Automobile Entrepreneur Builds A Business After Serious Accident | Dragons’ Den

Foreign [Music] My name is Andy Bates and I'm here today To ask you for an investment of 50 000 Pounds for 10 of the equity in my Company a b performance Limited I set the company up after a high-speed Racing accident effectively ended my Racing career and my fire service career Of 24 years During some long and full stays in Hospital I had time to consider the Future the area that interested me was Motorsport At the same time British Motor Racing Circuit owners were throwing their doors Open to the public anyone could take to The track in the car of their choice It became obvious to me that the bike Powered car had a large part to play in All of this Relatively low build costs and the Ability to out accelerate outbreak and Out turn many Factory supercars costing 10 times the amount So first came my engine business Sourcing supplying importing stripping Rebuilding and tuning Superbike engines Specifically for use in cars the next Logical step was saber it's like all of The information and produce our own Factory Supercar saber at its first race This year went from position 26 to Position two in 18 laps

Thank you very much for your time and I'd like to open the floor to questions Now can I have a look at the car yes [Music] An eye-catching pitch from automobile Enthusiast and debates he's hoping that By having two sides to his business Manufacturing racing cars as well as Servicing the motorbike engines he'll Tempt the dragons to invest 50 000 Pounds for a 10 stake Something seems to have intrigued Duncan Bannatyne Sandy tell me a little bit more about Your accident Um I basically ran out of talent I've Made a mistake one day and hit the wall At Alton Um very very fast I broke my spine in Four places and uh basically shattered My right knee how long did it take you To recover about two years And when you were racing that was a Part-time thing and you were also a Full-time fireman yeah when I then went Back Um I had to prove that I was physically Fit enough to do the the operational Side of the job I knew the damage to my Right knee in actual fact was was the Big problem so Um I was I was basically went out on ill Health in the end right This business came as a change I wasn't

Expecting I'd worked for the fire Service for so long and I think you go Down the routes of thinking well because I've done this for so long that's all I Can do I had to find something and the only Thing I knew how to do was Motorsport A compelling story from the passionate Entrepreneur But what of his company Theo perfetus is next to cross-examine The suffolk-based race engineer Andy I'm Theo Pleased to meet you Um before I get to the serious questions Was it's not just 60 not 200 probably Around about 3.6 to 3.8 second Mark okay That's a 60. yeah okay you haven't given Me a price to give you an example this Car here retailed at 25 000 pounds Um what chassis you've got online we Make our own you said the investment is To go into your main holding company yes How long have you had that and does it Make it what's the numbers on that if I Can give you the background that led to Where I am now five years trading as a Sole Trader Um during which time total turnover 630 000 pounds of which I generated 67 000 Pounds net profit uh didn't see the Profits I should have seen because I was Planning into this project basically This year I changed the company to a

Limited company I've got fixed assets of about 120 000 Pounds and I've got work in progress in The unit valued at 15 000 at the moment Okay What do you think I or any of the other dragons Can add to your business uh if I'm Totally honest with you I have a very Very high understanding of this of this The mechanics of all of this the Business lessons have come hard and fast I was never a businessman Um I know I can make money doing it What I'm looking at now is getting Somebody on board who has an interest in In the company and and helping me push It to what I think the next level is But responses the dragons have certainly Warmed to Andy now Peter Jones wants to Drill down into the company financials [Music] Hi Andy I'm Peter Um compelling pitch from a visual Perspective I love cars Um You're taking a passion a love the Reality is now you get into a stage Where how do I turn this or make this Into some sort of business that is going To give me a bit of a future You know where could this go where is The money My projections are as follows I've

Assumed 10 growth and I've based it on The sale of two cars in Year One Five cars in year two so give me a give Me a profit number the first four months Of the year usually our quietest time I've actually had my best four months of Trading this year okay Um I think we will turn over two hundred Thousand this year and I will make forty Thousand pound net profit year two hang On hang on You sell the cars at 25 000 each you're Only going to sell two that's fifty Thousand where's the other 150 000 in Revenue coming from from the rest of the Business it's an investment in the whole Company okay so where's the the rest of The business then in terms of that Profit and that 150k I've already turned Over 60 000 in the first four months of This year so what else do you do uh Servicing tuning rebuilds of cars that Are crashed anything to do with racing Driving bike engine cars or we do a b Performance [Music] Quick fire exchange and Andy seems as Knowledgeable about his numbers as he is With his engines but he's yet to receive An offer has Hilary duvet heard enough To part with 50 000 pounds Ande Have you thought of any other markets

For this yes I've actually got a chap in America who's been asking questions About what are we doing with the car Could we get one out there to have a Look at I've got a guy in Switzerland Who's inquiring about the car but it's Not cast in stone and I wouldn't dare Put that in front of people and say look We've got a Marketplace Okay So I'm struggling to find a bigger Market than what you're currently Looking at I mean they can't be used as a road car Can they yes you could have this car on The road so as long as we comply with Emissions with the position of the Lights Um this one's too low we'd have to jack It up a bit how safe is it we actually Have an issue with the fact that we've Got to make the body work lighter Because I wouldn't compromise the Chassis it's a fully triangulated Chassis the side impact bars but you've Lost me now I haven't got the slightest Clue what you're talking about It's not real in my market and and what Worries me more is what could I bring to You I'm out thank you very much Andy's impressive run comes to an end as Hilary duvet fails to spot money-making Potential

Will Deborah meaden find a reason to Invest [Music] Andy How many of this type of car will be in Existence right now right now bike Engine cars there's no way of putting a Number of the bike engine cars that are Actually used on the road uh race series There are probably Four or five hundred serious race cars With bike engines in that I'm aware of But I think it's a market that will Increase I I I've got to say you've come Across really well but the trouble is You haven't been able to show a clear Way To make money with this car so I'm sorry For that reason I'm out thank you for Your time appreciate it Andy You sound great you're having a ball You're looking for a partner not just a Financial partner You're looking for a pretty Hands-On Partner I'd have to be spending more time with You and your business than that it's Been my own business So I'm going to wish you the best of Luck I'm out [Music] Two more dragons walk away from the deal But as Peter Jones spotted an

Opportunity where his Rivals have not Andy Well I love your honesty and you've been Very very straight in terms of How you've got to this stage But it's a pretty limited market so You're going to need a lot of time or at Least A lot of effort in turning what you've Currently got and making it into a Business And I think that makes it You know unfortunately for you a very Difficult decision for anybody to invest That's where it kind of falls down Um But it also folds up In terms of I've got some thoughts Of what could be done and I am annoyingly into cars and I I'm not being blinded by it but I have Got some Some ideas So I've decided to make you an offer Thank you All of the money But in return I want 35 of your business Okay A dramatic about turn and Andy's thrown A financial Lifeline but Peter Jones is Demanding three and a half times the Equity originally on offer

With one more Dragon remaining can the Likable entrepreneur negotiate himself a Better deal Andy I'm really surprised that Pete made an Awful without Getting a second and third Year's Turnover in profits So what are they Second year was 300 000 net profit at Sixty thousand yep and year three five Hundred thousand turnover with a net Profit of a hundred thousand So I'm gonna be an offer But I want a higher percentage I'll offer you fifty thousand pound But what fifty percent of the business But You reach your projection over this for Years And I'll reduce that to 25 percent Thank you Sorry I'm a bit Goblin expected to have One off a little over two on the table [Music] I think I'd like to take you offer Peter Thank you very much you're welcome Fantastic Andy has done it the Investment comes at a price but he walks Away with the backing of a passionate And influential dragon on board [Music] Well Andy well done tell me why you took

Peter's offer rather than Duncan's Because Duncan's could have been better If you met all your targets I'd Obviously done some research going in Knew Peter's interest in Motorsport I Think for what we need you need passion And I wanted Peter on board really to Drive the project so office was a bit Tighter but I think he's the man that we Needed in place [Music]

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