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Exchange Bristol

Financial performance

Aside from the warm and fuzzy feeling of being a co-owner, Exchange are planning to pay investors 3% per year from the second year after investment, and to enable people to start withdrawing their community shares investment after 3 years.  Investors can also choose to receive a return at equivalent to 6% in the form of vouchers to spend at Exchange.

The Plan

Exchange have exciting plans for how we use new investment to make the physical venue even better.

They can give the venue a broader appeal by making it a place that is also a café and bar, rather than a gig venue with a café and bar on the side.

They will develop the outside seating area to make the venue more inviting to the many people who pass by in the busy central location. They would also like to alter the internal layout on the ground floor so that there is a separate box office for ticketed events which would allow the bar/café to be always open to the public.

Exchange already have a very good reputation for sound quality and the gig experience at the venue, but this could be improved with better lights, PA, moving the sound booth, changing the stage layout. These measures would help increase revenues by slightly increasing their capacity and enhancing our ability to attract artists who want to play Exchange even when they could sell out a larger but less attractive venue.

Exchange would also like to reduce the carbon footprint of the building and transform the heating and air quality in the venue with a mechanical ventilation and heat recovery unit. These measures along with the installation of water saving toilets will greatly reduce our utility costs and pay back the capital costs within a few years. They also feel it is important to future proof the organisation by updating and improving accessibility, venue safety, sound proofing etc.

Revenues

Community shares always carry risk. But Exchange are confident that revenues will rise thanks to the improvements we have planned, which means that teh expect to have have enough cash to pay interest at year 2 and allow withdrawals at year 3.

In the short term, the quickest win will come from increased sales at the café-bar as they make it more open and attractive to passing trade, including using the area to the side of Exchange. Longer-term, the investment they will be making in the sound and lighting will start to pay off, enabling Exchange to attract more acts and be open more often.

Financial Forecasts

Forecasts

The figures below are based on a scenario of Exchange reaching its £250,000 minimum target. Profit and Loss forecasts are provided in Exchange's share offer document.

Cash Flow

Cash Flow
2018
2019
2020
2021
2022
Operating Profit (Loss) - Before Tax (£4,317) £5,775 £17,201 £23,621 £39,305
Depreciation charge £10,408 £9,992 £9,592 £9,208 £8,840
Share Issue £160,204 £0 £0 £0 £0
BSC Investment £100,000 £0 £0 £0 £0
Improvement Works (£160, 204) £0 £0 £0 £0
Asset Purchase £100,000 £0 £0 £0 £0
Corporation Tax Paid £0 £0 £0 (£1,732) (£4,724)
BSC Share Withdrawal £0 £0 £0 (£12,500) (£12,500)
Shares Repaid £0 £0 £0 (£9,612) (£9,324)
Change in cash in period £6,091 £15,767 £26,794 £8,986 £21,597
Cash at Beginning of period £0 £6,091 £21,858 £48,652 £57,638
Cash at end of period £6,091 £21,858 £48,652 £57,638 £79,235

 Note

  • Forward-looking statements are merely unaudited projections based on a number of assumptions and should not be relied upon as indicators of future performance. There is no guarantee these projections will be achieved.

Key assumptions

The key assumptions underlying these projections are as follows:

  • The projections are based on zero inflation
  • No assumptions are made about future growth
  • They show how the projected annual interest payments and maximum allowable withdrawals will be funded.

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