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Mustard Seed Property

Financial performance

MSP was established in 2007. Since then the Society has consistently paid members every year, and a recent increase in share interest payment has been made possible through renegotiating an early end to a 10 year fixed rate mortgage.

Track Record

MSP ran a pioneering share raise that enabled it to purchase a flagship property in Helston, which is currently being used as a support house for formerly homeless individuals.

MSP has demonstrated during over 10 years operation that it is a sustainable community business which is well-supported and loved by the local community, paying a return to investors every year, and that is responding to an identified local need.

Financial Forecasts

Please 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

Share offer

Application of funds
Repayment of Longmead Trust loan £54,000
Cost of fundraising £34,700
Property acquisition £275,000
Acquisition costs £16,500
Refurbishment costs £200,000
Total costs £580,200
Reserves £19,800

Profit and Loss

Profit and Loss 2016 (actual) 2017 (actual) 2018 (forecast) 2019 (forecast) 2020 (forecast)
Net rental income £23,054 £24,380 £24,868 £44,365 £54,942
Feed in tariff - £940 £959 £978 £998
Grants £8,283 £9,352 - - -
Total revenue £31,337 £34,672 £25,826 £45,343 £55,940
Operational expenditure £2,971 £3,391 £3,894 £4,830 £5,337
Special projects £8,283 £9,352 - - -
Cost of raising capital - - £34,700 - -
Operational profit EBITDA £20,083 £21,929 (£12,767) £40,513 £50,603
Depreciation £796 £796 £796 £796 £796
EBIT £19,287 £21,133 (£13,563) £39,717 £49,807
Loan interest £7,004 £5,580 £6,273 £4,761 £5,073
Shareholder interest £5,158 £6,089 £6,089 £27,089 £34,828
Retained profit £7,125 £9,464 (£25,925) £7,867 £9,905

Cash Flow

Year
2016
2017
2018
2019
2020
Rental Income £23,054 £24,384 £24,868 £44,364 £54,942
Feed in Tariff - 940 959 978 998
Total Revenue £31,337 £34,675 £25,826 £45,343 £55,943
Expenditure £2,971 £3,391 £3,894 £4,830 £5,337
Operational Profit £19,287 £21,929 -£12,767 £40,513 £50,603
Loan Interest £7,004 £5,580 £6,273 £4,761 £5,073
Shareholder Interest £5,158 £6,089 £6,089 £27,089 £34,828
Shareholder Int Rate 3.0% 3.5% 3.5% 3.5% 4.5%
Retained Profit £7,125 £9,464 -£25,925 £7,867 £9,905

Key assumptions

The key assumptions underlying these projections are as follows:

  • Inflation at 2%
  • Property management costs are 4%
  • Base rate increase is set at 0.5% p/a
  • Rent free period of 4 months

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