Professional Documents
Culture Documents
Investment Readiness CST
Investment Readiness CST
Trading
Hugh Rolo
Head of Assets and Investment
Development Trusts Association
www.dta.org.uk
Chair The Key Fund Yorkshire
www.sykeyfund.org.uk
Delivery Partner Adventure Capital Fund
www.adventurecapitalfund.org.uk
Core Ideas
• Cash is king
• Current Ratio—cash flow
• Dig below the numbers
• Cost control
• Going concern ---trading when insolvent
• Reserves
Accounts and stuff
• Tenure
• Clawback
• Quality of Revenue Streams - Pig on Pork,
multiple risk
Social Returns on
Investment
• Know your neighbourhood and business
baseline statistics
• Quantify the cost of doing nothing
• Methods of Measurement
– Social accounting
– SROI—Prove it
– Change Check
– Tell your story
ABL
Managed workspace
Conference space
Community Facilities
ABL Bradford
ABL
Rent £190,000
Service Charges £250,000 (in and out)
Sessional rental £140,000
Total (Turnover) c£600,000
Borrowing
• Own Bank
• Sector Specialists-Triodos/Unity/CharityBank/SELF/CDFI/
Co-op/Futurebuilders/Adventure Capital Fund/Community
Builders/Department of Health Fund
• Regional Development Funds
Equity
• Share Issues
• Venture capital funds
Share and Bond
Issues
100
80
60
40 No. of cases
20
0
1987 1993 1998 2003 2008
Trade activities
Trade activities of organisations issuing Number of
community shares or bonds since 1999 organisations
Renewable energy 9
Community retail store 8
Community finance 7
Regeneration, land, buildings 5
Transport (heritage railway preservation) 2
Farming 2
Utilities 2
Football 2
Fair trade 1
Other 3
Basic facts and figures
• At least 84 cases of enterprises with more
than £10,000 of community investment
• Total community investment is £298m
• Combined membership over 6 million
• 41 new cases in last 10 years, raising
over £45m from 63,4000 members
• Median amount raised is £135,000
Headingley Development
Trust
• IPS community benefit
society registered 2005
• 790 members: min.
shareholding £5
• Withdrawal notice six
months
• Campaign to raise
capital for enterprise
and arts centre raised
£105,000 in member
share capital
Westmill Wind Farm
Co-operative
• IPS co-operative registered
in 2004
• Raised £4.4m from 2,382
members buying
transferable share capital
through a fully authorised
share launch
• Projected interest on
capital of 5% pa rising to
average of 12% pa over 25
years
• Investors qualified for
Enterprise Investment
Scheme tax relief
• Cost of share offer
£150,000
Contact
• www.atu.org.uk
• www.communityshares.co.uk