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en10ergy

Share Offer

£500 minimum

Risk factors

Please note that this information is no longer updated and is for reference purposes only.

All investment and commercial activities carry risk, and investors should consider whether the en10ergy Registered Society is a suitable investment for them in light of their own personal circumstances.

 This offer is not covered by the Financial Services Compensation Scheme.

 


Risks associated with your investment

The Directors believe the following risks to be the most significant for potential Shareholders. However, they do not necessarily comprise all those associated with an investment in the Shares and are not intended to be presented in any assumed order or priority.

  • Capital Risk: Investment in smaller, new and unquoted businesses is likely to involve a higher degree of risk than investment in larger, established companies and those traded on a stock exchange.
  • Repayment: An investment in a share of this type is speculative and involves a degree of risk. The en10ergy Registered Society’s ability to repay the withdrawable share capital is dependent on the continued success of its business model.
  • Security: The Shares are an unsecured investment and will rank behind secured or preferential creditors. In the event of the en10ergy Registered Society’s financial failure, the Shares would have the status of an unsecured creditor and may not be capable of being repaid in full or at all. Please note that en10ergy Regitered Society has an asset lock in place which, in the event of financial failure of the Society, would trigger the transfer of the Society's remaining assets to a nominated beneficiary Society.
  • Liquidity: The Shares will not be traded on a recognised exchange and are therefore non-readily realisable.
  • Long-term commitment: Applicants should consider investment in the Shares as a long-term commitment until the twelve year term of the offer completes as the original amount invested may not be available to them before the repayment date as there is no guarantee of repayment if a request is made to do so by the Shareholder.
  • Withdrawal of shares: Shareholders will have the ability to request withdrawal of their shares after an inital lock-in period of three years from issue of the share certificates. Any request to withdraw shares ahead of the 12 year term of the investment will be at the dicretion of the Board of Directors.
  • Fundraise: If this fundraise does not meet its maximum target then a smaller installation will still go ahead but the overall profitability of the Society may be impacted. This will affect the amount that en10ergy is able to charge the school for supplying electricity from the solar installation.
  • Ombudsman: The Shares are not covered by the Financial Services Compensation Scheme (FSCS) or the Financial Ombudsman Service (FOS).
  • Future performance: Past performance is not necessarily a guide to future performance: Events in the past, or experience derived from these, or indeed present facts, beliefs or circumstances, or assumptions derived from any of these, do not predetermine the future.
  • Financial projections: Hopes, aims, targets, projections (including the financial projections in this offer), plans or intentions contained in this document are no more than that and should not be construed as forecasts.

Investment risk to investor return

  • Changes in government legislation could affect the Feed In Tariff (FIT) and Export Tariff income: Once each system is installed and registered, the FIT tariff is fixed for 20 years, together with an RPI yearly uplift.
  • The Feed In Tariff (FIT) could start at a lower rate if the allocation from 1st July to 1st Oct 2017 were met, and a lower rate was used: There is a Deployment Cap on the capacity that is eligible for a rate for each period, and if it is exceeded the scheme would be given a lower rate. At time of publication only 1 quarter of the final capacity was installed from Jan to March 2107 and the cap has not been triggered so far.This scheme is scheduled to be installed in the first month of the July/September quarter, so is likely to receive the 4.19p. If the capacity had already been met then the lower starting FIT of 4.12p would mean that income would be slightly lower and the subscription from en10ergy would be slightly higher.
  • Income from the Feed In Tariff could be lower than estimated if the Retail Price Index (RPI) rises at lower than 2% on average: The Feed In Tariff rate per kWh is due to be 4.19p in July 2017, at the start of the scheme, rising each year by RPI. If costs, particularly maintenance rose at more than the 2% estimated for RPI the returns may have to be lower than predicted.
  • Yield from the panels could be lower than predicted, due to low sunshine, or system faults, thus reducing income from selling kWh to Woodside. The performance of solar PV systems is impossible to predict with certainty due to the variability in the amount of solar radiation (sunlight) from location to location and from year to year. The estimate used in the financial model is based upon the standard MCS procedure and is given as guidance only. It should not be considered as a guarantee of performance.
  • Operational costs may rise at a faster rate than income during the life of the Project: en10ergy will contract for 5yr all-inclusive maintenance contracts. Because FITs will increase at the RPI rate it is likely that maintenance would not increase at a higher rate.

System and operational failure

  • The Woodside installation may suffer theft or fire: Woodside High School’s site has a comprehensive fire and intruder alarm system. These systems are linked to offsite 24 hour staffed monitoring centres to coordinate appropriate emergency service responses. In addition, the on-site resident Facilities Manager provides additional first response in the case of alarm.
    Woodside High School has a ‘Risk Protection Arrangement for Academy Trusts’
  • The provider of the maintenance contract that includes inverter replacement would go out of business: en10ergy would contract with a new maintenance provider, either inclusive of inverter replacements or at a lower cost to enable en10ergy purchase of inverters.
  • Unexpected circumstances arise during installation eg discovery of asbestos: Haringey have provided an asbestos report for the sports halls confirming that the only asbestos is in a position that will not be disturbed.

en10ergy risks

  • en10ergy not being able to attract and retain directors with sufficient time or skills to continue good management of the project over the 20 years: In the short term the directors listed above are committed to delivering this project and have engaged professional expertise when required. The day to day administration will be contracted out to professional providers. As above, if the en10ergy directors judge that it should be wound up it will be transferred to an organisation with similar aims.

Commercial risks

  • Insufficient funds are raised: A single installation could be undertaken, rather than the two.
  • Woodside Academy and their Freeholder, Haringey Council, might decide they no longer wish to proceed with the leases and/ or installations: We have prepared a licence agreement with Haringey Council and Woodside Academy, as the tenant and electricity customer. en10ergy will not commit funds raised from this Share Offer unless and until agreements have been secured.
  • en10ergy may fall victim to criminal behaviour such as fraud: Potential investors will have Anti-Money Laundering checks.

Offer Closed

 As of the 9th June 2017 this offer is closed

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