Investment Invitation – May 2020
Overview
Our Business
• Growing, start-up sports nutrition company orientated towards
stomach settling ginger and all natural ingredients as differentiator.
Provides alternative to typically artificial and sickly sports nutrition
otherwise available
• Core product range – energy drink, low calorie drink and gel. All
natural ingredients in dissolvable powder form. Available in sachets
and tubs with environmentally friendly focus
• Broad customer appeal with particular resonance for participants in
growing endurance sport sector, where gut disturbance is very
common
Background
• Founded by Will Townsend and George Ashley in Edinburgh.
Incorporated and trading since 15th September 2017
• All products made in UK.
• Registered in Scotland company No. SC515550, VAT 248258972. EIS
tax relief eligible
• Current equity: 58.2% Co-Founders; 40% James McKay; 1.8% held
by Huw Stradling, Co-Founder no longer actively involved
• 2019 turnover – £125k, up from £65k in 2018. 2020 strong so far
amidst Coronavirus disruption
Will Townsend and George Ashley – Co-Founders
• Committed to driving Active Root forward and growing the business.
Both have detailed understanding and passion for endurance sport
• Will – 10+ years experience (8 at Baillie Gifford) working in marketing,
product design, project management and operation and management
roles. Innovation skills – original idea conception and NPD
• George PhD – 8+ years in Biotech business development. Experienced
in winning new business and growing existing clients.
Lean Operation
• 4 staff members, including Co-Founders
• Office and fulfilment bases in Edinburgh, stock warehouse in
Glasgow
Innovation and Advantages
• Unique differentiator with ginger settling stomach
• Peer reviewed study on benefits of ginger on athletes from Heriot
Watt
• UK trade mark on ‘Active Root’ name and wording imagery
• Green focus – unique Gel Mix removes need for single use
packaging and environmentally friendly powder refill scheme across
drinks range
Established Sales Channels
• Sold online on own website, Amazon, Wiggle and other sites, at
events and through retail, including Holland and Barrett
• Strong repeat online custom over last 3 years - 70% of sales driven
through Active Root website and Amazon
• Selling across mainly in UK and Ireland B2C and B2B, B2B
mainland Europe, Far East and Australasia through Hong Kong
• 3 UK retail distributors (125 shops) – UNNU (running shops) Cycle
Division and Health Food Store
• 3rd party retailers, Holland & Barrett (450 shops), Wiggle, Chain
Reaction Cycles, Sigma Sports
• Exporting several pallets per year to 2 distributors - Value Source
Trading in HK and Bike Components in Germany
Current Advertising and Marketing
• Loyal and active fan base – 8000 followers across Facebook and
Instagram
• Active email database of 8000 contacts
• High website sales conversion rate – 12% YTD
• High average customer website spend p.a. £60 (Q3 2018 to
present)
• Events and expos driving awareness and sales
• Sponsorship of athletes and teams
 Investment Opportunity
Overview
• Proven 2 year track record of sales and growth - currently Investment Areas
growing organically at 100% per year since 2017 • Recruit marketing executive to work alongside existing team
• Genuine differentiator in ginger within sports nutrition sector to speed up task delivery
• Loyal customer base across UK, average >1.6 orders p.a.(Q3 • Recruit fulfillment assistant to enhance logistics capabilities
2018 – YTD) • 6 month focus on scaling the brand and growing into broader
• Green focused product set with recent launches health and wellbeing sectors.
• Genuine Scottish growth company – forecasting £1.5m • Informed Sport testing and brand advocacy used as a driver
turnover by end of 2022 for marketing and sales growth
• Experienced team, highly motivated founders • Provision of event kit to regional marketing managers
• Established initial international sales channels for
diversification. Significant potential for future growth Investor Profile
• Interested in the business and concept
Opportunity • Hands on and providing guidance and support - more than
• Seeking £265,000 in investment for 15% equity
just a financial input
• With investment there is a massive opportunity to grow proven • Background and well connected in FMCG and sports
existing sales channels faster brand marketing
• Achieved through a larger more aggressive resourced marketing
strategy across sport and wellbeing sectors For further information including a full business plan please
• Lean, measured investment - all costs kept to an absolute
contact:
minimum
• Self sufficient and cash generating mid 2021
Will Townsend
Managing Director, Co-Founder
3 Year financial forecast 07583093017
Projected Gross Projected Net Profit enquiries@activeroot.co.uk
Revenue (£) (£) www.activeroot.co.uk
Instagram Facebook Amazon
241,240 (23,740)

806,600 104,644

1,515,480 552,455