The company started with very modest means which allowed the initial development in its cocoon.
The company now has the necessary means to quickly and solidly gain a foothold in a huge global market. The innovative character of Lseat and the strong protection provided by its patent, which will be extended to all industrialised countries of the world, ensure a bright future for the company.
The financial resources gathered with the collaboration of SPREDS and the €335,000 currently being allocated by the Brussels Region will make it possible to ensure this growth.
The technical collaboration of SONACA, through its reputation for superior quality and references, ensures the seriousness and chances of success of the company and its projects. Hugues Langer, CTO and Technology Senior Officer of SONCA joins the company for 10% of his time.
Thus, the subsidies from INNOVIRIS and the funds sought by SPREDS, will allow SONACA to design an even more innovative seat in terms of comfort for the economy class made possible by the gradual expenditure of the R & D budget of €800,000.
The increasing annual financial results envisaged in the business plan up to 2026 amount to €81M cumulated up to 2026 for the new seats and nearly €94M possible cumulated in 2026.
The projected financial results consist of a business plan up to 2026 for new seats sold for new aircraft leaving the factory to manufacturers, but also to airlines which generally renew their cabin interiors every five years.
These prospects, which astonish the company's managers themselves, are enormous but result from the arithmetic analysis of the size of the markets at the expected competitive selling prices. Air France's order for 24 Lseat seats for its 49 BOEING 777s alone represents a potential sale of more than €7M. The market shares taken into consideration for 2020 are less than 1% and less than 7.6% for the new seat market in 2026. For the retro-fit, they estimate a potential market of 28,6 % in 2026.
The challenge for managers is enormous but is a result of serious and long analysis. Temporary adversities will have little influence on airline management planning for the long term, and the advantages offered by the product create a four-month return on investment.
Detailed business cases are available on request from SPREDS.
Special communication following the current circumstances and the impact of COVID-19:
- A big delay in 2020 sales had already been predicted. Thus, WifiTechnologies has not forecasted any revenue from the sale of new seats and has predicted delays of more than a year in their deliveries.
- WifiTechnologies has forecasted extremely modest sales of retrofit kits with the supply of 684 kits in the year 2020 which would correspond to 24 seats for less than 30 aircraft.
- WifiTechnologies does not expect to fall below such forecasts unless the interruption in air traffic were to continue until October.
- The retrofit kit as well as the new seats are a very modest investment for a pay-back period of less than four months. It is therefore extremely profitable for the airlines, which will need short-term profits as soon as business resumes. For example, EL AL is already planned to negotiate with Lseat in September 2020.
- Over the last few days, a large number of airlines have declared that they're letting go of their A380 fleets (AIR France, BRITISH AIRWAYS p.e.) and large B747 aircrafts (KLM, BRITISH AIRWAYS etc.) to replace them with smaller, more efficient aircrafts, which are precisely those for which the improved comfort of the Lseat is an added value.
Break even year
1 January 2021
TAX SHELTER 45%This business qualifies for the startup tax shelter. If you meet the conditions, 45% of your investment will be reducted from your personal income taxes. Read more…
|Min. total fundraising||€75,000|
|Max. total fundraising||€474,000|
|Post-money valuation min.||€7,075,000|
|Post-money valuation max.||€7,474,000|