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Wellington Community Pub Wellington, Herefordshire WELLINGTON COMMUNITY PUB WELLINGTON, HEREFORDSHIRE Business Plan July 2021 The Community Wellington Inn (Herefordshire) Limited, A Community Benefit Society The Community Wellington Inn | Business Plan Executive Summary Business Plan for the Purchase and Management of The Wellington Pub Wellington Herefordshire Project Summary Vision The community purchase of the Old Boot • To purchase the freehold of The Pub and to (hereinafter called The Pub) represents a refurbish it as a community-owned asset. tremendous opportunity to retain the only • To set an affordable rent and operate the pub remaining pub in the village and to develop as a Free House. it into a thriving hub for Wellington and the surrounding district. • To agree a lease with a professional and experienced tenant who knows how to The Pub occupies a prominent position on run a successful pub business, and who is the main street in the village and is the last supportive of our ambitions to offer other remaining of four public houses that were once amenities for the community. in the village. It was very successful in the past and drew customers from the village and further • To invest any surplus profits into improving afield. Unfortunately the pub has not done well the pub and additional facilities for the recently and is closed. It was registered as an benefit of the community and Asset of Community Value (ACV) in 2018. The • ideally pay a modest level of interest to all property was put up for sale in January 2021. shareholders The ACV rules mean that the owner of the pub is unable to sell to anyone else within a 6 month moratorium. We intend to make a bid on behalf Legal Structure of the community to purchase the pub. The Community Wellington Inn (Herefordshire) In February 2020 a small group of pub Limited (CWIHL) is a Community Benefit Society enthusiasts decided to try and save the pub. registered with the Financial Conduct Authority In March 2020 the village was consulted with (FCA, Reg no.8641). a flyer being sent to every house in the village. Interested villagers were asked to return a All assets are locked in the CBS and used tear off slip. The response was sufficiently solely for community benefit. The Society and encouraging to pursue the project of buying the its management committee are managed in pub for the community. Regular meetings then accordance with the Plunkett Foundation Model commenced with the pub owner. In August 2020 Rules for Community Ownership Version 5 June a website and a Facebook page were created. 2019. Once the pub was put on the market a formal expression of interest was sent to Herefordshire Management Structure Council. The community was further consulted through a questionnaire, seeking their views At present the management committee is made on what sort of pub they wanted. The results up of 9 Wellington residents (plus an adviser) were analysed and a report of the findings was who will, as obliged under the constitution, stand produced. This exercise also resulted in the down en bloc at the first AGM, when individuals creation of a database of names, email addresses may offer themselves for re-election. and contact details of those who responded to Clear job descriptions are being prepared, with the questionnaire. each committee member having responsibilities Because of Coronavirus it has not been possible for a particular area of the organisation. to hold a physical public meeting, so in April The committee will provide to all members an 2021 a village meeting was held on Zoom. The annual report of activities and finances, and an voting at the meeting resulted in a unanimous annual return will be sent to the FCA. agreement to buy the pub for the community and the election of a team of volunteers to do the work. The Community Wellington Inn | Business Plan Operational Model Risks A tenant will be appointed and be responsible for The risks associated with the project can be split the day-to-day running of the pub. The tenant into the initial purchase stage and the on-going will be accountable to one or two members of business risks. The principal risks are: the committee with whom they will meet on a • Insufficient Project Money. The purchase regular basis. Turnover has been estimated using and refurbishment is dependent upon conservative figures, due to the pub having been sufficient monies being raised by the share closed for over one year. We have started at issue, grant applications, donations and £200,000, rising to £277,200 in year 4. We have loans. forecast that the community benefit society, CWIHL, will be able to generate a profit after • Inadequate Trading Income. The pub may tax from year one and into the future, this is not generate sufficient income to cover estimated at £6,304 in year 1, £10,661 in year 2, costs, pay shareholder interest and further £7,065 in year 3 and rising to £8,492 in year 4. develop the business. A more comprehensive risk analysis is undertaken at section 10. The Market Potential customers include not only the residents of Wellington and surrounding villages, but also visitors, groups and organisations from the nearby towns. The project has received considerable publicity and support from local press and organisations such as CAMRA. Developments The first priority is to purchase the pub, undertake any essential repairs and refurbishment and then open it for business. Monies will be raised by a combination of a community share offer, grants, donations, fundraising and loans. Further refurbishment is dependent upon cost and availability of funds, which will be clearer once the refurbishment plans are known and fully costed. We expect to know the outcome of grant applications in the autumn of 2021. Feasibility studies will be undertaken to determine the viability of certain proposed projects, e.g. provision of low cost lunches for the elderly and isolated. Some additional services, e.g. meeting rooms, will be offered at an early stage with little or no additional cost. The Community Wellington Inn | Business Plan CONTENTS 1. Vision ......................................................................2 8. Finances & Forecasts 8.1 Estimated Purchase Costs & Initial Refurbishment ............................................10 2. Objectives ............................................................3 8.2 Initial Capital Cost Forecast �����������������������������10 8.3 Funding Sources .................................................10 3. Background & Building ...........................3 8.3.1 Grants ...................................................................11 8.4 Financial Predictions ...........................................11 4. Benefits of Purchasing 8.4.1 Predicted Tenant Trading Account ............... 12 .................................................................4 The Pub 8.4.2 Cash Flow Forecast .......................................... 13 8.4.3 Profit & Loss Forecast ������������������������������������� 14 5. Legal, Management & 8.4.4 Other Potential Sources of Income ............. 15 Operational Structure 8.4.5 Shareholders Interest and 5.1 Pub Management Model ��������������������������������������6 share withdrawal .............................................. 15 6. Catchment Area & Support 9. SWOT Analysis ...............................................16 6.1 Local potential .......................................................7 6.2 Visitor potential ....................................................7 10. Risk Analysis ................................................ 18 6.3 Support ...................................................................7 6.4 Competition ...........................................................7 11. Withdrawal of Shares ............................19 6.5 Market Considerations ����������������������������������������8 12. The Management Committee ......... 20 7. Marketing & Communication .............9 13. Committee Profiles ................................. 23 This Share Offer document has been awarded the Community Shares Standard Mark. The Community Shares Standard Mark is awarded by the Community Shares Unit to offers that meet national standards of good practice. For more information about community shares, the Community Shares Standard Mark and the Community Shares Unit go to: www.communityshares.org.uk” 1 The Community Wellington Inn | Business Plan 1 | Vision The vision is to acquire the Pub and run it as a At the public Zoom meeting on 12th April 2021 thriving, profitable village pub, offering a diverse it was unanimously agreed that we should seek range of services to meet the needs of our to buy The Pub, its grounds, gardens and car community. park, from the owner and appoint a professional tenant with the experience and skills to run the This will enable the community to have pub as a profitable and successful business for greater influence over the pub’s functions, the benefit of the community and other users. complementing existing village facilities and maintaining a crucial part of the heritage of our Our objective is to have a friendly and welcoming village. village pub that serves local beers, ciders and sensibly priced, freshly prepared, locally sourced It will further strengthen Wellington’s already food. strong community spirit, provide an opportunity for improved social cohesion and reduce social As support for a community pub has grown, we isolation. can see that the Pub could be more than a pub, and with the agreement of the tenant we propose It will provide a venue for friends and neighbours to introduce
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