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Charge My Street

Financial performance

Charge My Street is offering up to 130,000 Community Shares in the Society, each with a nominal value of £1. These shares will have an initial target interest rate of 2% p.a. from Year 3, rising to 5% p.a. from Year 5. There is a non withdrawal period of 3 years due to the required holding period for SEIS eligibility and the share withdrawal notice period is 3 months.

Business Model

Projected income is based on the assumptions which have been taken from existing Charge My Street usage data.  Use of chargepoints is based on the current usage in the past 12 months of the Charge my Street chargepoints in Lancaster and Cumbria. The revenues are based on actual subscriber numbers and visitor usage. For urban chargepoints this is three subscribers on the light user package and two on the medium user package. For rural, this is one on light and one on medium. Both have a guest charging value of ~£5 per month, calculated from the previous guest usage. It is anticipated that 50% of chargepoints will be in urban areas and 50% in rural areas.  It is also assumed that 20 chargepoints installed per quarter from Q1 2020 to Q1 2021.

Charge My Street generates revenue through the sale of power at 35 p/kWh to visitors (non-members) and through member subscriptions at 2 tariffs: at £20 per month (up to 86kWh then 23p/kWh) or £30 per month (up to 136kWh then 22p/kWh).

Historic financial performance

Charge My Street's first set of accounts were for the period January 2018 to 30 September 2019. They show:
• Turnover £10,160, cost of sales, £1,499, other expenses £23,345. Other income was £17 in interest and £22,597 in grants, leading to a surplus of £7,930.
• Net assets of £26,933 and share capital of £19,003.
The accounts can downloaded from www.chargemystreet.co.uk/about.

Investment

The Charge My Street element of the capital costs for the chargepoints to be installed in the SOSCI project will be met by grant funding of £335,000 from Innovate UK to Charge My Street. This grant will be paid quarterly in arrears. Funds raised from a share offer are needed to pay for the capital costs of charge points before the grant money is received. Once all the SOSCI project grants have been received, funds from the share offer will be used by Charge My Street to install further charge points. The aim will be to work with local authorities, with Charge My Street using funds raised from the share offer to match grants available to local authorities, such as OLEV On Street Charging

The target for the share offer is £130,000. This would bring the total share capital raised by Charge My Street to just under the £150,000 limit for the Seed Enterprise Investment Scheme (SEIS), which gives tax-paying investors tax relief of up to 50%. The shares issued following Charge My Street’s first share offer in 2018 were eligible for SEIS.

The £130,000 to be raised in the share offer will provide cashflow support for the 100% grant for the installation of 100 chargepoints in the SOSCI project. At the end of the SOSCI project, the £130K will be split between working capital of £30K, to support the running costs of the new chargepoints, and part funding the installation of new chargepoints. It is hoped that Charge My Street can work with Local Authority partners to obtain OLEV funds and install 40 chargepoints as part of the On-Street Charging programme. £100K would support 40 chargepoints at £10K / chargepoint with Charge My Street contributing 25% funding. This is not without risks – Local Authorities will procure on the open market or through closed frameworks which means that bids may go to other chargepoint providers. If Local Authority support cannot be obtained, the £100,000 of capital from the share offer will be invested in ten to 11 more chargepoints, or more if match grant funding can be obtained from Innovate UK or OLEV.


Forecast financial performance

The table below shows the historic and forecast Profit and Loss account for Charge My Street.

Revenues

  • Charge My Street forecast that charge points would generate revenues of approximately £12K in 2020, rising to £105K in 2021, £123K in 2022 and £135K in year 2023. Associated electricity and management costs will be approximately £9K in 2020, £139K in year 2021, £116K in 2022 and 2023. See appendix 3 for more details.
  • Charge My Street sells power at 35 p/kWh to visitors and subscriptions at £20 per month (up to 86kWh then 23p/kWh) or £30 per month (up to 136kWh then 22p/kWh).
  • Charges for similar services are:
    • char.gy6 (£38.99 per month and 19.5 p/kWh)
    • Ubitricity (£399 for a cable then £7.99 per month and 16.2 p/kWh with a 29p plug in fee)
    • Vattenfall InCharge 30 p/kWh
  • Use of chargepoints is based on the current usage in the past 12 months of the Charge my Street chargepoints in Lancaster and Cumbria. The revenues are based on actual subscriber numbers and visitor usage. For urban chargepoints this is three subscribers on the light user package and two on the medium user package. For rural, this is one on light and one on medium. Both have a guest charging value of ~£5 per month, calculated from the previous guest usage. It is anticipated that 50% of chargepoints will be in urban areas and 50% in rural areas.
  • Grants are shown in the sales line of the profit and loss forecast
  • Projected increase in usage in 2021 and 2022 is 20% year on year. This is lower than Society of Motor Manufacturers’ (SMMT) increase in Battery EVs & Plug in Hybrid EVs:7 After 2022 we have projected a 10% increase in revenue year on year.

Costs

Operating 110 chargepoints, the revenues for the organisation are £123K with fixed costs approximately £116K per year by 2022. Overheads include insurance, staff, accounting and maintenance contracts. Cost of sales consist mainly of the cost of electricity. This assumes that the work of managing the society is carried out by staff and contractors with the existing team.

Should the revenues allow and the workload increase in the future, then the society would pay more staff to manage the organisation and operation of more chargepoints. Conversely, if revenues are lower, the staffing would be reduced to cover core activities.

The other operating costs are fixed per chargepoint – electricity standing charges £112 / year, maintenance £100 / year and monthly data connection fees £38 / year. Insurance, website and marketing costs are also taken into account.

Cash flow summary

 The table below shows the cash flow summary for Charge My Street for the period 2019 - 2024.

Balance sheet

The table below shows the historic and forecast Balance Sheet for Charge My Street.

 

Tables presented on this page are taken from Charge My Street's Business Plan, which can be downloaded from the At a Glance tab of this profile.  Larger versions of these tables are available to view within the document.

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