COMMUNITY SHARE OFFER

Transcription

1 COMMUNITY SHARE OFFER OPENING DATE: SATURDAY 13TH JULY 2013 CLOSING DATE: SATURDAY 28TH SEPTEMBER 2013 The Anglers Rest Public House in Bamford is for sale. The community now has the opportunity to buy it and create a community owned asset in the heart of the village to incorporate the pub, the post office, a café, accommodation and a village car park. This will secure the sustainability of the business for the future and will create a focal point for village life, to regenerate the village economy and our sense of community. BY BUYING SHARES YOU CAN HELP SECURE THE FUTURE OF VILLAGE LIFE IN BAMFORD. If you are considering buying shares it is important that you read the whole document. The Anglers Rest Community Hub is the trading name of the Bamford Community Society Ltd, a Community Benefit Society incorporated under the Industrial & Provident Societies Act 1965 Registered with the Financial Conduct Authority. Registered no: 31710R Due care has been taken in preparing this document which has been overseen and approved by the directors who can vouch that the information it contains is in accordance with the facts and that there are no omissions likely to affect its import.

2 Bamford in 1917 Photo: magpiecards.co.uk SHARE IN THE ANGLERS REST COMMUNITY HUB THE BACK STORY The village of Bamford lies at the heart of the most visited area of the Peak District National Park with good road and rail links between Sheffield and Manchester. At one time Bamford boasted a number of public houses and businesses and was a thriving community. In recent times, however, as in many rural areas, businesses have closed their doors and those that remain have had to look to new ways to survive and prosper. Community ownership is one such way. YOU ARE NOW INVITED TO BUY INTO THE ANGLERS REST COMMUNITY HUB. BY SO DOING YOU WILL HELP TO SAFEGUARD OUR VILLAGE AMENITIES AND DEVELOP ACTIVITIES AND SERVICES FOR THE BENEFIT OF OUR COMMUNITY. WHAT IS A COMMUNITY SHARE OFFER? It provides the opportunity for local people and businesses to buy into the community where the motivation and payback is more social than financial. It helps to ensure a truly local enterprise, accountable to the community whilst serving and benefitting it. The Bamford Community Society has been set up to purchase the Anglers Rest. The shares you buy will make you a Member of the society, with an equal vote regardless of your shareholding. Your involvement thereafter can be as much or as little as you wish. You can vote at Annual General Meetings, stand for election to the Board of Directors, inspect the share register of the society, volunteer skills for the refurbishment or just give the community hub your custom. We would, however, like to encourage as many members of the community as possible to volunteer their time now and in the future to make this a truly community venture.

3 WHAT IS IN IT FOR ME? This is not just about buying a pub, it is about helping to sustain a community. There is limited financial reward this is about investing in the future of the community and ensuring the Anglers Rest Community Hub is run for the good of the village, for us now and for future generations. At a time when many local businesses are having to close their doors, the Community Hub offers a once in a generation chance to safeguard our local services by diversifying the Anglers Rest to house the post office and café along with the pub and a village car park. The post office and the café will be housed under the same roof, under the same management but each as distinct areas within the building. A COMMUNITY ASSET We want to buy the Anglers Rest to protect it for the future and for it to become a community asset for everyone to enjoy in the long term. It is only truly a community asset if it can generate a profit that than can be reinvested into activities that benefit the community. We want to run it as an enterprise for the good of the area. THE WISH LIST The 3 public meetings, 3 open evenings and the afternoon café event, together with the information gathered from the Village Plan, painted a consistent picture of the views of Bamford residents. The wish was for a local pub that was friendly and welcoming to all, that provided real ale, good food with regular events and activities. There was high demand for the post office to remain in the centre of the village. More village car parking was highlighted, as was the desire for a central café to serve the local need TOGETHER WE CAN MAKE THE ANGLERS REST A HUB AT THE HEART AND SOUL OF THE COMMUNITY. and also for those visiting or passing through the village. We have taken this as the mandate from the village and are confident that the Community Hub could fulfil this wish list. HOW MUCH MONEY DO WE NEED TO RAISE? A minimum target has been set of 180,000 for this share offer to be deemed successful. The maximum target sum to be raised by this share offer is 320,000. We cannot accept any further share purchases once the maximum sum is reached and the share offer would close at that point. We have an agreement in principle for a loan facility of up to 140,000 to bridge the gap between the value of the share capital raised and the total funds needed to complete the purchase. The bank loan will be repaid and the interest serviced from the income revenue of the business. Clearly, the greater the sum raised through shares, then the smaller the sum required as a bank loan, and the lower the interest payments. HOW DO I BUY SHARES? You need to be over 16 years to invest. Shares will be sold at 1 each with a minimum investment of 250. You can buy in batches of 250 shares up to a legal maximum of 20,000. Please fill in the application form at the back of the prospectus and follow the instructions. At the end of the offer period you will be issued with a share certificate. HOW DOES THE SHARE ISSUE WORK AND WHAT GUARANTEES DO I HAVE WHEN BUYING SHARES? This is a long-term investment for the benefit of the community. Shares cannot go up in value. Therefore if you wish to withdraw shares at any point they can only be withdrawn at face value. In the event of having to wind up the Society, should the value of the Society s assets exceed the value of the share capital, the shareholders will still only get back their original investment. Any excess value would be transferred to another community organisation having similar community benefit aims. This is known as an asset lock and is to prevent private gain if the organisation dissolves. However as the shares are issued by a corporate body, shareholders have no liability beyond the value of the shares they buy. When the business is in profit, the Society aims to pay interest on the shares at a rate to be recommended by the directors and voted on at the AGM. Interest is paid gross and is taxable. You will be responsible for declaring this income to HMRC. Any profits beyond this will be retained within the Community Hub and used to further its activities. The Society has advance approval from HMRC for Enterprise Investment Scheme tax relief. The scheme provides 30% tax relief to investors. This means that 30% of the sum invested could be offset against personal tax liabilities in the year the society starts trading. To qualify, the shares must be held by an investor for a minimum of 3 years.

4 THIS IS NOT ABOUT BUYING A PUB. IT S ABOUT HELPING TO SUSTAIN A COMMUNITY. CAN I SELL MY SHARES? Shares cannot be sold or transferred to another person but can be withdrawn after an initial period of three years. This time period is to ensure the business an initial period of financial stability. After this time you can get your money back, with 3 months notice, if you want to cash-in your shares. Where there are extenuating circumstances the directors have the discretion to release funds earlier where feasible. The directors have the right to refuse or suspend withdrawals. WHAT HAPPENS IF WE DON T RAISE ENOUGH MONEY? If the share investments do not reach the minimum share target by the end of the share offer period, the directors have two options: If the total raised is 75% or more than the minimum target sum, the period of the share offer could be extended. In this event existing investors would have the option to withdraw their investment. If less than 75% of the minimum sum is raised, or the directors opt not to extend the offer period, then all of the share investment money Illustration by David Treacher would be refunded in its entirety within one month of the closure date. However the directors may ask for a voluntary contribution to help cover the costs incurred so far. The share investment money will be held in a suspense account until the closure of the share offer period. WHAT ARE MY RISKS IF THE PURCHASE GOES AHEAD? The Society wants to be fully open and transparent to its potential investors about the risks as well as the benefits of investment in community shares. Cooperatives UK recommend that it is good practice to make the following points explicit: As a member and shareholder of Bamford Community Society you will own the society and the Anglers Rest pub. If the Society is unable to meet its debts and other liabilities, you could, in principle, lose some or all of your investment held in shares. Financial Services Compensation Scheme, which applies to bank accounts, does not apply to your share account. This share

5 Photos by Ben MacIntyre offer is exempt from regulation and therefore does not require authorisation from the Financial Conduct Authority (formerly the FSA). Your investment in your share account is withdrawable without penalty at the discretion of the Board under the Society s rules. Your investment in your share account receives interest but does not enjoy any capital growth. It is primarily for the purpose of supporting your society rather than making an investment. As a society, the maximum return offered to investors by way of income will always be limited. The Financial Ombudsman Service does not apply to your share account or your relationship with the Society, but any dispute may be the subject of arbitration as set out in the Society rules. WILL IT WORK FINANCIALLY? The principal risk to the Bamford Community Society investor is that the Anglers Rest Community Hub fails to be successful as a going concern. In view of its chequered history in recent years, the Society recognises that this is an understandable concern. We are under no illusion as to the challenges and the inherent risks involved. The mitigation of this risk lies in the fact that the business plan is built on diversifying the business into a multifunctional community hub, bringing together pub, post office, café and accommodation into a single entity, in effect, several income streams under one roof. ULTIMATELY THOUGH, ITS SUCCESS WILL BE DOWN TO US AS A COMMUNITY. For more detail about our plans and financial forecast go to the business plan on the website: OUR TRACK RECORD The Bamford Community Society was established in August 2012 with the sole objective of creating a community hub for the village by purchasing the Anglers Rest, and our enthusiasm remains undimmed. However, we recognise that enthusiasm alone is not sufficient and that the Society does not have a track record of running such businesses. Therefore the Society will appoint an experienced manager to run the business on its behalf. The manager will be responsible for the day-to-day running of the business, overseen by the directors who will set the overall direction. Photo by John Beatty

6 WHO ARE WE? The interim directors of Bamford Community Society are: David Treacher Dave has been a Bamford resident for twenty years. During this time he has owned and successfully run Pioneer House as a guest house with his wife, Janet. Prior to this Dave worked for twenty three years as an engineering manager with the Post Office. On the day that we moved into Bamford we celebrated with a drink in The Anglers Rest which was then a thriving part of Bamford s village life. We would like to see this venerable old pub restored as the centre of the community for the enjoyment of everyone. Rebecca McIntyre Rebecca has worked in project planning, development and fundraising for community and heritage projects for nearly 15 years. She has a proven track record for securing community grants for similar ventures to the Anglers Rest Community Hub. There are loads of great examples of communities successfully buying their local pub and, in doing so, protecting vital village services. As someone that often works from home I am as interested in the range of daytime facilities that could be offered from the Anglers, as well as keeping a welcoming and friendly pub within easy walking distance. Ian Wingfield Ian has lived in Bamford for 35 years and has contributed to local affairs in many ways: PTAs, HVC parent governor, member on High Peak Council, and chair of Moore Hall where he oversaw the recent refurbishment. Ian worked as a chartered civil and structural engineer and was a chief officer with South Yorkshire County Council from He continued to work for a further 20 years as a self employed consulting engineer. I am passionate about the cooperative principle, seeing the Anglers Rest project with a post office at its heart as crucial to sustaining social cohesion in Bamford. Our interim directors will stand down at the first general meeting following the distribution of shares and the Society s members will elect new directors. INTERIM MANAGER The directors have appointed Paul Towers, who is well known to the village as our local postmaster, to be our interim manager for the first 6 months after which period the post will be advertised. Paul will be able to apply for the permanent post. Paul has substantial experience of pub management and catering in addition to his post office experience and will be invaluable in the transition of the Anglers Rest into a community hub. Paul will be assisted by a bar manager and chef. AND THE REST The rest of the steering group are an enthusiastic group of local residents who volunteered at the first public meeting in Feb The group has evolved and currently comprises: David Allwood, Mark Bawden, Jan Beatty, Jon Bury, Simon Hill, David King, Rebecca MacIntyre, Liz Marshall, Sally and John Soady, Janet and David Treacher, Richard Tuffrey and Muriel and Ian Wingfield. FOR MORE INFORMATION PLEASE VISIT If you have any questions, you can also call John Soady on , David Allwood on or Liz Marshall on For more information about community shares please go to

7 Cut along dotted line. APPLICATION FOR SHARES Each share costs 1. Minimum investment is 250. You can buy in batches of 250. Maximum investment is 20,000. Shareholders must be aged 16 or over. Contact Details Full Name (including middle name) : Address : Date of Birth : Telephone : Please write clearly in BLOCK CAPITALS Post Code : I, the undersigned, wish to buy the following value of shares : (please tick a box) ,000 1,500 OTHER 2,000 5,000 10,000 20,000 I agree to the terms of this share offer as set out in the prospectus and to the rules of the Society, (please refer to the website or request a copy) Signed : Date : Preferred Method of Payment I have enclosed a CHEQUE Please make cheques payable to The Bamford Community Society Ltd. I have paid by BANK TRANSFER The Cooperative Bank, our Account no: our Sort Code: By applying for membership you are also applying to be a Society member. The directors of the Society reserve the right to reject an application. Acceptance will be notified by issuing a receipt by or post where there is no address. IMPORTANT For the payment reference, please give your initials and surname, for example if you are called John Paul Jones, your reference will be JPJones. PLEASE RETURN THIS FORM TO : Tha Anglers Rest Community Hub, c/o Mrs Janet Treacher, Pioneer House, Station Road, Bamford, Hope Valley S33 0BN

8 FOR MORE INFORMATION PLEASE VISIT If you have any questions, you can also call John Soady on , David Allwood on or Liz Marshall on Thanks to Bamford & Thornhill Parish Council for their support.