NeveFest.com – Early Investor Information

Dear Investor

This short-form document is an abstract from the Nevefest Business Plan pack. It is provided to you in confidence. We request that you respect the commercial sensitivity of this information.

If you register an interest below, a Nevefest Director will contact you with fuller details.

Summary

NeveFest Ltd will deliver elite-level packaged Ski Holidays in Italy.

While this is a crowded market, the Nevefest Unique Selling Point is as follows:

Accompanying the holidays will be a branded mobile unit with a professional sound system and DJs that will change venues daily, both on the mountain, and in the resort. Music events will be run on a daily basis at lunchtime and in the evenings at selected bars and restaurants. A wide range of musical tastes and age groups will be catered for.

Recent years have seen a large increase in music-based attractions in mountain resorts, but these have mostly been one-off annual events or small events organized by an individual bar.

In Italy in particular, local musical tastes do not match those of northern European guests.

Nevefest will operate a consistently branded, multi-venue, music event program, aimed at northern European demographics, marketed to its own clients, and optionally to walk-in guests.

All events will be ticketed, with tickets providing discounts on food and drink. Tickets will be sold as part of the overall holiday booking process. As prospective guests will have selected Nevefest because of the music USP, most guests will buy event tickets.

Holidays will operate from late October/beginning of November in the higher resorts, throughout the ski season in Val d’Aosta and Val di Susa and returning to the higher resorts until late May. This will allow us to host 14 different NeveFest events per season. The NeveFest website will allow visitors to book and pay for holidays in weeks when there is no Nevefest event.

Addressable Market

In 2017 Statistica (https://www.statista.com/statistics/801008/europe-number-of-people-skiing-by-country/), published a national breakdown of Northern European skier numbers, showing a total of 40.8 million skiers in the European market. Many of these make multiple trips in a season.

Target Market

The Unique Selling Point for Nevefest is the musical event programme. This will reduce the total addressable market but will be a unique selling point for the remainder.

This type of event is becoming increasingly popular. In the Chamonix, France area in recent years several significant events have become established:

https://chamonixallyear.com/lowdown-on-april-music-festivals-in-chamonix/

http://cosmojazzfestival.com/

These events alone attract several thousand attendees.

Some bars and restaurants now organize their own music attractions. For example La Folie Douces In Megeve:

https://www.lafoliedouce.com/en/folie-douce-spots/saint-gervais-megeve-en.html

has DJ-hosted sessions every afternoon in the winter season. Head count at this single bar for afternoon sessions is in the low hundreds every day.

Nevefest essentially “packages” this type of event, replicates it across multiple sites at varying scales, removes the need for the venue to be involved in music event organization, adds ticketed entry and sells the result as part of an overall holiday package.

Earnings Estimates

There are two elements to the offering: Holidays and the Events. These will be offered to book as a single package, but internally are separate P&L lines.

Median per-client per-week gross Holiday earnings will be over 450 Euros.

A median per-client per-week gross Event ticket will be 170 Euros.

Capital and other Costs

Leasing will be used where possible.

Nevefest will source a suitable van and sound system. Capital costs for these (using a low-mileage used van) are in the region of £33,000 and would be amortised over three years.

Banners, flags, flyers etc and general marketing costs are estimated at £6000 and will be assumed to be amortized over one year.

To provide cover for late payment, partner advanced billing and other unforeseen items the initial capital should be at least £120,000.

Event staff will be operations director, two road crew, one DJ, and two locally-recruited ticket clerks/security guards. Initially, the minimum wage will be offered and all staff will be recruited on a casual-work basis.

Marketing

Initial marketing will be online, social media, posters/flyers and ski industry publications.

Newspapers, radio and television advertising will be used when revenue permits.

Event Break Even

There are three event types, with associated break-even guest numbers:

Hosted DJ 72 guests

Recorded DJ 41 guests

Band 104 guests

A mix of these event types will be used in any given week.

Sales Channels

In year one, sales will be handled via a network of local agents working on commission-only.

Year One Projection

Break-even guest numbers for the music events are below 100 per week assuming 7 events per season for three seasons.

The 2018/19 season will be a “pilot” with a smaller number of events late in the season.

2019/20 will target the 7 event weeks per year level. Subsequent years will target a doubling of the event weeks and a large increase in per-week guests.

For the 2019/20 ski season, with 7 event weeks scheduled and 100 guest bookings per week, revenue will be approximately £200000.

Total operating costs will be approximately £80,000 and gross pre-tax earnings in the region of £200,000.

For the 2021/22 ski season, with 14 event weeks scheduled and 1000 guest bookings per week, gross pre-tax earnings will be approximately £5m.

Capital and Share Issue

Nevefest will privately issue the remainder of 120,000 preference shares at £4.75 per share.

As the year one capital requirements are only £120,000, a take-up of approximately 21% of the initial discounted offering will be required.

Year One Share Dividend

Year one gross pre-tax profit on a 7-event basis is projected at £200000. If the offer is fully subscribed, the gross pre-tax revenue per share will be approximately £1.66.

 

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