hcgc community share offer document 020619 · to encourage healthy living through gardening and...

HulmeCommunityGardenCentre–CommunityShareOffer2019

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HulmeCommunityGardenCentre

CommunityShareOfferFromParkingLottoParadise:helpthepeopleofHulmeCommunityGardenCentregrowtheirindoorspaceandincreasesocialimpact.


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OpeningSummary:

Keydates

Openingdate:1stJuly2019

Closingdate:31stJuly2019

Fundraisingtargets

Minimumtarget:£130,000(including£65KmatchfromPowertoChangeBoosterprogramme)

Maximumtarget:£200,000(including£100KmatchfromPowertoChangeBoosterprogramme)

Individualinvestments

Minimumindividualinvestment:£100

Maximumindividualinvestment:£20,000(or10%ofsharesissued)

Institutionalinvestments

Minimuminstitutionalinvestment£1,000

Maximuminstitutionalinvestment£100,000(limitedto50%ofactualinvestment)

Thisdocument,ourbusinessplanandrulesareavailableonlinehere:https://hulmegardencentre.org.uk/

HulmeCommunityGardenCentreLimited(HCGC)

CommunityBenefitSocietyregisteredundertheCo-operativeandCommunityBenefitSocietiesAct2014.Registerednumber28958R

HMRCCharitiesreferencenumber:ZD00680

28OldBirleyStreetManchesterM155RG


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Inordertoensurethatthisofferconformstobestpracticearoundcommunityinvestment,wehavesoughtandbeenawardedtheCommunitySharesStandardMark.TheCommunitySharesStandardMarkisawardedbytheCommunitySharesUnittooffersthatmeetnationalstandardsofgoodpractice.Thesestandardsensurethat:TheofferdocumentandapplicationformareeasytounderstandYouareprovidedwithallthefactsyouneedtomakeaninformeddecisionThefactsaresupportedbytheannualaccountsand/orbusinessplanforHulmeCommunityGardenCentreNothinginthedocumentsispurposefullyincorrect,confusingormisleadingSocietiesareaskedtosignaCodeofPracticerequiringthem,amongotherthings,togivethepublicarightofcomplainttotheCommunitySharesUnit.Formoreinformationaboutcommunityshares,theCommunitySharesStandardMarkandtheCommunitySharesUnitgoto:www.communityshares.org.uk

Yourfinancialrisk:

Thisdocumentisimportantandrequiresyourdetailedconsideration.Duecareandattentionhasbeentakeninpreparingthisofferdocument.TheprocesswasoverseenbytheboardofHulmeCommunityGardenCentreLimitedwhocanvouchthattheinformationitcontainsisinaccordancewiththefactsavailableandthattherearenoknownomissionslikelytoaffecttheviabilityofthebusiness.IfyouwantanyadviceyoushouldconsultwithanindependentfinancialadviserauthorisedundertheFMSA2000

ItshouldalsobenotedthatmembersofcommunitybenefitsocietiesdonothaveaccesstotheFinancialOmbudsmanServiceortheFinancialServicesCompensationScheme.

RISK

Thepurchaseofsharesisatfullriskandifthebusinessfailsitispossiblethatyouwillneverrecoverthefullvalueofyourshareholdingorevenloseitcompletely.

ShouldHulmeCommunityGardenCentreexperiencefinancialdifficulties:wemaynotbeinapositiontopayinterest;wemayhavetosuspendinvestors’rightstowithdrawshares;andinvestorsmaylosesomeorallthemoneypaidforshares.

AsHulmeCommunityGardenCentreLimitedhasbeenincorporatedwithlimitedliability,theliabilityofitsMembersislimitedtotheamountpaidfortheirshares.

PleasereadthisentireCommunityShareOfferdocumenttogetherwithourBusinessPlanandSocietyruleswhichcanbefoundonlineathttps://hulmegardencentre.org.ukbeforeyouapplytobuycommunityshares.


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Whyweareseekingthisinvestment

For the first time inHulmeCommunityGardenCentre's (HCGC)history theyare launchingaCommunityShareOffer(CSO).ThisisachancetoinvestinauniqueurbanoasisintheheartofManchesterandtohelppromote aworldwith healthy, happy communities, where people are valued, connected to nature andtheir local economy. Our Vision –We believe in a world with healthy and happy communities, wherepeople are valued, connected to nature and their local economy. By growing togetherwe are naturallybetter!

‘Bygrowingtogetherwearenaturallybetter!’Ourmission is to run Hulme Community Garden Centre as a vibrant garden centre and safe, accessiblegreenspacethat:

● Sells ethically and sustainably sourced plants and environmentally friendly home and gardenproducts.

● Improves health and well-being by providing opportunities for volunteering and nature-basedactivitiesandarefugeforwildlifeintheheartofthecity.

● Isaninspiringcommunityanchorsupportingandnurturingoursustainablelocaleconomy.

‘Weareagardencentrewithadifference,thatmakesadifference’

TheoverallpurposeofthisinvestmentistofurtherdevelopHulmeCommunityGardenCentremakingitfinanciallymorestableandbetterabletodeliveritssocialimpact.

Ongoingbusinessplanningfrom2014,andperiodsofintensecommunityconsultationandreviewhaveidentifiedastrategyofincreasingtradedincome(whichisalwayssupportedbyprimarypurposeactivities)anddecreasingrelianceongrantfunding,withkeyareasofgrowthidentifiedandoutlinedinthebusinessplan.Despitesignificantprogressbeingmadetostaffing,marketingandgovernance,theon-sitefacilitiesforstaff,volunteersandcustomersarenotfitforpurposeandarelimitingthegrowthofHCGC.

Themainissuesidentifiedarealackofwarmindoorspace,whichpreventsyear-roundusebyvolunteersandserviceusers,especiallythosewithadditionalneeds.Thehiddenentranceispoorlydesignedandwewanttomakeoursitemoreaccessible,soabsolutelyeveryonecanenjoyourgarden.Byboostingplantsalesandproductionandinsufficientplantproductionwecanincreasefootfallandopportunitiesforvolunteeringandtraining.Withabiggershopwecanincreaseourturnover,makingsurewe’resettothriveforyearstocome.IncloseconsultationwiththecommunityHCGChavedrawnupaMasterplanwithURBEDArchitects.Thenewinfrastructurewillfulfilavarietyofpurposes,inordertoprovideamorecompleteserviceforthecommunityandtocreateamorecohesivespacewithinwhichtodothis.Theseexcitingplansinvolvecreatingabigger,inspirationalindoorshopstockedwithlocallyproducedplantsandcrafts,afunctionalofficespaceforupto10staff,awarmhubforourvolunteerswiththoseallimportantbrewmakingfacilities,animprovedcafeareawithindoorspace.We'llalsoinstallnewflushing,accessibletoiletswithbabychangingfacilities.Thiswillbeanenvironmentallyfriendlyproject,usingrepurposedshippingcontainerstocreateahappyspaceforfriends,familiesandgroupstospendtimetogetherinatrulyinspiringenvironment. We’rekeepingcostsdown,andsocialimpactup,bymaximisingtheuseofwillingvolunteersfordesign,planningandtheactualbuild.PlanningpermissionwasreceivedinMarch2019andwe'reraringtogo...


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Ourcommunity

HulmeinManchester,andthesurroundingarea,isarapidlychangingcommunity,consistingoftheremainsofatraditionalworkingcommunity,manyyearsofactivecitizensexperimentingwithco-operativesand“alternativeliving”.Morerecentdevelopment,associatedwiththeuniversity,isbringingthenextgenerationofpeopleintothiscommunitythatisattheforefrontofpioneeringsolutionstothechallengesfacedbytheresidentsofManchesterandofwidersociety,frommentalhealththroughsocialinclusiontoclimatechange.

HCGCoperatesonprinciplesofcommunityinvolvementandbehaviourchange,thiswillrunthroughouttheredevelopment,byinvolvingthecommunityfromtheverystartandwithongoingopportunitiesforhands-oninvolvement.Behaviourchangeisbestactivatedfrombeinginvolvedinaprojectandseeingforoneselfhowapersoncanimpactontheenvironment…beinginvolvedinthebuildandthewiderprojectwillbealife-changingexperienceformanyHCGCparticipants.Theprojectwillincludeawiderangeofvolunteerswhichwillreflectthecurrentprofile:arangeofagesandaround30%ofpeoplewithadisabilityormentalhealthproblem.HCGCoperateanopenaccesspolicyanddotargetedrecruitmentinmanyareas.

Weanticipatethatthisofferwillsignificantlyincreaseourcommunitymembershipwithapproximately300investors.Weareparticularlykeentoattractinvestmentfromthelessaffluentmembersofourcommunity,ideallyfromtheHulmeandGreaterManchesterarea,andsohavesettheminimuminvestmentlevelat£100.


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Thestorysofar

HulmeCommunityGardenCentreisacharityownedbyitscommunity,employing9localpeopleandwithaturnoverof£300Kperannum.Ouroriginswereinacommunitygardenprojectestablishedonthecurrentsiteby3localpeopleinthelate90’s,lookingtocreateapublicgreenspacefromanareaofscrubland,andtoencouragehealthylivingthroughgardeningandsustainablefoodgrowing.Weregisteredourcurrentstructureasacommunitygardencentrein1999andopenedourgatestothepublicin2000.

Wecurrentlydeliver:

HCGChasfourmainstrandsofbusinessactivity.Theseare:1. PeopleActivities,whichencompass:• Volunteering-avolunteering(non-fee-paying)programmerunningdailywithsessionsgeared

towardsdifferingabilitiesandneeds.• Wellbeingservices-supported(sometimesfee-paying)sessionsforthosewithmorecomplex

healthandeducationalneeds.• Educationandtraining–provisionofavarietyofcoursesandworkshopsaroundgrowingand

using food. From curriculum-based school workshops to themed weekend workshops foradultsandfamilies.

2. Gardencentre-providinggardenplantswithadedicationtoorganicandpeatfreeprinciples.Asmallindoorshopstockschemicalfreesundriesandhouseplantsalongwithlocallymadegiftsand toiletries. The outdoor sales area sells perennials and seasonal edible plants. EdiblesproducedonsitearecertifiedbytheVeganOrganicNetworkasStockFreeandOrganic.

3. GreenProjectDesignandBuild -workingacrossGreaterManchesteronavarietyofprojectssuchascommunityallotments,schoolgardensandcommunitygardensand,increasingly,with


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the private sector. Support ranges from ‘design and build’ garden projects to guidedworkshops.

4. FacilitiesHire-agrowthareaforHCGChiringouttheeco-classroom,gardenpolytunnel,yurtorwholesitetoarangeofclientstohostmeetings,partiesandevenfestivals.

ObjectsofHCGC

ForthebenefitoftheCommunitiesofGreaterManchester:

a) Toadvanceeducationingardening,conservation,foodgrowingandnutrition;

b) Toadvanceeducationandvocationaltraininginhorticultureandtheoperationandmanagementofagardencentre,particularlyamongpeopleandcommunitiesexperiencingdisadvantage,exclusionorsomeothercharitableneed;

c) Toproviderecreationandleisurefacilitiesintheinterestsofsocialwelfare,improvedhealthandwellbeing,throughtheprovisionofacommunitygardenandactivitiesinhorticulture;

d) Theadvancementofcitizenshipandcommunitydevelopmentthroughthesupportofcommunitiestodeveloptheirowncommunitygardenprojects;

e) Tosupportthelocalcommunitytodevelopsustainablesocialenterprisethroughtheprovisionofresourcesandsupport.

Socialimpact

HCGCoffersavarietyofopportunitiesanditsbeneficiariesarewideranging:

Ø Peopleexperiencinglongtermunemployment

Ø Peoplelivinginpovertyand/orfinancialexclusion

Ø Peoplewithaddictionissues

Ø Peoplewithlearningdisabilities

Ø Peoplewithmentalhealthneeds

Ø Peoplewithphysicaldisabilitiesorsensoryimpairments

Ø Voluntarycarers

Ø OlderPeople

ASocialReturnOnInvestmentevaluation(2015)suggestedthatevery£1investedinHCGCcouldreturnupto£6tosocietyintheformofsocial,economicandenvironmentaloutcomes.Thisincludeshealthandwellbeing,trainingandskillsaswellasenvironmentalandretailbehaviours.

TheTheoryofChangeforbeneficiariesrevealsmediumtolonger-termimpactsarisingthroughparticipationinactivitiesaround:

Ø Opportunitiesforthelocaleconomyandenvironment

Ø Improvedaccesstotraining,employmentandvolunteering

Ø Improvedhealth,happinessandconfidence

Otherthandirectbeneficiaries,therearealargenumberofindirectbeneficiariesincludingshoppers,groupsandbusinesseswhohirevenuespace,andthecommunitywhoaccessourregularfreefamilyevents.


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In2018HCGCworkedwithbetween60and100individualvolunteerseachquarterwhoconsistentlygavetheirtime,logginganaveragecombinedtotalof260daysatHCGC.Thisistheequivalentof4fulltimestaffmemberswhichobviouslymakesahugecontributiontotherunningofHCGC.Themajorityofvolunteerscontactusdirectlythroughthewebsite,intheshoporbyreferralfromasupportagency.Around25%ofthevolunteersexperiencementalhealthdistressandthemajorityreportpoorwellbeingingeneral.Wealsoengagewith6highschoolstoprovideworkexperienceplacementsforYear10studentsandaccommodateanincreasingnumberofshort-andmedium-termplacements.ThesearestudentsfromManchesterMetropolitan,SalfordandManchesterUniversities(generallySocialCare,Education/EarlyYearsStudiesandOccupationalTherapy)andworkplacementproviderssuchasManchesterYoungLives,Motiv8McrandThePrince’sTrust.Wealsohaveoccasionalinternshipsfromoverseasonalonger-termbasis.

Wereportonthenumbersofserviceusers(thosewithadditionalsupportneeds)andeachquarterengagewitharound20individualsandthesamenumberofsupportworkers/carers.WeworkwithSignHealth,BreakthroughUK,ManchesterDeafCentre,BridgeCollegeandotherstoprovideplacesintwiceweeklysessionsbasedonwoodworkingorgardening.Itisestimatedthat85%ofserviceusersinthisgrouphavementalhealthissues.

Ourhistoricalfinancialperformanceforthelastfiveyearsisdescribedbelow.

Historicalincomeandexpenditure

2014 2015 2016 2017 2018 £ £ £ £ £Tradingincome 133,901 159,140 195,559 214,294 243,640

Grantincome 83,105 90,173 72,519 73,569 56,533

Otherincome 58 22 - - 2,912

Totalincome 217,064 249,355 268,118 287,863 303,085

Totalexpenditure 240,007 287,672 276,188 293,887 314,069

(Deficit)/Surplus (22,943) (38,317) (8,070) (6,024) (10,984)

Historicalbalancesheet

CurrentAssets 79,509 56,499 56,184 89,132 42,570

CurrentLiabilities (31,341) (32,447) (33,393) (63,127) (12,145)

FixedAssets 54,325 43,260 34,559 26,304 29,980

Sharecapital 7 7 7 44 78

UnrestrictedFunds 102,486 66,359 58,289 52,265 46,129

TotalFunds 102,493 66,366 58,296 52,309 46,207

Thereisanincreaseintradingincomeovertimeandafallindependenceofgrantincome.Thisinvestmentwillallowustocontinuethattrend,whichcontinuesinearly2019(seebusinessplanfor2019partyearfigures)andtoincreasegrowthandsustainability.


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Governance–howweareorganised

HulmeCommunityGardenCentreLimitedwasregisteredin1999asaCommunityBenefitSocietyandwearesubjecttotheCo-operativeandCommunityBenefitSocietiesAct2014.Wearealso,byvirtueofourcharitableobjectsandgovernance,registeredasanexemptcharitywithHMRevenueandCustoms.

HCGCisownedandcontrolledbyitscommunitymembersonanequitablebasisandmembershipisopentoanypersonororganisationwhosupportstheobjectsofHCGC.

HulmeCommunityGardenCentrecurrentlyhas78memberswhohavetheminimum£1sharerequiredformembership(referredtoas‘membershipshares’).Thisshareofferwillcreateasecondclassofmemberhavingaminimumshareholdingof£100(referredtoas‘investorshares’).ThedifferentclassesofmemberwillhaveequalrightstocontroloverHCGC,butinterestwillonlybepaidonshareholdingsof£100orover.Therewillstillbetheopportunityformembersofthecommunitytojoinwitha£1shareandexistingmembersareencouragedtoinvest£100ormore.Communitysharesbuildstronger,morevibrant,andindependentcommunities.InvestinginHCGCcommunitysharesisasimple,directandengagingwayofsupportingouraims.

Ourrulesincludeanassetlock,whichtogetherwithourcharitablestatusmeansthatourassetscanonlybeusedforcommunitybenefitandifHCGCiswoundupatanystageinthefuture,shareholdersareentitledtoreceivethevalueofanyremainingsharecapitaltheyhaveinHCGCrepaidfromHCGC’sassetsafterallcreditorshavebeensatisfied.Anyadditionalmoniesafterrepayingshareholderswouldbepassedtoanothercharitywithsimilarobjects,andnottoshareholders.

MembersofHCGCelecttheBoardofDirectors,whocurrentlyare:

Chair:RichardLockwood

HavingbeeninvolvedfromHCGC'sinception,RichardhasbeenChaireversince,helpingtokeepitonitsoriginalbutevolvingmission.Hecamefromabackgroundoftenantactivism,andhadworkedinTenantParticipationduringHulmeCityChallenge[regeneration]beforeworking(paid&unpaid)inthelocalVCS:hehasbeenTreasureratAquariusCommunityCentresince2009,andhasworkedastheDevelopmentWorkerforWesleyCommunityFurnituresince2001.

Treasurer:MikeSimpson

GroupHeadofGrowthwithOneManchester,ahousingassociationworkingincentralandeastManchester,currentlyleadingonthedevelopmentanddeliveryofOneManchester'sgrowthstrategy,includingthebuildandacquisitionofhomes,businessdevelopmentandpartnershipandinvestment,focusedonManchesterandGreaterManchester.Previouslyspent22yearswithManchesterCityCouncilworkinginhousingmanagement,homelessnessandsupportedhousing,regenerationandhousingstrategy.

Secretary:ColinRowe

GraduatedfromManchesterUniversitywithadegreeinPoliticsandModernHistoryandeditedthefabledHulmePigNewspaperforseveralyears.PreviouslyDirectorofHulmeRegeneration-theoverseeingbodyfortheHulmere-development.CurrentlytenantoftheHousingCo-op-HomesForChangeandemployedbyCommunityPrintshop,MarcThePrintersforthelast16years.ColinisalsoaprofessionalStoryteller,parttimeentomologistandphotographer.

ViceChair:TheresaMacaulay

With12yearspreviousexperienceinbusiness,charityandpropertymanagement,TheresajoinedtheboardinJuly2018.CurrentlyworkingasExhibitionsProjectManagerattheScienceandIndustryMuseumshebringswithheranenthusiasmtoimprovethestaff,volunteerandvisitorexperienceatHCGC.


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BoardMember:AgnieszkaKatniak

Aggi(Agnieszka)Katniakhas20yearsofexperienceinmanufacturingandserviceorganisationsacrossmultipleindustries.Herbroadrangeofskillsincludequality,environment,healthandsafetymanagement,processimprovement,informationsecurity,businesscontinuity,projectmanagement,riskmanagementandcorporatesocialresponsibility.Herobjectiveistodevelopintegratedend-to-endprocesseswhichfulfilallrequirementsandarealsoefficient.AggiworksasaQualityAdvisorintherailsectorandalsorunsherownmanagementconsultancy.WhennotworkingAggilovestravellinganddiscoveringnewplaces.

BoardMember:MelanieRawlinson

Mel(Melanie)Rawlinsonhastenyears’experienceinHR,havingworkedacrossawidevarietyofareasofpeoplemanagementanddevelopmentandholdingaMaster’sdegreeinthesubject.Havingmorerecentlymovedintopeopledataanalyticsandsocialresearch,shecombinesskillsandknowledgeofrecruitment,reward,peoplemanagementandorganisation-levelculturechangeandengagementwithafiercedriveforevidence-basedaction.HercurrentroleisinHMRevenueandCustomsdevelopinginsightwhichinformsactivitytoimprovetheemployee(and,byextension,customer)experience.Whennotworking,shereads(alot),tinkerswithprogramming,andisgrowinghergardeningknowledgewithhelpfromhergreen-fingeredfamily.

BoardMember:PaulDarnborough

PaulhasbeenaSolicitorforover30years’experience,enteringthelegalprofessiontohelppeople.Heisatrainedadvocatewithskillsinsideandoutsidethecourtroom.PauluseshislegalskillsandexperienceinasignificantandpositivewaytohelpHCGC.

Theinvestmenttargetandhowitwillbespent

Weintendtoraiseatotalof£200,000throughthisshareoffer.Togetherwithadditionalgrantandloanfinancealreadysecured,hiswillallowustodevelopHCGCasdescribedbelow.

Thisinvestmentwillallowusto:

● Increasetheamountofwarmindoorspace.

● Improveturnoverofthegardencentrewithincreasedsalesspaceandamoreaccessibleentranceandshopfront.

● Increaseprofitability,andsocialimpact,throughtheincreasedproductionofourownplantsforsaleinthegardencentre.

Ourexcitingplansinvolvetheinstallationandfit-outofnine40footconvertedcontainers,thecreationofanother,andevenmoreaccessible,toilet,animprovedcafearea,babychangingfacilitiesandtherefurbishmentofourpolytunnelplantpropagationarea.Thiswillbeahighspec.engineeredmodularbuild,includingacoveredcourtyard.Ahappyspaceforfriends,familyandgroups.

Wearekeepingcostsdown,andsocialimpactup,byutilisingvolunteersfordesign,planningandactualbuild.In2015,wesecuredtheleaseforthesitefor20yearsandhavesecuredplanningpermissionforthebuild.Wehaveincludedalessambitiousandlowercost£130Koptionincaseweareunabletoraisethefull£200Kinvestment.ThecapitalcostsoutlinedonScenario2beloware£20,000lowerthanthecapitalfinanceoutlined,aswewillconducttheworkourselvestherearelikelytobeunforeseencostsinadditiontothecontingency.

Summaryofcapitaldevelopmentworks

Theplanforthe2019developmentdrawsonalltheconsultationworkcarriedoutoverthelastfouryearstoaddresstheneedsidentified.Itwillcreateabiggershop,functionalofficespace,newtoilets,warmhubforvolunteersandanimprovedcafe.


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ThenewmainentrancewillbeonOldBirleyStreet,oppositeOrmsgillStreet,creatinggreatervisibilityofHCGCfromthestreet.Visitorswilldescendfromstreetleveltoafoyerdoorway,whichwillleadintothenewreceptionareaandshop.Theplanrevolvesaroundnine,forty-footconvertedshippingcontainers,whichwillbecranedontositeandhookeduptoservices.Inpreparation,serviceswillbeaddedtoandimprovedacrossthesiteincluding:anewelectricityconnection;localsewageconnection;watersupplyanddrainage;andsubsurfaceroutingofcablesandpipes.

Eightoftheshippingcontainerswillbejoinedandwillcreateadouble-widthand-heightspacehousingalargershop,staffofficeswithstorage,andavolunteerhubwithlockers,seatingandanaccessiblekitchen.Thesecondstoreywillprovideusableofficeandmeetingspace;thiswillbeaccessedviastairsfromtheshop.Anadditionalcontainerwillhousetheimprovedcafé.Thecontainersarearrangedinahorseshoeshapetocreateacoveredcourtyardspaceforadditionalcaféseatingandshopspace.

Thetoiletfacilitieswillbegreatlyimproved,withthecurrentcomposttoiletbeingconvertedtoanaccessible,flushingtoiletwithhotwaterforhandwashing,alongwithababychangearea.Asinglecontainerwillprovidetwoadditionalflushingtoilets.Allthreeofthesewillbeconnectedtolocalservices.OverallthenewlayoutwillprovideHCGCwithvastlyimprovedfacilitiestoexpandproduction,salesandservices.

Timescaleforthebuild,includingconnectiontonewservices,willtakebetween8and14monthsdependantonwhethertheamountofcapitalraisedallowsforawhollyexternalcontractor-ledbuildorreliesonincreasedvolunteerlabour.Oncemajorworkshavebeencompleted,HCGCwillhostapubliclaunchofthenewfacilities.

Impactonrevenuestreams

Byundertakingthiscapitalexpansion,theprimarybenefitforrevenuegenerationwillbeanincreasedshopspace,increasingtherangeofproductsavailableforsale,andasaresultincreasingrevenuefortheenterprisedepartment.Outdoorsaleswillincreaseby15%perannumuntil2022fromwhentheywillincreaseby10%perannum.Indoorsaleswillincreaseby75%overtwoyearsandthereafterby10%perannum.Reorganisingthesalesarea,inadditiontotherecentreskinningofthepolytunnels,willallowagreaterlevelofinternalproductiontotakeplace,whichinturnmeansagreaterprofitmargincanbegenerated.

Improvedshop,caféandtoiletfacilitieswillallowHCGCtomarketitselfasadestination.Anurbanoasiswherepeoplecanmeet,chat,getbacktonatureandtakeapieceofithomewiththem.IncreasedvisibilityfromthestreetwillorganicallyincreasefootfalltoHCGCfromthosepassingby.AwarmspaceforvolunteersandindoorspaceforactivitieswillincreasecapacityforHCGC’scharitableobjectivesbyprovidingamuchmorewelcomingenvironmentforserviceusersandvisitors.

Theproposedcapitalworkscreatestwonewincomestreamsthroughrentalofofficestoothersocialenterprisesandrentalincomefromacafe.Thecafewillbeputouttotenderandmanagedbyaseparatenon-profit-makingorganisationbutitwillbothprovideasmallrentalincomestreamandincreasefootfalltotheCentre,drivingupsales.WehaveseveralexpressionsofinterestfromorganisationswishingtorentofficespaceatHCGCincludingTheOrchardProjectandTheSchoolofArchitectureforChildren.

Facilitieshirewillincreaseonsiteby25%inthefirstyearandthereafterby10%perannum.Visitorfeedbackhasshownthatthecurrentbusinessislimitedbyhavingonlyonecompostingtoilet.Byaddingtwoadditionaltoilets,makingthemflushableandaddingbabychanging,wewillimprovefeasibilityof,andfeedbackfrom,facilitieshire.Followingthebuild,atargetedmarketingcampaignwilltakeplace.


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CurrentviewofHulmeCommunityGardenCentrefromOldBirleyStreet,April2019

ProposednewentrancetoHulmeCommunityGardenCentre


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Breakdownofcapitalfinance

Item Scenario1:£200Kinvestment

Scenario2:£130Kinvestment

Communityshareissue £100,000 £65,000

MatchedinvestmentfromBoosterprogramme

£100,000 £65,000

GrantfromBoosterprogramme £8,200 £8,200

LoanfromCo-operativeCommunityFund(interestfree)

£50,000 £50,000

NHSWellbeingGrant £5,000 £5,000

OneManchesterCatalystFund-Grant £5,000 £5,000

UniversityConstructionCommunityFund £1,000 £1,000

10:10ClimateActionfunding £4,000 £4,000

Totalfinance £273,200 £203,200

Breakdownofcapitalcosts:

Item Scenario1:£200Kinvestment

Scenario2:£130Kinvestment

Admin&infrastructurecostsaroundplanningandcommsupgrade

£13,618 £10,618

Preparatoryworksaroundservices £10,100 £8,450

Groundworks £35,500 £11,700

Newtoilets(costandinstallation) £5,000 £3,000

Containerbuild(includesfit-outforsecondoption)

£130,000 £67,000

Fit-outmaterials Includedinabovefigure £20,000

Costsancillarytofit-out £15,250 £15,250

Boosterbusinessplanningandshareofferconsultancy

£8,200 £8,200


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Crowdfunderfees(Public@5%,Booster@2%) £7,000 £4550

SolarPanels £4,000 £4,000

Contigency@20% £42,694 £28,004

TotalexclVAT £271,362 £180,772

CurrentinternalviewofHulmeCommunityGardenCentrewherenewbuildwillbesited,April2019

ProposedvisionofnewbuildtoHulmeCommunityGardenCentre


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Ourbusinessplan:

Thecapitalinvestmentinthesitedescribedabovewillallowustofurtherincreaseourprofitabilityandturnover,whichisalreadyincreasingsteadily.

Inparticular,theinvestmentwillprovide:

• Animprovedandmorewelcomingentrancewilldrivefootfall.

• Increasedsalesspacewillincreaseindoorsalesthroughalargerrangeofitemsandayearroundoffer.

• Betteron-sitefacilitieswillimprovethevisitorandbeneficiaryexperience,increasingsocialimpactand,encouragingpeopletoremainlongerandreturnmoreoften.

• Increasedon-siteplantproductionwillprovidegreatervolunteeropportunitiesandallowustogreatlyimproveourprofitabilitybyreducingourcostofsales.

• Additionalrevenuewillbegeneratedbyhiringthenewofficespaceandcafe.Wealreadyhaveprospectivetenantslinedup.

Forafulloverviewofourplans,marketresearchandassumptions,pleaserefertoourfullbusinessplan,whichisavailableat:https://hulmegardencentre.org.uk/

Theincreasedturnover,asaresultofthetwodifferentcapitalbuildscenarios,isforecastbelow:

Themaindifferenceincostsbetweenthetwoscenariosistheuseofvolunteersinconstruction,thequalityofthefit-out,thetimeforcompletion.Themaindifferenceinincomebetweenthetwoscenarios,isthelossofrentalincome,intheearlyyears,fromofficespaceinScenario2.


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Scenario1–maximumraise£200,000

Income(£200Kraise) 2019 2020 2021 2022 2023 £ £ £ £ £

Activitiestrainingandeducation

28,969 21,748 22,041 22,458 22,786

Facilitieshire 8,344 16,078 17,416 18,548 19,784Gardencentrerelated 198,657 230,105 277,776 304,380 333,645Grants&consultancy 70,906 68,739 51,739 26,739 26,739Totalincome 306,876 336,670 368,971 372,125 402,953Note:thereductioninactivities,trainingandeducationturnoverisasaresultofourreduceddependenceongrantfunding.Thecorrespondingexpenditure(includingthepaymentofinterestonsharesanddebt)andtheresultingsurplusisforecastbelow:

Expenditure 2019 2020 2021 2022 2023 £ £ £ £ £

CostofSales 101,661 107,493 121,852 134,037 147,441Wages&Salaries 150,141 153,144 156,207 159,331 162,518OtherOverheads 35,949 36,668 37,401 38,149 38,912Depreciation 8,592 22,160 22,160 22,160 14,030Shareinterest(3.5%) 0.00 0.00 0.00 7,000 6,545Totalexpenditure 296,343 319,465 337,620 353,547 369,217

Surplus £10,533 £17,205 £31,352 £11,448 £33,508TheeffectonthebalancesheetofHCGCisforecastbelow:

2019 2020 2021 2022 2023 £ £ £ £ £FixedAssets 168,997 280,834 258,674 244,644 230,842CurrentAssets 161,859 61,544 102,482 110,131 131,621CurrentLiabilities (24,116) (24,683) (24,609) (24,150) (24,057)LongTermLiabilities (50,000) (43,750) (31,250) (18,750) (6,250)Totalnetworth 256,740 273,945 305,297 311,875 332,156 ProfitBroughtFwd 46,129 56,662 73,867 105,21 124,797 ProfitinYear 10,533 17,205 31,352 19,578 33,736

Members’shares 200,078 200,078 200,078 187,078 173,623


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Scenario2–minimumraise£130,000

Income(£130Kraise) 2019 2020 2021 2022 2023 £ £ £ £ £

Activitiestrainingandeducation

28,969 21,748 22,041 22,458 22,786

Facilitieshire 8,344 9,178 10,996 18,006 19,236Gardencentrerelated 198,657 208,003 241,024 281,851 308,862Grants&consultancy 70,906 68,973 51,739 26,739 26,739Totalincome 306,876 307,668 325,799 349,053 377,623Note:thereductioninactivities,trainingandeducationturnoverisasaresultofourreduceddependenceongrantfunding.Thecorrespondingexpenditure(includingthepaymentofinterestonsharesanddebt)andtheresultingsurplusisforecastbelow:

Expenditure(£130Kraise) 2019 2020 2021 2022 2023 £ £ £ £ £

CostofSales 101,661 96,123 102,404 124,278 136,706Wages&Salaries 150,141 153,144 156,207 159,331 162,518OtherOverheads 35,949 36,668 37,401 38,149 38,912Depreciation 8,592 17,630 17,630 9,500 9,272Shareinterest(3.5%) 0.00 0.00 0.00 4,550 4,254Totalexpenditure 296,342 303,565 313,643 335,809 351,663

Surplus £10,533 £4,104 £12,157 £13,244 £25,961TheeffectonthebalancesheetofHCGCisforecastbelow:

2019 2020 2021 2022 2023 £ £ £ £ £

FixedAssets 114,906 184,529 166,898 157,398 148,125CurrentAssets 145,950 74,365 91,392 92,993 106,857CurrentLiabilities 24,116 24,300 24,039 23,846 23,723LongTermLiabilities 50,000 43,750 31,250 18,750 6,250Totalnetworth 186,740 190,844 203,001 207,794 225,010ProfitBroughtFwd 46,129 56,662 60,766 72,923 86,166Profitinyear 10,533 £4,104 £12,157 £13,244 £25,961MemberShares 130,078 130,078 130,078 121,628 112,882


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Theshareofferperiod:

Thecommunityshareofferwillopenon1stJuly2019andrununtil31stJuly2019.

Ifwearelookingatbeingjustshortofourtargetattheendoftheofferperiod,wemayextendtheshareofferbyafurtherweekinordertotryandhitthattarget.

Ifweachieveourmaximumtargetbeforetheendoftheofferperiod,wewillclosetheofferearlier.

Wewillnotspendanyofthemoneyraiseduntiltheofferhasclosedandtheshareshavebeenissued.

Thetimeframeforthebuildissubjecttotwodifferentscenarios.PlanningpermissionhasbeenreceivedandthegroundworksforthebuildwillcommenceinSeptember2019.Ifthetargetof£200,000issuccessfulthebuildwilltakeplaceover8months,andbecompletewithanopeningofSpring2020.Ifwereachthelowertargetof£130,000thebuildwilltakeplaceover18months,andbecompleteinSpring2021.Ifanamountbetween£130,000and£200,000israisedtheprojectandprogrammewillbeadjustedaccordingly.

Ifthe£130,000targetisnotreachedallmonieswouldbereturnedandprojecthalteduntilalternativefundingcanbesought.

Minimumandmaximuminvestments:

Asanindividualyoucaninvestbetween£100(100£1shares)andupto10%ofthetotalshareofferraise.Applicationsforlargeramountsmaybecappedinordertokeepthembelowthelevelof10%ofthetotalraise.

Corporateorinstitutionalinvestorscaninvestbetweenaminimumof£1,000andamaximumcalculatedsuchthatthetotalsharesissuedtoinstitutionalinvestorsshallnotexceed50%ofthetotalraise.Thisisbecausewewouldliketoencourageownershipandaccountabilitytothepeopleofourlocalcommunity.

AllinvestorswillbecomemembersofHulmeCommunityGardenCentreLimitedontheissueofshares.

Yourpotentialfinancialreturn:

ShouldHCGCachievetheperformanceweanticipateinourprojections,weintendtopayinterestonthesharesyouhaveinvestedinHulmeCommunityGardenCentreatarateof3.5%fromYear3.Thislevelofinterestissetsoasnottobemorethanisnecessarytoattractandretaintheinvestment.Therateofinterestshouldnotbethemotivationforyoutobuyshares,whichshouldbetosupporttheobjectsofHCGC.

Interestwillbepaidbycreditingtheshareaccountoftheinvestormember.


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Issuingofinterestissubjecttothefinancialperformanceinthepreviousyearasthedirectors’primeresponsibilityistothefinancialsustainabilityofHCGC.

Weaimtoallowsharewithdrawalfromyear3.ThisisconsistentwithourforecastingandbudgetsWehavebudgetedtoallow5%oftheoriginalsharecapital(upto£10,000forthe£200,000targetraise)tobewithdrawneachyear.TheBoardmay,attheirsolediscretion,suspendtherighttowithdraweitherwhollyorpartially,andeitherindefinitelyorforafixedperiod.

Individualcommunityshareholdersandinstitutionalinvestorswillbetreatedexactlythesame:

● Allmemberinvestorswillreceivethesamerateofinterest.

● Whereinterestispaid,itwillonlybecalculatedon£10multiplesofsharesheldbythemember.

TheDirectorsofHCGCwhohavecompiledthiscommunityshareofferwillnotbenefitfromtheirinterestoverandabovethatassociatedwithanysharesthattheypurchaseonthesamebasisasanyotherapplicant,orbyvirtueofbeingacustomerofHCGC.

Afreecopyofthesociety’sannualaccounts,reportsandreturnsforatleastthelastthreeyearscanberequestedbyemailingshares@hulmegardencentre.org.uk

Sharecapital:

Communityshareshavenowbeenusedtofinancecommunityagriculture,communityrenewables,shops,piers,harbours,bakeries.

Upto£200,000valueofshareswillbeissuedinthisshareoffer,eachwithavalueof£1.

Thesesharesarenottransferable–theycannotbesoldortradedtoathirdparty.TheyarehoweverwithdrawableandcanbesoldbacktoHCGC,subjecttotheRulesofHCGC.

Thevalueofthesharescannotincrease,althoughincertaincircumstances,subjecttotheRulesofHCGCtheycanreduceinvalue.

TheRulesofHCGCareavailableonourwebsite.

Opportunitiesforinvolvement:

Investingincommunitysharesisasimple,directandengagingwayofsupportingbusinessesthatserveyourcommunity.Inadditiontotheabove,HCGCoffersongoingopportunitiestovolunteerinthefollowingareas:sitedevelopmentandmaintenance;communitygardenvolunteer;gardencentreassistant;frontofhouseassistant;production/nurseryassistant;Enterpriseassistant;sessionalsupportassistant;andeducationassistant.Giventhecurrentplanspeoplewithpracticalskills,orthedesiretodevelopthem,willbemostwelcomedtogetinvolvedwiththebuildprojectdeliveryprogramme.MembersareessentialtoHCGC’sfuturesuccess,byengagingwithusyouaregivingbacktothecommunity.


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Formoreinformationandcasestudiesaroundcommunityshares,andadditionalguidanceoninvestingincommunityshares,visitthewebsiteoftheCommunitySharesUnit:www.communityshares.org.uk

WehavesecuredthesupportoftheBoosterProgramme,whichisfundedbyPowertoChangeandrunbytheCommunitySharesUnit.Underthisprogrammeupto£100,000isavailabletomatchapplicationsforsharesfromthecommunity.Thismeansthatforeverypoundinvestedbythecommunity,upto£100,000,anotherpoundwillbeinvestedinsharesbytheBoosterProgramme.

ThematchshareswillbeheldbyCo-operativesUK,apartnerintheCommunitySharesUnit,andwillbesubjecttothesametermsandconditionsasotherHulmeCommunityGardenCentreLimitedmembers,exceptforitsrighttowithdrawsharecapital,whichwillberestrictedtoapro-rataamounttothewithdrawalofsharecapitalbyothermembers.

MoreinformationaboutthePowertoChangeBoosterProgrammeisavailableat:https://communitysharesbooster.org.uk/

Yourdemocraticrightsasamember

HulmeCommunityGardenCentreasacharitableCommunityBenefitSocietyisalreadyownedbyandaccountabletoitscommunitymembers.AsaninvestormemberinHCGC,youtoowillbecomeamemberwiththepowertoelecttheBoardofDirectorsofHCGCandholdittoaccount.YouwillalsobeeligibletostandasaBoardMemberyourself.MembershaveonevoteirrespectiveofthenumberofsharestheyhaveinHCGC.

MembersagreetoparticipateingeneralmeetingsandmaintainanactiveinterestintheoperationanddevelopmentofHCGCanditsbusiness.Allmembers(bothindividualandcorporate)haveonevoteirrespectiveofthesizeofshareholding.

Whocanapplyforshares?

MembershipofHulmeCommunityGardenCentreLimitedisopentoanyindividualovertheageof16ororganisationthatsupportstheobjectsofHCGCandholdstheminimumamountofsharesasdefinedbyaparticularshareoffer.Theminimumshareholdinginthisofferis£100.Membershipisalsoopentoorganisations.

WeparticularlyencourageapplicationsfromindividualsandorganisationsfromHulmeandGreaterManchester,butarehappytoacceptapplicationsfromsupportersfurtherafield.

Anapplicationdoesnotguaranteethatshareswillbeissued,oriftheyare,thattheamountofsharesappliedforwillbeissued.TheDirectorsreservetherighttorefuseapplicationsand/orlimittheallocationofshares.


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Otherusefulinformation:

Inadditiontothisshareofferdocument,theRulesofHCGCanditsuptodatebusinessplanareavailableonthewebsite.Whilstyoucaninvestonthebasisoftheinformationinthisdocumentwewouldencourageyoutodownloadandreadthem.

https://hulmegardencentre.org.uk/

Directorsstatement

TheDirectorsundertake:l Nottoexposeapplicantsmoneytosociety'sliabilitiesuntiloffercompleted.l Onlyusesharecapitalforthestatedpurposeandsticktofundraisingtargets.l HonourthecommitmentsundertheCommunitySharesStandardMark.l AbidebythecomplaintsproceduresetoutintheCommunitySharesCodeofPractice.

Howtoapplyforshares

Youcanapplyforsharesusingtheapplicationformbeloworalternatively,youcanapplythroughtheCrowdfunderPlatformhttps://www.crowdfunder.co.uk/hcgc

IfyouusetheCrowdfunderplatformyoucanalsoclaimadditionalincentives:

ToteBag NamelistedonBuilding

3hrFacilitiesHire

1dayFacilitiesHire

CorporateDayfor10people

CorporateDayfor25pluspizzamaking

Individuals £100orover X 500orover X X £1,000orover X X X Organisations £5,000orover X X £10,000orover X X £20,000orover X X


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ShareApplicationForm:

Shareswillbeallocatedonafirstcomefirstservedbasis.SuccessfulapplicantswillreceivesharecertificatesandtheirdetailsandholdingswillberecordedinashareregistertobekeptbytheHCGC.

Ifwedonotreachtheminimumtarget,thefundswillbereturnedtoyou.

IwishtobecomeamemberofHulmeCommunityGardenSocietyLimitedinaccordancewiththeRulesandapplyforcommunitysharestothevalueof:£_____(noteshareswillonlybeissuedinmultiplesof£10)

(PLEASENOTE:Forthisshareoffertheminimumshareholdingforindividualsis£100andthemaximumis£20,000[or10%ofsharesissued]).Theminimumshareholdingforcorporateinvestorsis£1,000.

CONTACTDETAILS(PLEASEUSECAPITALLETTERS)

FIRSTNAMESINFULL:

LASTNAME:

ADDRESS:

POSTCODE:

PHONENO.:

EMAIL:

Ifapplyingonbehalfofanorganisationpleasealsoprovide:

ORGANISATIONNAME:

TYPEOFORGANISATION:

ORGANISATIONADDRESS:

REGISTRATIONNUMBER:

REGISTEREDWITHCOMPANIESHOUSE/FCA/CHARITYCOMMISSION:

YOURPOSITIONWITHINTHEORGANISATION:

(Youmustbeauthorisedtosignonbehalfoftheorganisation.Pleasesupplynotificationofthisappointmentbythegoverningbodywiththisapplicationform)


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AGREEMENT(pleasetick)

[]Ihavereadtheshareofferdocument,includingthefinancialriskfactorsoutlinedonp3.

[]IagreetobeboundbytheTermsandConditionsincludedintheShareOfferDocumentandRulesofHulmeCommunityGardenCentreLimited

[]IunderstandthattheBoardofHulmeCommunityGardenCentreLimitedmayrejectmyapplication,andarenotobligedtotellmewhyithasbeenrejected

[]IconsenttoreceivingformalnoticesbyemailandlinkstoformaldocumentsonHulmeCommunityGardenCentre’swebsite.

TERMS&CONDITIONS

Thedataprovidedbyyouonthisformwillbestoredonanelectronicdatabase.ThisdatawillbeusedforHulmeCommunityGardenCentreLimited’spurposesandwillnotbedisclosedtoanythirdparty.Bybuyingtheseshares,youagreetoalltheinformationdisclosedherebeingheldonacomputerdatabaseincompliancewithEUGeneralDataProtectionRegulations(GDPR).Yourrightsoverthisdatacanbefoundinourprivacynoticeherehttps://hulmegardencentre.org.uk/privacy

ItisaconditionoftheofferthattoensurecompliancewiththeMoneyLaunderingRegulations2003,HulmeCommunityGardenCentreLimitedmayatitsabsolutediscretionrequireverificationofidentityofanypersonseekingtoinvest.

SUBMITTINGYOURAPPLICATIONFORM

Pleasesendyourcompletedapplicationformandpaymentto:


28OldBirleyStreet,Manchester,GreaterManchester,EnglandM155RF,UnitedKingdom

Cheque:makepayabletoHulmeCommunityGardenCentreLimited

AlternativelyBankTransferto:HulmeCommunityGardenCentreLimited

SortCode:089250

AccountNumber:50008353

Important:PleaseusetheApplicantinitialsandpostcodeasthereferenceattachedtothetransfer.


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SIGN__________________________________

DATE__________________________________

Paymentmethod:Cheque(enclosed)◻BankTransfer◻

Contactus

[email protected]

Ourwebsitecanbefoundat:https://hulmegardencentre.org.uk/

Youcanrequestahardcopyoftheapplicationfrombycalling01612278198orwritingtousat:


28OldBirleyStreetManchesterM155RG

hcgc community share offer document 020619 · to encourage healthy living through gardening and...

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