Communty Share Offer
Offer Summary & The Finances
About our share offer
Tisbury Community Benefit Society is undertaking a share issue to raise capital to purchase an electric powered mobile refill shop to help reduce plastic pollution in our environment.
Opening date: Tuesday 15th October 2019
Closing date: Saturday 29th February 2020
The board of the society may choose to extend the period of the share offer if they believe that by doing so they increase the chances of reaching the upper target.
Target to be raised: £75,000
Minimum share subscription per person: £25
Maximum share subscription per person: £30,000
Maximum share subscription per organisation (which is a not a society): £40,000
This is a community share issue, which is a much snappier name for what they are legally-speaking: 'withdrawable shares in a community benefit society’.
Community shares are a form of investment that offer both social and financial returns to investors. They have been widely used by UK communities to raise funds to save pubs, sports clubs and arts venues, as well as to set up new business ventures such as wind farms, solar panels and even a distillery.
Unlike shares in companies, you’ll not get a dividend nor are you able to sell them to someone else. Withdrawable shares work a lot more like a bank account, as you get your money back through withdrawing it from the society. However, the society can only give it back to you if we’re doing well as a business (we have to have sufficient trading surpluses and ready cash to enable it to give you your investment back in legal terms).
Like a bank account, we aim to pay interest each year on the investment, which we plan to be 5% (which is the maximum our rules say we can pay) as from the end of year two. We will pay the interest to you directly every year or you can choose to leave the interest with us to be withdrawn in a lump sum when you withdraw your initial investment at some point in the future (interest will not compound). We will send you an annual statement of shares. We will start calculating interest due from the date we start trading, so the first interest payment might only relate to a part of a year.
Each year, the Board will decide how much interest to pay, whether they can afford to allow shares to be withdrawn, and if so, how many. Interest is capped in our rules to a maximum of 5% per year, or 2% above Bank of England base rate, whichever is higher; if we aren’t doing well financially, we can suspend the right to withdraw shares until such time as we’ve turned a corner.
The other way to get your money back is though new investor Members joining and giving us their money in a separate share issue. We do plan to open up the share offer to new Members but that may not be for a few years after this first share issue.
Either way, the best way to get your money back is to continue to support our business and crucially, persuade other people to support us too. That’s the real secret of community ownership – we make the rewards of our success something we can share with the people who matter the most to us.
Please look at our FAQ page for answers to any questions you may have regarding the Share Offer
About our finances
How much do we need in total?
The pie-chart here shows how everything breaks down:
A contingency has been included to allow for unforeseen expenditure which could arise in a project such as this. This would only be used if the additional expenditure could be justified to secure the successful launch of the business.
VAT is payable on the vehicle purchase, which will be reclaimed.
Our business plan is based on a number of carefully considered assumptions
As to revenue,
Average transaction value: £7.50
Average number of transactions per day by end of year 1: 44
Cost of sales assumptions: 57%
As to staffing,
One salaried staff member
30 hours per week of volunteer (unpaid) labour