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St Ives Community Land Trust

Financial performance

The long-term model for St Ives CLT will see the CLT continue to raise capital through community shares and commercial debt along with donations and grant aid. St Ives CLT aims to buy, renovate and/or build properties for accommodation, business and community use, leading to a portfolio of properties that yield sufficient rental income to ensure the long-term viability of the CLT.

Current Position

At the last Annual General Meeting 7 January 2018 the accounts to 31 March 2017 were approved by members, showing reserves of £39,548, income of £43,606 and costs of £4058. To date, the CLT continues to tightly manage its finances and benefits from the voluntary or pro bono support from its members and advisors. There is currently donated office space and equipment and as the portfolio of projects increases, it is anticipated that a central office location will be sought.

The other key project on the horizon is the acquisition of a further building to provide affordable workspaces which will include our permanent office base. To date St Ives CLT have been successful in receiving Awards for All funding, Co-Op Community Funding, REACH funding, St Ives Trust as well as a feasibility grant from the Community Housing Fund to enable survey work on the Old Vicarage Flats building

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

Capital Targets

The minimum target capital raise for the 2019 community share offer is set at £170,000 which will enable St Ives CLT to pay down a short term (1 year) loan which is already agreed by CAF Venturesome, for part-purchase of the Old Vicarage property. The mid-point capital raise of £300,000 will enable St Ives CLT to undertake the main renovation.

The full capital raise will enable development to include one flat which may be developed to a superior standard or to include enhanced disability living aids. Raising the full target amount of £500,000 will also enable St Ives CLT to avoid expensive short- term finance for the renovation period, and support development work on other properties in our project pipeline.

Forecasts 2019-2023

Income 2018 - 19 2019 - 20 2020 - 21 2021 - 22 2022 - 23
Rents £41,101 £42,334 £43,604
Grants £347,500
Loans £500,000
CLT Funds £3,700
Local Fundraising £72,000 £55,000 £5,000 £5,000 £5,000
Totals £575,700 £902,500 £46,101 £47,334 £48,604
Expenditure
Acquisition (£570,000)
Development (£440,000)
Fees/Repairs (£3,700) (£17,700) (£13,739) (£13,896) (£10,058)
Loan repaid (£200) (£174,958)
Mortgage (£16,500) (£28,060) (£23,034) (£26,035)
Share Capital Repaid (£25,000)
Share Capital Interest (£20,000) (£20,000) (£20,000) (£20,000)
Totals (£573,900) (£669,158) (£61,709) (£56,930) (£71,092)
Surplus £1,800 £235,141 £219,443 £209,846 £181,357

Key assumptions

The St Ives CLT project plan assumes that investors will seek to withdraw their shares from year three onwards, at a rate of £25,000/year, with the cashflow model supporting this rate of withdrawal

The potential of over-capitalisation will be mitigated over time should the anticipated grant aid situation change as funders potentially restrict their expenditure. Local fundraising is a route for donations and will continue each year. The figures shown are the minimum target for this activity.

ESF contributions are in-kind using the project as an opportunity for apprentice training and development through an existing and established construction provider that covers labour charges, whilst the project pays for materials.

The project plan includes continued application for grant aid some of which is dependent upon gaining Registered Provider status. Community Housing Funds in particular require application. St Ives CLT have begun this process and hope to take advantage of National Community Land Trust guidance on the Community Led Housing grants newly available to assist with this in due course.

St Ives CLT are confident that their business model will meet requirements. Nevertheless, in sensitivity analyses in readiness for the  project to commence they are mindful of giving consideration to a variety of capitalisation options. St Ives CLT have specifically excluded the underlying options of selling one or more the flats on a shared equity basis, but will consider this action should economic circumstances change to warrant this course of action.

Shares in the St Ives CLT CBS are unquoted securities and may be considered to be riskier than quoted securities and shares.

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