"Are You Calling Me Fraudulent?!” | Dragons’ Den

[Music] hello I'm Peter Matheson chief executive of Caledonia Matheson Airways and I'm here seeking investment of a hundred and fifty thousand pounds in return for a 15% stake of my company a new aviation business specializing in chartered and fibia ser craft to trade us Highland seedlings we have worked for the past two years setting up this unique charter seaplane service to cover all of Scotland this is the modern way to travel in style in comfort an exciting and fashionable alternative to experience Scotland's wild and majestic beauty the company's customer base would include hotels marinas distilleries and estates the lucrative executive market corporate and special events to named a spot a few the seaplanes ability to operate from both land and water integrated with the vehicle and boat backup service means that we can offer flights to from virtually any location we have purchased our own aircraft for training and promotion we intend using the Cessna Caravan amphibious aircraft world renowned for their safety reliability and comfort this is a bold and innovative but misses proposition daring to be different thank you for listening and I look forward to answering your questions thank you Peter Matheson is offering 15% equity in his Highland seaplane company for one hundred and fifty thousand pounds Duncan Bannatyne has been listening intently and is keen to know more yeah what do you intend to charge the customers on this airplane we will charge two thousand pounds per hour for the flight and obviously the more passengers you have the less it costs and have you purchased a nearby we have actually bought our own aircraft not one of these but it is an amphibious aircraft people to a mall aircraft it's an American aircraft it's not a session alone it's not a Cessna the reason why we bought that that this stage because we have to prove to the Civil Aviation Authority that we are credible and we have to obviously conduct the tests so that we can attain our air operator's certificate so the first plane you're gonna porches to use commercially is a Cessna we intend buying to echo buy - absolutely how are you gonna pay for them well I have organized and financed to purchase these already how much is it plane 1.2 million each so you're borrowing 2.4 million absolutely startup Airlines like Peters are notoriously risky investments incurring 2.4 million pounds of debt before a single journey is sold means massive loan repayment will erode future profits [Music] Debra Medan wants to find out when an investor would see any return charging 2000 pound and Al mm-hmm how do we make our money we have worked out a strategy to give us maximum sorry leading to the market that gives us a chance to be successful we want to start but with the minimum of income to give us a chance we have started off with having it paid off listen for about a minute now I haven't heard a number how many hours are you going to fly a day how quickly do we get a return on the investment one one and a quarter hours per day for the first year per plane operative cost per hour we charge two thousand pounds with a built in profit operating cost per hour 1,000 pounds thank you okay when will we actually get into profit to actually only actually paid for that seaplane we were to actually pay for the sea planes until year five did you you mentioned it's got an aircraft already we have bought our own aircraft so what's on the balance sheet of the business does it own that aircraft orders hell no we own that as directors it's not the company has not bought it because we don't have the capital in the company device so the company doesn't have what assets does it have - has it have any cash nope so the company has nothing we have the everything sorry sorry but what you've got is this concept and the plan to buy two aeroplanes yes and you're valuing it at a million pounds three point six billion pound project that we have to obviously raise I think I can dream up a project which is a five million pound touch it doesn't mean it has value the ideal I call this decision until you've at now I'm sorry it's not like business because it has no sales it has nothing unique but it's just unique it doesn't have any assets what does it have the only what does it have it sure don't which apparently I thought it did own which was this aeroplane Newport mm-hmm you haven't had the confidence to put it in the company presumably because you want to keep it out just in case no no the company doesn't have the money to purchase the exactly Peter I just want about you to tell me why is this company worth nearly 1 million pounds was worth half that why is it worth quarter of that I have put 300 thousand powers into this business thus far quickly what we've done with the three hundred thousand pounds okay we bought the aircraft with you said you burned into the company so I really didn't buy the aircraft you bought the aircraft we used to loan it the company am I not if the company owns the aircraft then you spent this 200 thousand pounds on the aircraft through the company if you spent it separate then a company has as Richard pointed out no value NOAA says nothing nada let me just tell you where I am I said firstly if you had confidence in your business and the three hundred thousand pounds you've invested you would have put it in this business before you came and offered it to us to ask me to invest a hundred fifty thousand pounds in nothing which is what you're asking me to do without your neck on the line has really really alienated me and actually hacked me off because you spent three hundred thousand pounds on another business that owns the plane and you're trying to get a new business set up with my money going in well first I take issues you think are you I think you're calling me fraudulent I'm not no I'm not calling you fraud ylim what I'm saying is what I'm saying is you've misled me by making me think that the three hundred thousand pounds which you have lost which you said I've put three hundred thousand pounds into this business I quote we you haven't put three hundred thousand pounds into this business you put three hundred thousand pounds into another business that owns a plane that actually the company that you're trying to ask me for money uses because of that I'm out emotions are running high in the den Peter's been torn apart by Peter Jones who's the first dragon out Deborah Medan is ready to declare her position I couldn't possibly invest in somebody who does not understand the difference between their own personal money and the company money because presumably that way of behavior is going to go on into the future that would worry the living daylights out of me so you made it really really simple when you don't understand who owns that plane whether it's in the company or outside of the company so I'm sorry you're completely uninvested all and I'm out listen you should go home forget this whole idea you can't tell the difference between your money the company's money your house the company's house your plane the company's plane you really are totally under ton investable I'm out Peters hopes for a hundred and fifty thousand pounds of investments are fading fast only Richard Farley and Duncan Bannatyne stand between him and expulsion from the den Peter I've got to echo the sentiments that the other dragons have expressed even if we manage to get over the problem of who owns the plane it's only a concept then the capital requirement is very high you're talk about two and a half million just to find out I don't know why you're doing two planes I don't know why you just find out with one plane and go step by step but I don't want to go there it doesn't seem to stack up but thank you thank you for listening thank you yeah I was I was quite excited when I first saw your board when it went when you came in but after listening to you it's quite clear this is not a business I could investor so I'm not going to invest so I'm out and I'm the last one to declare myself out particularly in a turbulent start in the den Peter has felt the full force of the dragons wrath and he leaves without his hundred and fifty thousand pound investment am I the only one he wrote in my notes that company owns an airplane at the stiffly said their apps they've got a plane I'm leaving at the end he's still I'm not sure he still understands no I have to say though I don't believe he tried to deceive no I do think he got a little bit amused yeah Peter you must be pretty shaken up over that how that went I'm absolutely fierce how dare they speak to me like that into the company they have made little money they can treat people like idiots they can accuse people of lying they can accuse people have been stupid I am none of those and I will not take it from them in my view they are out of order I don't think they really thought you were deceitful but do you understand at the point that it all fell apart on that you hadn't made clear that the plane wasn't in the company and you said you'd put three hundred thousand pounds into the company but you hadn't because the plane wasn't owned by the company we have purchased our own aircraft I'm spending the money for the benefit of the business right do I have to put age but here's this bank account to then spend it or just get on and spend it for the benefit of the company in my view is the same money being used for the same purpose okay [Music] you [Music] you

Channel: Dragons' Den

Views: 1,421,313

Rating: 4.8302875 out of 5

Keywords: dragons den, dragons den uk, evan davis, deborah meaden, peter jones, touker suleyman, tej lalvani, business pitching, entrepreneur, game show, shark tank, dragons, den, best, bits, new, worst, pitches, funniest, moments, most, shocking, ideas, products, businesses, dragons den funny, dragons den 2018, dragons den season 16, dragons den best pitch, peter jones dragons den

Id: HbRy-KYzMFw

Length: 10min 27sec (627 seconds)

Published: Fri Aug 23 2019