This website uses cookies

We use cookies and other tracking technologies to assist with navigation and your ability to provide feedback, analyse your use of our products and services, and assist with our promotional and marketing efforts. View our Privacy Policy

Get Cycling

Financial performance

Having operated events and programmes for so long through Get Cycling CiC, Get Cycling CBS know that there is demand for the services they will provide, and know the profit margin that these services can generate.

Business Model

The only thing that has held Get Cycling back in the past is that, following diversification into the very successful retailing of capita lintensive disability cycles, they were not able to generate enough extra cashflow to properly support the events and programmes side of their activities.

With the new CBS being freed from that constraint, and the new share capital giving that cashflow, Get Cycling are predicting a very bright future. They are confident that the new staff appointed will help drive the marketing of these events, attract new contracts and bookings, and so grow the revenues.

Get Cycling are also projecting an increase in grant income as their new charitable status as a CBS means they will be eligible for lots more grants, enabling them to undertake projects which may not be so commercial but deliver their mission. They will have the working capital to employ a professional fundraising consultant to support them.

These together enable Get Cycling to be pretty optimistic that they will be able to trade with a healthy surplus, and that surplus means they can pay interest to investors as a thank you for letting them use invested money for three years of trading follwing the 2019 share raise, after which it will be available for withdrawal.

Get Cycling's customer base is, and will be, local authorities, primary and secondary schools, universities, corporate workplaces, community groups and disability support organisations. They operate in city centres, parks, playgrounds, classrooms, car parks, sports halls, office foyers, etc. Engagements range from a single afternoon to intense six-week regional tours of schools, workplaces and town squares. They are booked for Festivals of Cycling and have been prominent at the York Festival of Cycling for the last seven years.

For the first year of trading Get Cycling forecast sales of £228K, about what was achieved for the same operations in 2019 as measured within Get Cycling CiC. There will be big changes in this first year, but profit will be low due to the cost of new staff not yet being fully effective as they bed in. Get Cycling project steadily growing sales and profits for each subsequent year.

Please note that Get Cycling's cash reserves will more than cover the very small difference in Year One between the cash generated from trading and the 4% interest payments they need to make.


Get Cycling's 2019 raise

Get Cycling are looking to raise £200,000 in this share offer so they can start trading in earnest, greatly increasing the number of bike try-out roadshows, schools activity days, get-into-cycling classes, day-classes at York Sports Village, bike loan programmes, cycling support for people with disabilities, and other cycling events. This is all listed in detail their business plan.

The first thing Get Cycling CBS will be doing is buying the necessary assets from Get Cycling CiC. This payment will stay within the CiC, which remains an asset-locked social enterprise, to further its unique work in inclusive cycle retailing locally and nationally.

How will the £200,000 be used?

  • £105,000 will be for working capital
  • £45,000 will be for buying all tangible assets from Get Cycling CiC
  • £50,000 will pay for the goodwill being transferred from Get Cycling CiC

What is ‘goodwill’?

It’s an odd word used by accountants. In Get Cycling's case it covers three things:

  • The loss to Get Cycling CiC of all ongoing income from current orders for events and programmes. This includes, for example, a £50,000 contract for six weeks of events in Aberdeenshire in March 2020 which will bring the CBS an income of £50,000, with fulfilment costs of around £25,000.
  • The value of ongoing repeat business not yet booked, but likely.
  • The value which lies in the historic cost of Get Cycling CiC Events having attained reputation and prominence in the public and private sector over eleven years.


Profit and Loss

Profit & Loss
Year 1
Year 2
Year 3
Year 4
Year 5
Trade Income £225,000 £275.000 £310,000 £330,000 £367,000
Grant Income £15,000 £30,000 £37,000 £44,000 £51,000
Total Income £240,000 £305,000 £347,000 £374,000 £418,000
Cost of Sales £79,200 £100,650 £114,510 £123,420 £137,940
Fixed costs £52,500 £64,475 £66,651 £68,612 £70,630
Salaries £82,880 £108,382 £111,651 £115,028 £146,518
Total Fixed Costs £135,380 £173,127 £178,302 £183,640 £217,148
EBITDA £25,420 £31,223 £54,188 £66,940 £62,912
Depreciation and shareholder interest £19,500 £19,900 19,900 19,900 19,900
Profit before tax £5,920 £11,323 £34,288 £47,040 £43,012


Cash Flow

The following ten year cashflow shows the cash position at the beginnings and ends of each year. From a reading of this Get Cycling anticipate revenue to be sufficient on yearly basis to cover both operating costs to the business and the finance costs. It is highly unlikely that the Society will wish to retain such a high cash balance over time, but it is not appropriate for them to propose investment in future projects not within our current business plan. Please note that the cashflow will within any of the years 2 to 10 be slightly worse than shown due to timings of incomes and expenditures.

Cash Flow
Year 1
Year 2
Year 3
Year 4
Year 5
Community Shares Invested £215,000 £15,000 £15,000 £15,000 £15,000
Bike Try out events £75,000 £85,000 £95,000 £100,000 £110,000
Cycling support programmes £50,000 £70,000 £60,000 £50,000 £50,000
Disability Events and School Days £50,000 £60,000 £70,000 £80,000 £90,000
College of Cycling £20,000 £35,000 £40,000 £45,000 £50,000
Inclusive Cycling Holidays - £20,000 £35,000 £45,000 £55,000
Other and Grants £35,500 £38,000 £46,300 £49,930 £55,923
Total Cash In £442,500 £323,000 £361,300 £384,930 £425,923
Payment to Get Cycling CIC - asset transfer £95,000
New Equipment and vehicles £30,000 £10,000 £10,000 £10,000 £10,000
Supplier payments: event delivery costs £75,075 £101,640 £114,279 £122,077 £135,605
Salaries £92,960 £110,477 £141,149 £145,836 £150,638
Marketing £6,000 £6,000 £6,000 £6,500 £7,000
Rents and Utilities £45,500 £54,085 £55,324 £56,612 £59,951
Cost of raise £9,000
Share withdrawals £29,286 £29,286
Interest paid £8,000 £8,300 £8,600 £7,450 £6,879
Total cash out £361,535 £290,502 £335,353 £377,761 £399,358
Closing Cash Balance £80,965 £113,463 £139,411 £146,580 £173,144

 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.

Need help?

The Ethex team are here to help from 9am to 5pm

https://www.ethex.org.uk/savings--investments_16.html

Invest and save with Ethex to

make money do good

You can browse, compare and invest in a range of products on Ethex platform from bank accounts and ISAs to equity investments and charity bonds that offer a social/environmental as well as a financial return. All you need to do is get started...