers? Maybe. Or is it the industry leader in a competitive race to the bottom fuelled by VC money literally being spanked up the marketing wall on the Tottenham Court Road escalator every now and then?
OK, so maybe I’m not ambivalent. But I am a fan of improving availability and access to quality refurbished devices as an alternative to buying new everytime, and they are one of the biggest brands in the sector, so with that in mind and the UK entity latest accounts being filed recently, what do we know?
Nothing.
Well, a bit more than nothing, but not really anything useful. The Backmarket UK Limited (13822037)1 legal entity was incorporated on 30th December 2021. First “Accounts for a small company”2 were filed a year later and the second set of accounts filed this week (03/09/2024).
Interesting that the accounts include an income statement given that they don’t have to. But less interesting in that turnover is defined as “amounts receivable from the parent undertaking, Jung SAS, during the period for the provision of sales and marketing support functions, exclusive of VAT”. So all we get to know is that the parent paid the UK entity £617,452 in 2022 and £2,051,937 in 2023 (presumably part of which was spent on the Tube adverts).
There’s also a “comprehensive income” number, showing a first year loss of £29,977 in 2022 and a profit of £220,720 in 2023. This might tell us that someone botched the internal charging or they couldn’t spend enough of their VC cash on the provision of sales and marketing support functions (there’s escalators at Bond Street too). I’ll bet the tax accountants were happy to have a profit on which to pay tax.
I would have a peek at the parent company accounts, but they haven’t filed any since 20173. Although there are an awful lot of acts to increase the share capital. Highly likely that the accounts are filed elsewhere and if I had a better understanding of French company law, I might be able to find them. Please feel free to drop me a note if you’re in the know.
There is an insurance programme. It was with Wakam / Cardif / Bolttech. It’s now with Watford Insurance Company Europe Limited and administered by Tavistock (International) Limited both Gibraltar based - so I can’t be arsed to get the accounts. Besides, it’ll will probably be with someone else again soon.
Peace,
sb
https://find-and-update.company-information.service.gov.uk/company/13822037
Companies are designated as small if they have any two of the following:
a turnover of £10.2 million or less
£5.1 million or less on its balance sheet
50 employees or less
https://commandes.greffe-tc-paris.fr/fr/societe/7501-2014B17016-804049476-jung-s-a-s.html