Recipe Design EIS

Offer now fully subscribed (7 May)

Recipe Design EIS is now fully subscribed – no additional applications can be submitted. Due to investor demand, we are discussing the possibility of overfunding with the Company. The outcome of this is not guaranteed. If you are interested, please register below and we'll let you know if further capacity becomes available. Alternatively, you can look at other EIS offers currently open, both EIS funds and single company EIS. 

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Profitable, rapidly growing design consultancy with blue-chip clients ranging from £billion-turnover Swiss pharmaceutical Galderma to Braun and Bang & Olufsen

Bringing new products to market – the right product for the right market at the right time and right price – is risky and many corporates, even large established ones, do not have in-house strategic design capability. As a result, the market for design support appears to be booming – currently estimated at $8.6 billion and growing at 11.6% a year.

To capitalise on this, Recipe Design Limited (“Recipe” or “the Company”) was set up in 2020 to provide strategic design innovation – specifically in the lifestyle/wellness and healthcare/pharmaceutical consumer sectors. 

The award-winning company’s global clients range from $3 billion-turnover Swiss pharmaceutical Galderma, LSE-listed Circassia and £26 billion-turnover British American Tobacco, to Sanofi, Roche, Braun, Kenwood and Bang & Olufsen.

Recipe has been profitable since inception, the proceeds from its trading activities funding its progress to date (£1.4 million revenue in 2020, £1.8 million forecast in 2021 – not guaranteed).

The Company has been self-funded to date – no founder or investor seed capital has been required. Now to accelerate its growth, Recipe is raising £0.45 million under EIS, in a round led by Wealth Club. The funds are to expand its team to keep up with demand and take on more new projects – the business is otherwise currently having to turn work away. 

Based on the Company’s forecasts, target mid-case return is 5x (44% IRR), high case 6x (IRR 50%) after three to five years (after performance fees but before EIS tax relief) – high risk and not guaranteed. 

Important: The information on this website is for experienced investors. It is not advice nor a research or personal recommendation to invest. If you’re unsure, please seek advice. Investments are for the long term. They are high risk and illiquid and can fall as well as rise in value, so you could get back less than you invest.

The deal at a glance

Type Single company EIS private offer
Stage Scale up
Date started trading 2020
Funding to date Nil
Co-investors (new and existing) N/A
Sector Design consultancy
Fully diluted pre-money valuation £1.9 million
Market size $8.6 billion, growing 11.6% per annum
Business model B2B
Revenue to date £1.4 million, £1.8 million expected in 2021
Revenue model Design consultancy projects with c.50% paid upfront
EBITDA profitability forecast from Already profitable
Forecast revenue in year 3* £2.9 million
Forecast EBITDA in year 3* £0.8 million
Target return in year 5* 5x
Target IRR* 44% IRR
*These are forecast and not guaranteed. Capital is at risk – you could lose the amount you invest.


  • Design consultancy focusing on rapidly growing healthcare and home sectors, with global customers
  • Clear niche and trademarked process
  • Cash-generative from the outset and well placed to continue its profitable growth in our view – not guaranteed
  • £1.4m revenue in 2020, on track to deliver £1.8m in 2021 – not guaranteed
  • Attractive pre-money valuation in our view 
  • Low operational gearing – mix of fixed and variable costs
  • Product design sector growing 11.6% p.a., expected to reach $18.6bn by 2028
  • Experienced management and board, with strong network of potential clients 
  • Target return of 5x in year 3-5 (44% IRR) – not guaranteed
  • Private single company investment with no diversification – high risk
  • Minimum investment £10,175 (5,500 shares at £1.85 per share)

This overview is based on the information available in the Information Memorandum prepared by the Company and additional information provided by the Management upon request. Wealth Club has reviewed the information provided but has not verified or audited it. Please read the offer documents carefully to form your own view and ensure you wholly understand the potential benefits and risks.

Recipe Design EISWhat does Recipe Design do?

Recipe is an award-winning design consultancy focusing on the healthcare and home sectors. 

It was founded in 2020 by CEO Miles Hawley. Miles has 30 years’ experience across a broad range of consumer and healthcare product design – and relationships with some of the world’s biggest brands and healthcare businesses, including Roche, Novartis, Novo Nordisk and Ford.

Miles’ impetus for setting up Recipe was his observation that too many businesses launch products that are simply gap-fillers or imitations of what had gone before. In failing to innovate sympathetically with evolving consumer needs, corporates could stand to suffer significant lost revenue and destabilised market position. 

Recipe provides both strategy and design services, end-to-end from idea to commercialisation: delivering products, branding and packaging design. The Company has trademarked its design methodology: its Meaning Centred Design™ focuses on how technology can be adapted to people – not the other way around. 

Management believes Recipe is the only strategic design agency offering a unique end-to-end service, based on deep knowledge across its chosen sectors.

Watch the video below to see a showreel of projects completed by Recipe in the healthcare sector.

Video produced and published by Recipe Design.

How does the business make money? 

Recipe sells its services B2B. Current customers include healthcare start-ups and a number of blue-chip clients. New customers typically sign up for short initial projects (£25k for a few weeks), before committing to longer-term design and strategy projects (£100k for 3 months+). The Company has started to implement retained consultancy agreements, whereby customers commit to an annual amount of work (typically worth £150k - £250k). 

Recipe has been profitable since inception, and the proceeds from its trading activities have funded the Company and its progress to date. No founder or investor seed capital has been required – this is highly unusual, in our experience.

Covid-19 and Brexit impact

Management believes it is possible some customers may restrict R&D budgets as the impact of the pandemic continues to be felt. However, to date the Company has not experienced any significant impact due to Covid-19, as its customers need to continue releasing new products to market to stay ahead of the competition, and in turn require Recipe’s services for these new products.

Several of the Company’s clients are based overseas within the EU. However, as all work has always been conducted remotely, and projects are not regulated, Management does not expect Brexit to have a significant impact on the business.

EIS private offer

Recipe Design is raising £0.45 million in this funding round under EIS, led by Wealth Club.

The fully diluted pre-money valuation is £1.9 million. Investors will be subscribing for Ordinary Shares (the only class of share) and will invest using a nominee structure provided by Wealth Club Asset Management Limited and Wealth Club Nominees Limited. Please refer to the IM for further details.

Based on the Company's forecasts, Recipe targets a mid-case return of 5x equivalent to an IRR of 44% (high-case 6x / IRR 50%) after three to five years, after performance fees but before EIS tax relief – high risk and not guaranteed.

Recipe obtained Advance Assurance from HMRC in March 2021.

How is the funding going to be used?

Funding in this current round will primarily be deployed towards building a team to drive business development and take on more projects. 

Exit options

Management believes the most likely exit route for Recipe could be through a trade sale to a large design consultancy or large professional services firm – not guaranteed.

Increasing demand from consumers for high-quality healthcare and lifestyle products has created significant interest from trade buyers and large consultancies to acquire small, innovative design consultancies. In 2017 alone, $1.2 billion was spent on acquisitions by large consultancies such as Accenture, Deloitte and McKinsey.


The entire management team has deep industry experience.

Founder and CEO Miles Hawley leads the executive team. Miles has 30 years’ experience in the design industry, with long-standing relationships with some of the world’s largest brands and healthcare businesses – including Ford, Braun, Novartis, Roche and Novo Nordisk. Before Recipe, Miles was Chief Design Officer of award-winning design agency Precipice Design.

COO Simon Browning has worked in the design industry for the past 25 years, with 8 years as Studio Director at multi-billion-dollar US manufacturing business Kohler. Simon is an award-winning designer and has worked with clients including Kohler, Unilever, LG, O2 and SC Johnson.

CSO Sarah Sanders is an industrial designer with over 15 years’ experience delivering R&D projects across the healthcare, home and wellness sectors.

The Company currently employs 12 people and has access to skilled contract staff when required. 

Board of directors

Non-executive Chairman Douglas Lloyd is a former investment banker turned entrepreneur. Douglas is currently CEO and co-founder of Azoomee, a children’s app providing games, videos, messaging and learning content, now accessed by 60 million families worldwide. Azoomee has been backed by Wealth Club investors through a series of EIS funding rounds. Douglas formerly grew and sold media company VB Research to Centaur Media in 2011. Douglas works closely with the management team advising on strategy, budgets, international expansion and key contracts.


The Company is currently profitable and had brought forward profits £0.1 million as at December 2020. 

In 2020, Recipe generated sales of £1.4 million and Management has confirmed the Company is currently on track to deliver its FY21 sales target of £1.8 million, forecast to grow to £2.9 by 2023 – not guaranteed.

Risks – important 

This, like all investments available through Wealth Club, is only for experienced investors happy to make their own investment decisions without advice.

This investment is high risk so should only form part of a balanced portfolio and you should not invest money you cannot afford to lose. They also tend to be illiquid and hard to sell and value.

Before you invest, please carefully read the full investment pack – including the PPM which contains further details on the considerable risks, alongside the Wealth Club Risks and Commitments.

This is a single company offer with no diversification. It involves investing in an early-stage business, which is by nature high risk and prone to failure. You could lose the amount you invest.

This funding round is conditional on a minimum of £250k being raised. If this funding is not raised, funds would be returned to investors. 

Wealth Club does not take a seat on the board so cannot influence the business the same way as is usually the case with institutional investors taking a full board position. However, as Wealth Club Nominees will be the only external investor, a new set of Articles will be adopted with some typical shareholder protections and reserved matters in place. Please refer to the new draft Articles of Association which can be found in the IM.

The value of tax benefits depends on circumstances and tax rules can change. 

An exit could take longer than the three-year minimum holding period.

Structure and fees

Investors will pay no direct initial or ongoing charges.

The Company will pay a fee of 6% of the funds raised to Wealth Club Limited for arranging the offer, which it has the option to re-invest via a warrant.

Wealth Club is entitled to a performance fee of 10% deducted from net proceeds, on returns on exit over 2x (before tax relief).

Wealth Club investors will invest using a nominee structure. This service is provided by Wealth Club’s subsidiary companies Wealth Club Asset Management Limited (authorised and regulated by the FCA) and Wealth Club Nominees Limited and is governed by the Terms and Conditions of the Wealth Club Services. The Schedule of Charges details the fees paid by investors.

Wealth Club Nominees Ltd will be completing the share subscription documentation on investors' behalf.

Wealth Club also charges the Company annual monitoring fees to prepare detailed trading updates for investors.

Our view

Leveraging the connections of its experienced management team and its standout process and solution, Recipe has achieved sales of £1.4 million from global customers in its first year of trading. The Company has been entirely funded by its profitable trading activities and, given its traction, looks well positioned to continue its growth.

In our view, the Company’s three- to five-year growth plan looks credible and achievable on a relatively small amount of capital. If the Company can carry on doing more of the same, and strengthen its market position, we think it could become an attractive niche target for one of the larger consultancy firms – bear in mind, all this is not guaranteed. 

We consider Recipe provides an opportunity to invest in a profitable business that could potentially be closer to an exit than other early-stage businesses with the benefits of EIS tax relief – however, as always, experienced investors should form their own view. 

Wealth Club aims to make it easier for experienced investors to find information on – and apply for – tax-efficient investments. You should base your investment decision on the provider's documents and ensure you have read and fully understand them before investing. This review is a marketing communication. It is not advice or a personal or research recommendation to buy the investment mentioned. It does not satisfy legal requirements promoting investment research independence and is thus not subject to prohibitions on dealing ahead of its dissemination.

The details

Single company
Target return
Funds raised / sought
£450,000 / £450,000
Minimum investment
Last updated: 4 May 2021

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