Finances and Funding
The sole trading business operated profitably from 2004 to 2017 and the first years trading of the CCBS (2017-18) showed a small net profit which was supported by the grants received during the initial fund raising. This funded the start up costs detailed earlier in this prospectus.
The CCBS has fixed assets including two farm vehicles, one livestock trailer, tools, freezers, two wheel rotavator, poly-tunnel, office and kitchen equipment totalling approximately £20,000. The cattle and sheep are owned by Spencer Christy and loaned to the CCBS who are responsible for all aspects of their management. The Society own the chickens and any future purchases of other livestock.
The day placements program has started to generate income of approximately £6,500 since April 2018. Our original target was much higher than this but setting up took longer than anticipated. Now we are ready to invest in a dedicated member of staff to fully use the resource we have produced. This cross subsidisation is vital for the long term economic stability of the CCBS.
A small farm struggles to make sufficient profit without on farm diversification or off farm income.
In our first year of trading we successfully raised £31,000 in community shares, £55,000 in grants and £33,000 in loans. This enabled the CCBS to start-up the social farming initiative with this period ending in July 2018. This was later than originally envisaged so more of the original funds were required to fund the shortfall in budgeted turnover from day placements.
Our good track record of being awarded grants and loans sets us in good stead for further successful applications in this round of fund raising. We also now have our existing membership base of 140 individuals who will all receive this prospectus. In many ways, existing members are our best advocates for future members. The society is becoming known in the locality and more widely and there is more support for our work now than there was at the time of the initial share offer.
The turnover from sales of vegetables is on target. Meat sales are slightly behind but starting to pick up as a result of the vegetable sales. We are confident that these sales will continue to grow and we shall achieve our turnover targets. Our published year end accounts gives detailed information on the performance to date and the business plan gives financial projections to the end of 2021.
Our environmental, social and educational aims are a good fit with the mission of a number of foundations and grant awarding bodies. The Society’s charitable status assists with funding applications as well as enabling the recovery of gift aid from donations for future projects.
Lauriston Farm generates income from:
• Conservation work
• Sales of farm produce
• Social farming placements
• Educational programmes
Our new Social Farming Initiative, established conservation work, produce sales and educational programs are four income streams with good potential. They support each other through cross subsidisation and enable less dependence on agricultural funding from government. Our market research identified a demand for social farming day placements and there is a lack of supply of such a facility in the Blackwater district.
There is also an increasing interest in local artisan food, high animal welfare standards, chemical free food and food free from any genetically modified feed or seed. On farm education and outdoor education continues to grow in popularity and interest.
The CCBS has fixed assets including two farm vehicles, one livestock trailer, tools, freezers, two wheel rotavator, poly-tunnel, office and kitchen equipment totalling approximately £20,000. The cattle and sheep are owned by Spencer Christy and loaned to the CCBS who are responsible for all aspects of their management. The Society own the chickens and any future purchases of other livestock.
The day placements program has started to generate income of approximately £6,500 since April 2018. Our original target was much higher than this but setting up took longer than anticipated. Now we are ready to invest in a dedicated member of staff to fully use the resource we have produced. This cross subsidisation is vital for the long term economic stability of the CCBS.
A small farm struggles to make sufficient profit without on farm diversification or off farm income.
In our first year of trading we successfully raised £31,000 in community shares, £55,000 in grants and £33,000 in loans. This enabled the CCBS to start-up the social farming initiative with this period ending in July 2018. This was later than originally envisaged so more of the original funds were required to fund the shortfall in budgeted turnover from day placements.
Our good track record of being awarded grants and loans sets us in good stead for further successful applications in this round of fund raising. We also now have our existing membership base of 140 individuals who will all receive this prospectus. In many ways, existing members are our best advocates for future members. The society is becoming known in the locality and more widely and there is more support for our work now than there was at the time of the initial share offer.
The turnover from sales of vegetables is on target. Meat sales are slightly behind but starting to pick up as a result of the vegetable sales. We are confident that these sales will continue to grow and we shall achieve our turnover targets. Our published year end accounts gives detailed information on the performance to date and the business plan gives financial projections to the end of 2021.
Our environmental, social and educational aims are a good fit with the mission of a number of foundations and grant awarding bodies. The Society’s charitable status assists with funding applications as well as enabling the recovery of gift aid from donations for future projects.
Lauriston Farm generates income from:
• Conservation work
• Sales of farm produce
• Social farming placements
• Educational programmes
Our new Social Farming Initiative, established conservation work, produce sales and educational programs are four income streams with good potential. They support each other through cross subsidisation and enable less dependence on agricultural funding from government. Our market research identified a demand for social farming day placements and there is a lack of supply of such a facility in the Blackwater district.
There is also an increasing interest in local artisan food, high animal welfare standards, chemical free food and food free from any genetically modified feed or seed. On farm education and outdoor education continues to grow in popularity and interest.
Five Year Headline Forecasts
Note: The figures for 2017/18 are actual with grants covering the expected deficit as the CCBS starts up. The same is true in 2018/19 but to a lesser extent. A more detailed five year forecast is available in our business plan which can be downloaded on the Share Offer page.
Where the investment is needed
Our funding target of £80,000 will be split between revenue costs and capital costs over the next twelve months. For revenue costs, our aim is to raise £20,800 for the start-up wages for the Day Placements Project Manager. Depending on the individual, this amount can cover up to nine months by which time the day placements will be able to support the individual. In addition, £9,000 is sought for the first year of leasing a new nine person people carrier as the site is remote and the track can be off putting to private car users.
The capital costs cover a static caravan for volunteer/student/apprentice accommodation (£5,000). This is essential for the 2019 growing season as the vegetable plot requires two full time people to manage it. We have the opportunity to use part of an old Dutch barn for vegetable storage and packing of weekly veggie bags. The conditions are ideal as the ambient temperature is cool and there is air movement.
Racking, packing tables and a small refrigerated area are needed (£2,500). This space will also work well as a farm shop £1,000), initially only selling farm produced produce. The vegetables need better water for irrigation so there are plans to harvest rainwater from the cattle shed (£1,500) and also sink a bore hole (£2,000).
Our Berkshire pigs will pioneer a strip grazing approach, sowing the food they need and moving them every day (£2,000).
Doubling the laying hens to forty only needs fencing and the birds themselves (£500).
The major capital investment (£25,000) centres on a new multi-purpose, atrium style function room for over fifty people.
This will enclose the front of the cattle barn and link the existing kitchen with the craft room. It will enable all visitors to eat lunch in the same space and also be a venue that other groups could use for their functions. It will offer wheelchair access throughout.
If all of this is achieved, we can then cultivate a second acre for vegetable growing and erect another poly-tunnel (£8,500).
The capital costs cover a static caravan for volunteer/student/apprentice accommodation (£5,000). This is essential for the 2019 growing season as the vegetable plot requires two full time people to manage it. We have the opportunity to use part of an old Dutch barn for vegetable storage and packing of weekly veggie bags. The conditions are ideal as the ambient temperature is cool and there is air movement.
Racking, packing tables and a small refrigerated area are needed (£2,500). This space will also work well as a farm shop £1,000), initially only selling farm produced produce. The vegetables need better water for irrigation so there are plans to harvest rainwater from the cattle shed (£1,500) and also sink a bore hole (£2,000).
Our Berkshire pigs will pioneer a strip grazing approach, sowing the food they need and moving them every day (£2,000).
Doubling the laying hens to forty only needs fencing and the birds themselves (£500).
The major capital investment (£25,000) centres on a new multi-purpose, atrium style function room for over fifty people.
This will enclose the front of the cattle barn and link the existing kitchen with the craft room. It will enable all visitors to eat lunch in the same space and also be a venue that other groups could use for their functions. It will offer wheelchair access throughout.
If all of this is achieved, we can then cultivate a second acre for vegetable growing and erect another poly-tunnel (£8,500).
