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Future Wolverton - OFFER CLOSED

Financial performance

Please note that this information is no longer updated and is for reference purposes only.

Future Wolverton is looking to raise £200,000 through this share offer to refurbish the currently derelict Old School Grade 2 listed building into a thriving centre for community and education use.

Project costs

Future Wolverton's plans are to refurbish the hall for hire and the kitchen, to add a new extension to the rear, and to create level access into the hall. The society is hoping to construct a new build conservatory style extension to house the cafe. The caretakers’ house will be converted into a 3 bedroomed guesthouse with internal changes made to ensure all of the rooms have their own bathroom facilities. If the full £200,000 is raised the project will include adding more environmental and energy efficiency features to both sides of the building.

The cost for this work has been estimated at £400,000. Future Wolverton has already secured over £150,000 in grant funding towards the refurbishment costs. 

Project income

Future Wolverton will derive income from two primary sources. These are:

  • Venue hire: Income from the hiring out of the hall and the cafe space
  • Guesthouse rental: Income from renting out the three rooms in the guesthouse

Annual return

Future Wolverton projects that Members will start earning a 2% gross annual interest rate from the 2019/20 financial year.

This withdrawable share offer is eligible for Social Investment Tax Relief (SITR), which means that, depending upon an individual's tax status, investors may be able to claim up to 30% tax relief on their investment.

Including for SITR, the IRR over the lifetime of this investment is 4.55%

Financial projections

Projected profit and loss

A summary of the Society’s projected income and expenditure and the the occupancy rates upon which these are based are included in the tables below :

2018/19 2019/20 2020/21 2021/22
Income £31,114 £46,686 £57,381 £65,820
Expenditure £36,624 £44,272 £45,445 £46,690
Profit/(Loss) (£5,510) £2,413 £11,936 £19,130

 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.

Projected guesthouse occupancy

2018/19 2019/20 2020/21 2021/22
Guesthouse Weekday (days) 65 92 92 92
Guesthouse Weekend (days) 18 40 47 47

The level of occupancy included in the forecast figures for the guesthouse are deliberately conservative, and are based initially on securing bookings from a number of businesses which the School already has links with, followed by a gradual increase in bookings from local people and the general public.

Projected community space hire

2018/19 2019/20 2020/21 2021/22
Community space hire (hours) 1158 1562 1730 1730

The predicted level of occupancy for the hire of the community space is based upon a gradual increase over a period of 3 years, with a seasonal differential to take account of community events and activities that take place in the area in the Spring, Summer and at Christmas.

Key assumptions

 The key assumptions underlying these projections are as follows:

  • Inflation is at 2% throughout.
  • Interest is paid at 2% to members on their share investments, starting in 2019/20, with interest due to members against their shares reinvested into the member share accounts.
  • Shares start to be withdrawn at the end of 2021/22 4 years after the initial purchase
  • Community space hire is based on the prices set out in “The Old School” section in the Business Plan,starting with an average of 35 hours per month of hire at the start of 2018/19 and increasing to an average of 145 hours per month at the end of 2021/22. Hire of community space brings in an income of £17.5k in the first year of trading, rising to almost £37k in 2021/22 when it then reaches capacity and stabilises at that rate with further increases related to inflation.
  • Guest house income is based on the prices set out in “The Old School” section in the Business Plan, with an average 5% weekday occupancy and 15% weekend occupancy at the start of 2018/19, rising to 45% weekday occupancy and 30% weekend occupancy by the end of 2021/22. The Guest House income is based on 3 rooms for hire. Based on these assumptions, the guest house provides £13.5k in 2018/19 rising to £29k in 2021/22.
     
  •  Future Wolverton's other potential income and associated costs outside of the Old School are not included in the model for financial conservatism. The core running costs of Future Wolverton however are included in the financial model. Future Wolverton starts to pay for its half of the costs of the office that it shares with Wolverton Community Energy from the start of 2018/19. These costs are set at £4,000 pa.

 

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