Questions on buying shares in “The Old Ship Inn Cawsand Limited”
How is the Community Share investment money being spent?
We would like to clarify that every penny of the Community Share money received from private investments will be used for the purchase and immediate repair costs at the Old Ship – none of the money will be used for salaries.
Can the Trust give us some clarification on salary payments?
The Old Ship Inn Cawsand Ltd is pleased to pay our staff a fair living wage for the work that they do. There are no bonuses, incentives, commissions or any other hidden payments. The current pay rates are as follows:
General Manager, £127/day, equivalent to £33,000 per year full time. We have never had the income to pay the full 5-day-per-week amount, so the actual amount paid is around £25,000/year.
Project Managers (finance/admin, technical). £95/day, equivalent to £25,000 per year full time. We have no staff on full-time contracts, so this amount is reduced pro rata to match the number of days actually worked.
Support Workers (admin, project support). £73/day, equivalent to £19,000 per year full time. Again, we currenlty have no staff on the full time rate.
The board have set these salaries and they are commensurate for the work load and responsibilities that our team have, and apply to both The Peninsula Trust itself and to our new project to rebuild the Old Ship Inn.
Why should I buy community shares?
We need your investment to help purchase the Old Ship. Without sufficient investment from the community, we will be unable to buy the building to create the benefits that we are planning, so the opportunity for very worthwhile community facility would be lost. It will remain a ruin unless and until another purchase can be found.
Who will benefit from this project?
The residents of the Rame Peninsula will benefit directly from having a vital amenity preserved for future generations, both through the use of the facility itself but also because the Old Ship will play a part in making the area a stronger, more vibrant and cohesive community in which to live. The secure housing, at rents local people can afford, will be a very real benefit to our area. We know that affordable housing is the biggest issue facing local residents and their families.
Is this a good business proposition?
We expect and will require the business to be a profitable venture. We have carefully evaluated its strengths and weaknesses and our projections show that we can establish it as a successful business. It is well proven that communities that work together to set up such an enterprise will support it in the future. For the full business plan see the document here on our site.
Who are the people behind this project? Do they have a personal interest?
The Management Board consists of a group of local residents who care passionately about the Old Ship and the benefits it can bring to our area. They will have no personal financial interest in the project, above and beyond their own investment in community shares. They have voluntarily contributed a large amount of time to the project and this has been supplemented with advice and considerable support from many people and organisations.
Who will run the Old Ship and make the day-to-day decisions about the business?
The Management Board will oversee the business and ensure that it meets the goals set down in the vision statement. We intend to appoint an experienced manager to oversee the day-to-day running of the pub. There will be governance and reporting arrangements in place to monitor financial and other performance. We will ensure that there is an ‘open book’ approach to sharing feedback and other information between the Society and the manager. Shareholders will be invited to meetings to discuss significant decisions about the Old Ship.
Do my shares give me voting rights?
Yes, they do. Everyone has an equal voice, regardless of the size of their investment.
How do I get my money back?
You will be unable to withdraw your shares in the first three years. After that, you will need to give at least three months’ notice. You cannot sell or transfer your shares, and withdrawals must be funded from surpluses or new capital raised from members. The Board may suspend withdrawals depending on the long-term interests of the Society, the need to maintain adequate reserves, and the commitment to the community we serve.
What happens if the purchase of The Old Ship Inn Cawsand falls through?
It is possible that we will be unable to complete the purchase, even though we have an in-principle agreement with the current owners. That said, we are confident we can secure the funds. In the unlikely event that we are unable to complete the purchase, we will return any funds we have received though we will endeavour to exhaust every avenue before getting to this point. As the timetable for this process is not within our control, we cannot be definitive about when we might come to this conclusion, but we will communicate developments to members and should we have not purchased the building within 12 months of the share offer closing, we will call a meeting of members to get permission to continue to hold the funds.
Will I get my investment back if The Old Ship Inn Cawsand fails?
All the business’s assets, including the freehold of the building, would be sold and the proceeds of the sale (after paying any creditors) divided between the shareholders up to the value of their shares. You might receive the full value of your shares back or you might lose part or all of your investment; this would depend on the state of the property at the point of the society failing.
What redress do I have if the business fails and I lose the value of my shares?
This share offer is unregulated, as it is exempt from the Financial Services and Markets Act 2000 or subsidiary regulations, which means there is no right of complaint to the Financial Ombudsman, nor can you apply to the Financial Services Compensation Scheme.
Will I receive interest from my shares?
We aim to pay a reasonable interest rate to our members. Our Business Plan assumes we will pay 3% interest, but this will always be dependent on the success of the business. Interest will be paid gross and it is each member’s responsibility to declare such earnings to HMRC if appropriate.
Are investments eligible for tax relief?
Yes. We have approval from HM Revenues and Customs (HMRC) that the shares in The Old Ship Inn Cawsand are eligible for tax relief under the Seed Enterprise Investment Scheme (SEIS) and the Social Investment Tax Relief scheme (EIS) which are both government-backed schemes designed to encourage investment in smaller enterprises.
How can I find out more about the project?
You can find our Business Plan and the Rules for our Society or contact us via the Rame Centre, 3 West St, Millbrook PL10 1AA or by phone on 01752 658516. Like our Facebook page to keep udated with all the news and progress.