Help Me Stop Single Company EIS

The overview information provided on this website is based on the data representations contained in the Information Memorandum and EIS Investor Deck provided by the firm ‘Help Me Stop’.

Kemeny Capital has reviewed but not independently verified or scrutinised it. The information and documentation provided should be reviewed carefully, you should understand the risks involved and be capable of making investment decisions based upon your personal circumstances.

  • Type: Single Company EIS

  • Target Return: 7x

  • Sector: Healthcare

  • Minimum: £10,000

  • Funds Sought: £500k

  • Deadline: 1st March 22

Summary

Help Me Stop Ltd is seeking investment to carry on the trade of establishing and operating a number of drug and alcohol addiction treatment centres, initially in London and the Home Counties, together with an online treatment service and a “Detox” unit.

Highlights

This round, seeking up to £500k for 11% of the business, on pre-money valuation £4m

  • To date £1.465m raised
  • Shares issued at £1.20
  • Use of Funds: Expand Online, Launch App, Open Detox Unit
  • Goal – to build hugely scalable global business
  • Target: 7x investor return in 2024/25, assuming EBITDA multiple of 10 (industry average 9-13), via Trade Sale

About Help Me Stop

Adapting the successful US intensive outpatient model, the Company plans to build on the successful launch of its first two units in London by launching further ‘Dayhab’ treatment centres in the UK which will provide addiction treatment at a fraction of the current cost of residential treatment.

Aiming to deliver the same quality of addiction treatment at a significantly lower price will provide thousands of people previously excluded from access with a solution to alcohol and drug addiction. In addition, in response to the Covid-19 pandemic, the Company launched a complementary online “Digital Dayhab” service in April 2020, which has received an excellent level of response and is growing rapidly.

The Company’s management team has an extensive track record in this sector and has managed traditional rehab centres and large-scale community substance misuse services in the UK as well as built businesses for sale in the healthcare sector. Following the successful launch of both the first unit in West London in September 2019, the central London unit in August 2021 and also its online service in April 2020, the Company is seeking up to £500,000 under the EIS.

This will be used to help expand the business to a detox unit which will be launching late 2021. The Company also plans to open a minimum of a further two units in Spring 2022 with subsequent expansion in London and the South East in 2022-23. Funds will also be used to support the development of the recently launched online service. All Dayhab units are intended to be on or just off the high street, usually sized between 1,500 and 2,000 square feet.

ESG & Impact

Help Me Stop has the potential to help hundreds of thousands of people with drug and alcohol problems find long term recovery and successfully transform their lives.

Help Me Stop supports UN Sustainable Developments Goal 3 (Good Health and Well-Being)

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Business Model

Compared to traditional residential treatment that typically costs between £12,000 and £60,000, Help Me Stop currently provides clients with a similar programme for £3,000 (including VAT) for its face-to-face Dayhab service, and £1,500 (including VAT) for its online service. Both services are offered over a six week period and represent a breakthrough in the addiction recovery market.

Help Me Stop’s treatment model has been developed by the Company using evidenced based 12-Step programmes, Cognitive Behavioural Therapy (“CBT”) treatment, psycho-education, family programmes and input from US intensive outpatient centres that have been established and grown in many major US cities. Success levels for Dayhab in the US (usually referred to there as Intensive Outpatient Programmes) have been shown to be as equally effective as residential treatment (Substance Abuse Intensive Outpatient Programmes – Assessing the Evidence, Denis McCarty et al, 2014).

For example, Twin Town, a company with six units in Los Angeles and Orange County, California, reported continuous abstinence for over 70% of clients nine months after completion of treatment in 2017. This compares to relapse rates within the first year after discharge from residential treatment of between 37% to 56% (Barriers and facilitators to successful transition from long-term residential substance abuse treatment, Manuel et al, 2016). Help Me Stop’s treatment model is designed to offer clients maximum flexibility to shape an intensive recovery programme that will fit in with their circumstances

The Market

NHS Digital has reported that: there were 358,000 admissions to hospital in 2018/19 where the main reason was due to drinking alcohol, 6% higher than 2017/18 and 19% higher than 2008/09. Men and women aged 55 to 64 had the highest proportions of drinking over Govt recommended weekly limits. In 2018/19, 76,000 were treated for problematic drinking alone. 29,000 were treated for non-opiate and alcohol problems. (Statistics on Alcohol, England 2020, February 2020)

Public Health England confirms: “in England, over 10 million people consume alcohol at levels above the UK CMOs’ low-risk drinking guidelines and increase their risk of alcohol-related ill health.” (Alcohol, Applying All Our Health, August 2019) Public Health England also confirms: “Alcohol misuse is the biggest risk factor for death, ill-health and disability among 15-49 year olds in the UK, and the fifth biggest risk factor across all ages.

Alcohol is a causal factor in more than 60 medical conditions, including: mouth, throat, stomach, liver and breast cancers, high blood pressure, cirrhosis of the liver, and depression.” (Local Alcohol Profiles For England, April 2020) Public Health England also states that: “Estimates show that the social and economic costs of alcohol related harm amount to £21.5bn, while harm from illicit drug use costs £10.7bn.

These include costs associated with deaths, the NHS, crime and, in the case of alcohol, lost productivity.” (Alcohol and Drug prevention, treatment and recovery: why invest? February 2018) NHS Digital confirms: There were almost 1.3 million estimated admissions where the primary reason for hospital admission or a secondary diagnosis was linked to alcohol, which is 8% higher than 2017/18 (broad measure). Changes over a longer time period will partly reflect improvements of secondary diagnoses. This represents 7.4% of all hospital admissions.” (NHS Digital, Statistics on Alcohol, England 2020, February 2020)

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Team

Stephen Bradshaw, Chairman

Stephen has been involved in Behavioural Healthcare for the past 35 years. He had his own education company called Farleigh House which was a start-up and the first to be bought by a PE fund. He was invited to join the main board at the Priory Group as a Director and developed over 20 new services for adults and children, these included care pathways through to adult services. He was also MD at Cambian, Exec Chair at Options Group, before founding and running his own group Aurora as CEO. He has recently stepped down from that position after setting up 13 schools and colleges in two years. Help Me Stop is Stephen’s third start up project and highlights his experience and passion in this field.

Tim Smith, CEO

Tim has extensive experience in the marketing, media and finance sectors. He has also served as a trustee on drug and alcohol charities, including the Addiction Recovery Foundation. His early career included working as an editor/ publisher with United Trade Press and marketing with Twentieth Century Fox. He founded the marketing services business Foresight that represented clients such as Walt Disney and Marks & Spencer, and over 10 years grew it into a 300 headcount business with offices across Europe and the Middle East. It was eventually acquired by Primedia. Tim went on to work in the entertainment sector, helping to produce and finance over 60 film and television projects include The King’s Speech and Wolf Hall. Since 2016 his primary focus has been the launch of Help Me Stop.

Martin Sherwood, Non-Executive Director

Martin Sherwood has many years’ experience of small company fundraising and in particular the tax-efficient investment market, specialising in the Hospitality & Leisure Sectors. Martin was until recently chairman of the four British Country Inns companies (now in liquidation) and is chairman of Halcyon Hotels and Resorts plc, which was a major investor in Luxury Family Hotels, which he helped launch 20 years ago. He was founder and head of Tax Efficient Solutions, first at Teather & Greenwood (1997-2004) and subsequently at Smith & Williamson (2004-2010), which he left to found Enterprise Investment Partners, now merged with Kin Capital Ltd. Martin has been closely involved in both Venture Capital Trusts and Enterprise Investment Schemes since their inception, and is a founder director of the EIS Association, the official trade association of the EIS industry. Martin works very closely with a wide range of Hospitality & Leisure entrepreneurs and has a significant network of investors and professional contacts as well as being a serial investor in his own right.

Financial Projections

2022 Forecast (£000’s) 2025 Forecast (£000’s)
Sales 3,591 8,273
Gross Profit 1,663  5,256
EBITDA (364) 3,684

IMPORTANT: The above is a forecast only and is not guaranteed, and investors capital is at risk. These forecasts are provided by Help Me Stop. Please download the Information Memorandum for further details.

Risks

As with all offers found on Kemeny Capital’s website, this offer is exclusively aimed at UK resident persons who are required to self-certify as either a Sophisticated Investor or High Net Worth Individual.

The value of investments may go up as well as down and there is no guarantee of any investment return. Investments in private companies carry significant risks including loss of capital, illiquidity, and no guarantee of regular income from the investment. You should understand the risks involved and be capable of making investment decisions based upon your personal circumstances. Past Performance is not an indicator of future performance.

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Downloads 

Information Memorandum

Key Information Document (KID)