Summary of the meeting held on July 14th 2017
Investors Meeting – Friday 14th July 2017.
(Attendees – Approx 55 existing and potential investors)
A presentation was delivered by Ross Ward covering the following areas:-
- Project Validation and Professional support
The Society has received validation and professional support from the following professional bodies:-
- Cooperative and Mutual Solutions LTD – Professional advisors to cooperatives and community benefit societies.
- The Community Shares Standard Mark: awarded to offers that meet national standards of good practice.
- The Plunkett Foundation: Professional advice and support to community enterprises, Financial Bursary, Social enterprise recognition
- The Financial Conduct Authority – Formal Registration of model rules as a Community Benefit Society Ltd ( Reg No 7506)
- The Big Society Capital: an independent financial institution with a social mission, set up to help grow social investment in the UK
- HMRC: Approval and statement of Assurance for investors to claim Social Investment Tax Relief (SITR) of up to 30%.
- “More than a Pub” and The Power to Change: Community Pub Business Support programme offers a comprehensive package of business development support, advice and loan and grant funding to community groups to help establish community-owned pubs that can clearly demonstrate how they will bring significant social, economic and environmental benefits to their communities
- CAMRA: Campaign for Real Ale
- Community Support
- We currently have 120+ investors on Crowd Funder
- 10+ supporters have also pledged via cheques
- Total community shares of £88,000 plus the £100K Max BSC Match Funding ( conditional)
- A number of investors from outside of the community.
- 12 Steering Group Volunteers
- Web designer – Volunteer local resident.
- Update on Other Community Owned Pubs within the UK
There are now over 50 community owned pubs using the same business model as we are proposing to use, a further three pubs have successfully opened within the past 2 weeks. No community owned pub has failed since they first opened back in 2002. People from the community invest and rates of return average 3%.
Most have raised majority of their finance through a community share offer. These are pubs which are owned by the community, shaped by the community for the community on the basis of one member, one vote. Your ideas & suggestions count. All are still trading successfully today.
- Financial Update.
The pub was independently valued at £245,000 back in March 2017.
- SHARE OFFER – We currently have £88,000 in shares which will be match funded by the Big Society Capital of to £100,000 only if we reach our £100K target.
- GRANTS – We have been awarded a £50,000 (conditional) grant via the Plunkett Foundation “More than a Pub” scheme. This is a non-repayable grant to improve social outcomes within the community based upon our vision, our social impact matrix and our business plan.
- KEY FUND LOAN – We have applied for a £50,000 loan via the Key Fund. We hope to have a decision on our application by the end of July 2017.
- COMMERCIAL LOAN – We intend to apply for a commercial bank loan to support our finances if there are insufficient shares, but only if we raise a minimum of £200K in shares.
- VAT – We will need to pay VAT on the purchase of the property which will be obtained via a bridging loan. This VAT is reclaimable within the first 3 months of trading.
- Car Park
A huge investment from a number of local residents from The Villas has enabled us to increase our match funding by £20,000, therefore an agreement in principle by the Society Steering Group has been made to donate a small portion of the car park to the residents of the Villas if we are successful in purchasing the pub. A solicitor will be appointed to ensure that a legal agreement is drawn up in terms of ownership, access rights and maintenance, prior to any financial transactions taking place.
- Project Dependencies
In order for the project to be successful there are a number of dependencies:-
- Our Crowd Funder Shares MUST total a minimum of £100K by 1st August 2017 otherwise we cannot claim the BSC match funding and draw down the shares
- The Key Fund Loan (£50K) being approved
- Plunkett Grant awarded (£50K) . This has already been approved subject to the Key Fund loan being awarded.
- The Vendor accepting our offer
- Commercial bank Loan – this depends upon the total number of shares. The more shares we have the less likelihood of needing a commercial bank loan.
- The next steps.
The project will fail unless we reach £100K in shares before 1st August 2017. We are currently approx. £15K short.
Potential investors were reminded that the benefits of pledging on line via the Crowd Funder Website mean that we will receive match funding for every pound that you invest ( IE £250 pledge + £250 BSC = £500, £1K pledge + £1K BSC = £2K). We cannot claim match funding if pledges are made via cheques
Investors and potential investors were reminded that all pledges are held until an Offer has been accepted by the vendor.
Further grants and loans will continue to be sought
We aim to make a formal offer to the vendor in August 2017
If the offer Is accepted, all investors will be notified before any pledges are transferred from their bank accounts
If our offer is offer declined – all Investors will be notified
Regular updates will be given via our Website, Facebook, Crowd Funder and Personal email address.