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Rype Office
- 1. Circular Economy OfficeFurniture Greg Lavery greg@rypeoffice.com
- 2. 1 We believe thatall workspaces can and should be attractive, sustainable and lower cost. We make this easy for customers with: –Free office design –High quality remanufactured furniture –Full office refit
- 3. 2 We offer quality+ value in the £665M p.a. UK office furniture market Price Quality & Longevity Low High Brand-name new (£250-1,000/chair) £100 £200 £300 £400 £500 £600+ Reupholstered (£100-150/chair) Second hand (£50-150/chair) Made in China (£100-250/chair) Adjustable Desk Chairs Cannot compete with us because independent distributors will not distribute remanufactured furniture Cannot compete with us because they buy poor quality items from China or are poor at marketing
- 4. 3 Our circular businessmodel owns the customer relationship and sources furniture differently Manufacture Distribution Interior Design Office Clearance Waste Management Current providers: • Manufacturer • Dealers (mostly independent from manufacturer) • Interior designers • Office clearance companies • Waste companies • 2nd hand dealers Rype Office: Office Furniture Value Chain We start here – designing an attractive, productive office to suit the customer’s needs We source from the customer’s existing furniture And from the 2nd hand trade market We source difficult- to-find items new (distributor for 6 OEMS) Remanufacture to customer’s desired standard Guaranteed buyback offer OR Lease Circular Economy
- 5. 4 This provides uswith 3 structural cost advantages 1. Substantially lower (re)manufacturing cost 2. Vertical integration in a non-integrated industry 3. The sustainability of remanufactured furniture differentiates us, reducing marketing costs Structural Cost Advantages Sources: Rype Office costs; The Next Manufacturing Revolution: Non-Labour Resource Productivity and its Potential for UK Manufacturing, 2013, pp. 83-89. available at www.nextmanufacturingrevolution.org 80% smaller environment footprint than new <1/2 list price of new
- 6. 5 Remanufactured = sameas new in appearance & performance • £748 new list price • Top of Orangebox’s range New Orangebox G64 (OEM promotional photo) Remanufactured G64 (Rype Office photos) • <£280 from Rype Office (37% of new list price) • 5 year warranty (same as new) • New recycled fabric & gas lift with other surfaces recoated
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- 8. 7 Investment Plan 71% IRRfor this round With 30% EIS tax rebate = 93% IRR and 7X return on investment Investment Round • £400K • EIS pre-approved • Class A shares for £20K or more investment Liquidity event • 2021/22 • Trade sale or recapitalisation • Target valuation £20M (2X revenue, 19X EBIT, 23X PAT) Now 3-4 years To accelerate growth: – Ramp up marketing – Invest to secure supply – Cover working capital needs
- 9. 8 Team Dr Greg Lavery Founder& MD Previous startups: – Origin Solar, now a $1B solar retailing business – Lavery/Pennell Engineer with PhD in green building design Ex Bain and Booz 12 other staff, employed on an as-needed basis 6 furniture manufacturer partners (with whom we have distribution agreements): Trade partners: – Upholsterers – Desk/table top makers – Polishers – Powder coaters Ioannis Spyridakis Head of Operations Previous startups: – Drinks distribution business – Charter hire business – Solar farms Supply chain expert Ex shipping industry Duane Walker Project Manager Mechanical Engineer Ex Rolls Royce Aerospace Ex Prakti Now recruiting Bus. Dev. Manager
- 10. Example Rype OfficeProjects
- 11. 10 94% refurbished or remanufactured furniture 13%reclaimed carpet tiles 8 long term unemployed with disabilities employed
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