St Michael & All Angels Church Brampton Abbotts, Herefordshire Transformation to Artisan Bakery
BUSINESS PLAN 2017 The Daily Bread
THE PROJECT HISTORY • To transform St Michaels Church Brampton Abbotts (Grade 2* listed) into a Year Events multi-use building to create: 2011 Church closes due to lack of a congregation • An artisan bakery and coffee shop: “The Daily Bread” (“the Business”)
• A community area that can be used by local residents and visitors 2012 Brampton Abbotts Church Regeneration Group (“BACRG”) formed to investigate potential uses for the church, develop support for the project • A place with regular public access for personal meditation and prayer with and promote the regeneration of the village of Brampton Abbotts public worship taking place at least six times a year 2013 Options appraisal led by BACRG setting out a range of uses for the church: • Option 1: Microbrewery • St Michaels has been closed to the public since 2011. The condition of the church is deteriorating. The project will: • Option 2: Artisan bakery • Option 3: Restaurant • Save this medieval church from falling into a non-recoverable state of • Option 4: Events venue disrepair • Option 5: Biomass Facility • Option 6: Accommodation pods • To breathe life into a rural community by creating a hub to the village 2015 Two consultation events held with key stakeholders (the local community, Diocese of Hereford, the Church Commissioners, The Churches Conservation Trust) which result in Artisan Bakery being selected 2015 Business plan and financial model developed by BACRG
2016 Circa £250k funding secured from Heritage Lottery
2016 RRA architects appointed and project planning initiated
THE DAILY BREAD 2 The Daily Bread
OBJECTIVES Church objectives
Commercial Objectives • Access will be available for members of the public to the chancel for prayer and contemplation • The key objective is to create a viable space that can be used by businesses who will pay rent to BACRG. BACRG will use this income to maintain the • The church will hold at least six services a year, and these will be planned in church, thus saving this valuable medieval building advance and consented by the incumbent and the Bishop
• Any surplus income that BACRG receives will be used for community events • Design should allow for use of the community as well as the commercial and initiatives enterprise
The main business that will use the space is an artisan wholesale bakery: Community Objectives The Daily Bread. The church renovation must therefore be able to be used to: • To provide a much needed hub for the village and surrounding area • To enable a staff of circa 5 operate the bakery on full and/ or part time basis • To host coffee mornings and evening events i.e. pizza evenings that could • The bakery is predominantly wholesale i.e. delivering finished goods to potentially by paired up with music/ cultural events local businesses, plus a retail element of a coffee shop for community events and for customers to use when collecting their bread/ cakes and to attract tourists/ walkers to the church • To be play a role within the wider community by (for example) working with local schools to run baking sessions, to act as a hub for artisan, food-based • To enable the bakery to run baking courses of up to 10 delegates markets, to promote the region’s reputation for quality food and drink • To be able to seat up to 30 in the coffee shop • That the bakery can be used for wider commercial kitchen uses i.e. • To save an important and much loved building pop-up restaurant • To provide a venue that could be used for regional events and festivals such as the Borderline Film Festival and h.Art (Herefordshire Art) week
THE DAILY BREAD 3 The Daily Bread
CORPORATE STRUCTURE
BACRG
• BACRG is a Community Interest Company. It is limited by guarantee
• The directors of BACRG are all local residents – summary biographies are
overleaf initiatives
• BACRG’s objectives are to generate income which will be used to preserve
and maintain the church and to create a social hub for the village. BACRG’s building usedfor All profit Articles of Association state: ‘The Company is not established or conducted community and maintenance for private gain: any surplus or assets are used principally for the benefit of the community.’ for Lease bakery & option for
• Income will be generated through leasing the church to businesses. It is BACRG other businesses envisaged that the anchor tenant will be the company that runs the bakery, but BACRG will retain the option to rent space to other businesses on a flexible basis i.e. ‘pop-up’ restaurants, food/ drink/ craft retailers etc.
• BACRG is effectively, therefore, a landlord that will lease the church to businesses that are viable and that meet the social and operating
Optional: other BACRG for Income requirements of BACRG (see later in this document) Anchor Tenant – businesses renting The Daily Bread on flexible basis
THE DAILY BREAD 4 The Daily Bread
BACRG DIRECTORS
Who is responsible for the running of BACRG?
• The directors are local residents who have a vested interest in saving the church and making the project a success. They are summarised below:
Stuart Fraser Jo Pilkington Tom McCarthy Janet Fraser Oliver Marshall Sue Marshall
• Founder and owner of • Founder and co-owner • Director and co-owner • Janet is retired and • Director and co-owner • Founder and co-owner Avail Vehicle Contracts of Mad Dogs & Vintage of Odyssey Corporate was previously of the Woodlands of the Woodlands Ltd, a vehicle leasing Vans, a glamping site Finance registrar of births, Nursery Group Nursery Group business based in Brampton • Tom advises on marriages and deaths • Oli is responsible for • Sue founded this • Stuart has run the Abbots mergers, acquisitions, for the local area the running of the successful childcare business for 40 years, • Jo leads the business management buy-outs • Janet’s expertise is in group’s nurseries with business over 30 years leading a team of up to with a particular and fundraising information a particular focus on ago and has been 35 people strength in marketing • Tom’s skills include management and building development responsible form • Stuart has strong and public relations financial modelling, accounts and project making it the leading leadership and sales structuring and management independent nursery experience negotiating deals business in Herefordshire
Combined expertise in: strategy, sales, marketing, finance, project management, property, negotiation and purchasing built over years of running successful businesses
THE DAILY BREAD 5 The Daily Bread
OWNERSHIP How will the Owners of The Daily Bread be identified? (continued)
Who will run The Daily Bread? • BACRG will provide information packs to interested parties summarising the opportunity including: • The Daily Bread will be owned and operated by a third party: BACRG • Details on the local area envisage a single entrepreneur or group of entrepreneurs running the • Financial commitments including rent Business • Key ‘Code of Conduct’ of operation i.e. to comply with low noise/ • It is envisaged that The Daily Bread will be a limited company although disruption to the village and that usage of the building is sympathetic other trading entities will be considered to its historical and cultural importance
How will the Owners of The Daily Bread be identified? • Based on the above, BACRG will request initial plans and financial details from interested applicants • BACRG will run a national tender with the winning bidder being selected to run The Daily Bread (“the Owner”) • A shortlist of applicants will be made by BACRG and the successful shortlist will be interviewed by the BACRG committee • The artisan bread community is strong with good communication, particularly through social media. Key organisations such as the • A winner will be selected www.realbreadcampaign.org will be used to market the opportunity to run The Daily Bread • Heads of Terms will be agreed between BACRG and the winning applicant with full legal documentation to be agreed between the parties before the • Local and national press will also be contacted to help generate interest in winning applicant takes over the running of the Business the project • It is envisaged that the winning applicant will initially take ownership of The Daily Bread for a 3 year period with an opportunity to extend the agreement at the end of this period subject to agreement between the parties
THE DAILY BREAD 6 The Daily Bread
FUNDING
• The project to transform St Michaels is subject to securing grant funding
• BACRG have applied for initial funding through the Heritage Lottery Fund Grants for Places of Worship (“G-Pow”) scheme: https://www.hlf.org.uk/looking- funding/our-grant-programmes/grants-places-worship-england
• There are two elements to the project which are summarised in the table, below:
Project Name Notes Estimated Budget Status
Structural Repairs To make the church £262k Initial approval with further assessments to be structurally sound made through 2017 The Daily Bread To transform the ‘shell’ of BACRG aim to raise circa £300k through further BACRG to raise funds following on from expected the church into The Daily funding applications positive response to the G-Pow application Bread
THE DAILY BREAD 7 The Daily Bread
INITIAL DESIGNS
• Based on the initial assessment and planning by RRA Architects, BACRG are proceeding on the basis of the designs, right and below:
• The bakery will be placed at the Western end of the nave along with storage accessed via steps to mezzanine level
• A presentation/ display area will be in front of the baking area. This will be used for displaying retail items and for demonstrations during baking courses
• The remainder of the nave will be for mixed use: seating for the café when the bakery hosts coffee mornings/ evening events, space for worship/ seminars/ community events
• The Chancel at the Eastern end of the church will be used for occasional worship
• The Vestry will house the toilets with additional seating space
THE DAILY BREAD 8 The Daily Bread
INITIAL DESIGNS
• The diagram, right, summarises the intended usage of the church and surrounding grounds
• The car park is owned by the Herefordshire Diocese. This area is critical to the success of The Daily Bread for both logistics purpose (goods in/ goods out) and for occasional use for revenue generating exercises such as food / craft markets
• BACRG are working with the Diocese to agree the transfer of ownership of the car park to BACRG so that it can be included in The Daily Bread project
THE DAILY BREAD 9 The Daily Bread
The Market
Nationally Craft Bakery Association Locally • There are circa 23,500 residents in the Ross-on-Wye locality UK Forecast sales for 2014-2019: • The table below shows the number of businesses with local primary trading addresses that are potential customers of The Daily Bread Artisanal bread: £683- (Source: FAME database, Bureau van Dijk using UK SIC Codes to identify £781m the chosen sectors) Artisanal cakes: £786m - £823m Herefordshire Worcestershire Gloucestershire Monmouthshire Artisanal pastries: £179m - £205m Bread & Cake Retailers 10 16 29 3 Circa 4,500 craft bakeries Accommodation * 90 162 235 26 nationwide Pubs 71 197 217 39 Between 2009 and 2013, Restaurants 102 428 522 76 more than 10,000 children in over 120 273 803 1003 144 schools in England learned to bake thanks to • Accommodation includes Hotels, Holiday & Other Short Stay the Real Bread’s businesses, Camping Sites and Other Accommodation as defined by UK Campaign's Lessons in SIC Codes Loaf™
THE DAILY BREAD 10 The Daily Bread
The Market
• In addition to the businesses listed on the previous page, there are regular farmers’ markets, with Herefordshire’s Location Frequency Locally events listed in the table, right: Hereford Weekly on a Thursday, monthly on 1st Saturday • Ledbury Food Group, a local organization that ‘helps you Ross-on-Wye Monthly discover the local ‘heroes’ who produce our food’, identify 15 bakers across Herefordshire as shown in the diagram, below Leominster Monthly right Belmont Monthly • The businesses are small scale independents with just one based within 5 miles of Brampton Abbotts Ledbury Monthly
• Details of the individual bakers can be seen at: http://www.ledburyfoodgroup.org/bakers-baked-goods/
• Based on the above research, BACRG believe that the local businesses and residents provide ample opportunity to create a successful, thriving artisan bakery
THE DAILY BREAD 11 The Daily Bread
Risks
• The table below summarises the key risks to the Project along with mitigation of those risks:
Risk Mitigation The Daily Bread Fails • A rigorous selection process will be used to try to ensure that only top quality candidates are granted the opportunity to run The Daily Bread • Food, drink and hospitality are a key part of Herefordshire’s economy. There are a large number of customers for the owners of The Daily Bread to target with few artisan bakeries in the immediate region • The Daily Bread is assumed to be the anchor tenant but the lease agreement will be drafted so that BACRG has the right to rent the space to other businesses when not being used by The Daily Bread • If the Business does fail, the pod design ensures that the church can be used for other uses which widens the market for new tenants Disruption to Brampton Abbotts • The Daily Bread is not a large-scale business. Traffic in the village is envisaged to be impacted but only to the extent of additional Transit/ Sprinter type vans using the roads, not articulated lorries. The vans used will be significantly smaller than the farm machinery that currently uses the roads around Brampton Abbotts • BACRG will work with the wider community to define a Code of Conduct (including, for example, noise levels, environmental practice, hours of operation etc.) which will be a key part of the legal agreement between BACRG and the tenants. Drafting will be such that tenants will face penalties and ultimately termination of the lease if they do not comply with the Code of Conduct. No suitable Owners are found to run The • The space is deliberately designed to be multi-purpose. Alternative uses will be proposed, thus widening the pool Daily Bread for potential candidates/ types of business The church is not structurally viable • BACRG have taken professional advice from RRA and are undertaking all of the necessary surveys and assessments
THE DAILY BREAD 12 The Daily Bread
REQUIREMENTS
The Bakery Items • The Bakery will be fitted out as part of the internal works of The Daily Bread Mixer Coffee Machine project. The fit out will include items, as listed in the Appendices: Architect’s Summary, so that the space can be used for commercial baking and cooking Ovens Small items
• The owners of The Daily Bread will be required to purchase their own Provers Contingency specific baking machinery. We assume that the items listed in the table, right, will be required. These items are included in The Daily Bread financial model later in this document • The estimated cost of the items above is circa £25k and is excluded from the total • As with the overall design, a key element is flexibility: it is intended that fundraise package the bakery will be the main user of the space but care must be taken to ensure that: • Contingency costs are built into the financial model summarised later in this document
• If the Bakery were to fail that the equipment provided can be used for other food-based businesses • That if the Bakery tenant does not want to renew at the end of the lease, and a suitable successor cannot be found that the equipment provided can be used for other food-based businesses • That the space can be used for other food-based businesses during the tenure of anchor tenant. This will enable the church to be used for other revenue generating projects which could include: pizza evenings, pop-up restaurants, films or concerts
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FINANCIALS Summary of the BACRG Financial Model (continued) • It is assumed that the Owner of The Daily Bread will work in the Business Summary of the BACRG Financial Model and will initially employ one other person
• BACRG’s responsibility is to ensure that the church is maintained and • The investment that the Owner will need to make is in funding the preserved operation of the Business in its early phase in terms of acquiring the necessary equipment and providing working capital • As such, BACRG aims to create a workspace that allows entrepreneurs to • The financial model assumes that the Owner will invest £25k into the run a commercially viable business which will pay rent to BACRG business and will secure hire purchase facilities for the necessary equipment • BACRG have produced a financial model which assesses the: • These funds will be used to pay trade creditors, salaries and taxes until the • Potential revenues and type of revenues Business itself is cash generative
• Forecast costs, both direct and indirect • The model assumes three main forms of revenue:
• Ongoing capital expenditure • Bread sales based on a wholesale model
• It should be noted that BACRG is not responsible for how the Owners of • Bread making courses The Daily Bread (or additional tenants) will run their business, nor is it responsible for the success of failure of the business • Events
• • Cost of Sales has been assumed at 15% based on comparative research of The forecasts summarised in pages 15 & 16 of this document are therefore other small scale bakeries indicative only and should not be interpreted as being the definitive forecasts or performance of The Daily Bread • Rent payable to BACRG is assumed to be £12k per annum for the first three years
THE DAILY BREAD 14 The Daily Bread
Summary of the BACRG Financial Profit and Loss Year 1 Year 2 Year 3 Wholesale Retail Courses £ £ £ Model (continued) Revenue Sales 83,100 126,911 156,814 • The tables, right, summarise the Balance Sheet Year 1 Year 2 Year 3 Profit and Loss and Balance Sheet 83,100 126,911 156,814 £ £ £ for the first three years of trading Cost of sales Fixed assets along with a breakdown of revenue Gross purchases 12,153 17,734 22,224 15,120 Tangible fixed assets 21,363 17,425 13,188 streams Current assets Gross profit 70,947 109,177 134,590 Trade debtors 7,524 7,926 10,159 Cash at bank 4,503 17,512 41,841 85% 86% 86% • The figures used as assumptions i.e. Overheads 12,027 25,438 52,000 Current liabilities Wages 36,000 46,350 57,289 insurance, IT expenses etc. are 14,280 40,102 Trade creditors 5,631 5,871 6,543 indicative: it will be the Rent 12,000 12,000 12,000 PAYE/NIC 900 1,159 1,432 responsibility of the Daily Bread’s Rates 6,000 6,000 6,000 VAT 2,451 2,884 3,663 Owner to create their own business Utilities 5,000 5,150 5,305 Corporation tax (2,459) (122) 4,115 6,523 9,792 15,752 plan and to manage the finances of Insurance 1,500 1,545 1,591 33,372 Maintenance (Machinery) 1,000 1,030 1,061 Net current assets 5,504 15,646 36,248 the Business Telephone 500 515 530
IT Expenses 750 773 796 4,500 Total assets less current liabilities 26,866 33,071 49,435 • Rent is assumed to be £12k per Distribution 5,000 6,750 8,400 Marketing 5,000 5,150 5,305 21,600 Long term liabilities annum for the first three year: this Hire Purchase 13,000 9,750 6,500 is sufficient to provide BACRG with Accountancy 1,000 1,030 1,061 Sundry expenses 5,000 5,150 5,305 13,000 9,750 6,500 funds (plus a surplus) to meet its Depreciation 5,138 5,438 5,738 101,59 maintenance & repair obligations 2 Net assets 13,866 23,321 42,935 78,750 91,443 104,641 79,259 Capital and reserves • No dividends are assumed in the Ordinary Shares 25,000 25,000 25,000 first three years but, again, this will EBT (7,803) 17,734 29,948 57,000 Profit and loss account (11,134) (1,679) 17,935 -9% 14% 19% be the decision of the Owner. The Shareholders' funds 13,866 23,321 42,935 financial model indicates that there HP Interest 652 506 360 would be surplus cash available for dividend payments Dividends - - - Corporation Tax 2,459 (2,336) (4,237) Y E A R 1 Y E A R 2 Y E A R 3
Post Tax Profits (4,692) 15,904 26,071
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Summary of the BACRG Financial Model (continued) Summary of the BACRG Financial Model (continued) • Cashflow is summarised in the chart below. The cash balance is at its lowest point is June 2020 – assuming a January 2020 start to the Business • Cashflow could be eased by a number of measures: • The cash balance is prior to any dividend that the Owner may choose to make • It is assumed that the Owner will pay themselves an £18k per annum salary Monthly Closing Cash Forecast and that they will draw this from the start of trading. It could be that the 50,000 Owner delays these payments initially 45,000 and then makes catch up payments 40,000 • BACRG could allow a rent holiday 35,000 during the initial phases of the Business’ development 30,000 25,000 • An additional member of staff is assumed to be employed from the 20,000 start of the Business: this position 15,000 could be phased in at a later date 10,000 • Assuming that the Business generates 5,000 good quality wholesale customers, the - Owner could secure invoice Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov discounting to assist with cashflow 2020 2020 2020 2020 2020 2020 2021 2021 2021 2021 2021 2021 2022 2022 2022 2022 2022 2022
THE DAILY BREAD 16 The Daily Bread APPENDICES
Architect’s Costings Summary £ £ 300,000.00 Contract Value 100% £ / sqm Rates £ £ 300,000.00 Contract Value 100% £ / sqm Rates 1 Enabling Works 7 External Works Opening up and removal £ 1,000.00 item Signage £ 750.00 item Scaffold hoarding £ 3,000.00 item Footway lighting £ 2,500.00 item Clearance of debris £ 500.00 item Landscaping £ 4,500.00 item Temporary works onsite £ 500.00 item Carpark surface and marking £ 30,000.00 item Enabling Sub Total £ 5,000.00 Sewer connections £ 6,500.00 item 2 Sub Structural BWCW £ 4,500.00 10% Archaeology £ 3,500.00 item External Works Sub Total £ 48,750.00 Services Trenches £ 5,500.00 item 8 Prelims Overheads £ 30,000.00 10.0% Foundations / lintels £ 2,500.00 item BWCW £ 1,150.00 10% 9 Sub Total 1 to 9 £ 223,340.00 Structure Sub Total £ 12,650.00 3 Super Structure 10 Fees / All Consultants £ 32,700.00 Architect, Struct.Eng, QS Structural Framing £ 11,000.00 £ 45.00 Ceiling structure £ 2,500.00 £ 45.00 11 Sub Total 9 to 10 £ 256,040.00 Floor structure £ 6,500.00 £ 65.00 Internal walls / Doors £ 1,400.00 item 12 VAT £ 51,208.00 20% Staircase £ 4,500.00 item External Doors / Gates £ 1,500.00 item 13 Project Total £ 307,248.00 BWCW £ 2,740.00 10% Structure Sub Total £ 30,140.00 14 Quinnquennial Works £ 262,000.00 Grant Funding 4 Internal Finishes Wall finishes £ 23,000.00 £ 350.00 15 Grand Total £ 569,248.00 Floor Finishes £ 8,500.00 £ 85.00 Ceiling Finishes £ 1,000.00 £ 65.00 Trims and edgings £ 1,500.00 item BWCW £ 3,400.00 10% Finishes Sub Total £ 37,400.00 5 Fittings & Furnishings Ironmongery £ 750.00 item Light fittings £ 3,500.00 item Bakery fitout £ 10,000.00 item Alarm / door counter system £ 2,000.00 item WC sanitary access pack £ 3,000.00 item Signage £ 750.00 item Furniture £ 8,000.00 item BWCW £ 2,800.00 10% Fittings Sub Total £ 30,800.00 6 Services M&E £ 7,500.00 item Plumbing £ 2,500.00 item Underfloor Heating £ 4,500.00 item Trading Services Systems £ 1,500.00 item Utilities connections £ 6,500.00 item Gas boiler £ 3,500.00 item BWCW £ 2,600.00 10% Services Sub Total £ 28,600.00
THE DAILY BREAD 17 The Daily Bread APPENDICES
BACRG Financial Summary
• The table below summarises BACRG’s forecast maintenance costs as provided by RRA
Long Term Maintenance Forecast Frequency Annual Cost Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20
Repair Item Roof, Tile & Wall Maintenance Annually 2,000 2,000 2,060 2,122 2,185 2,251 2,319 2,388 2,460 2,534 2,610 2,688 2,768 2,852 2,937 3,025 3,116 3,209 3,306 3,405 3,507 Fire Extinguishers Annually 300 300 309 318 328 338 348 358 369 380 391 403 415 428 441 454 467 481 496 511 526 Weathervane Maintenance Every 7 Years 3,000 ------3,690 ------4,674 - - - - Rainwater Goods Every 7 Years 2,500 ------3,075 ------3,895 - - - - Window Frames Every 5 Years 800 - - - - - 927 - - - - - 1,107 - - - - - 1,322 - - Door Maintenance Every 5 Years 1,500 - - - - - 1,739 - - - - - 2,076 - - - - - 2,479 - - Window Cleaining Every 2 Years 150 - 155 - 164 - 174 - 184 196 208 220 234 - 248 - 263 Internal Painting Every 5 Years 15,000 - - - - - 17,389 - - - - - 20,764 - - - - - 24,793 - - Electrical Works Every 5 Years 1,000 - - - - - 1,159 - - - - - 1,384 - - - - - 1,653 - - Total 2,300 2,524 2,440 2,677 2,589 24,055 2,746 9,777 2,914 3,197 3,091 28,723 3,279 3,598 3,479 12,386 3,691 34,297 3,916 4,296
• The costs above are based on current estimates but with an annual inflation increase of 3% per annum
THE DAILY BREAD 18 The Daily Bread APPENDICES
BACRG Financial Summary
• Based RRA’s maintenance forecast and BACRG’s rental income forecast, BARCG’s cashflow summary is a per the table and chart below. Rent is assumed to increase by £500 every three years
Cashflow Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20
Receipts 13,000 13,000 13,000 13,500 13,500 13,500 14,000 14,000 14,000 14,500 14,500 14,500 15,000 15,000 15,000 15,500 15,500 15,500 16,000 16,000
Payments Suppliers 3,250 3,502 3,448 3,715 3,658 25,156 3,881 10,946 4,117 4,436 4,368 30,038 4,634 4,993 4,916 13,866 5,215 35,867 5,533 5,962 VAT 650 700 1,690 743 732 6,031 776 2,189 1,823 887 874 7,008 927 999 1,983 2,773 1,043 8,173 1,107 1,192 VAT Recovery - (650) (700) (1,690) (743) (732) (6,031) (776) (2,189) (1,823) (887) (874) (7,008) (927) (999) (1,983) (2,773) (1,043) (8,173) (1,107) Capital expenditure - - 5,000 - - 5,000 - - 5,000 - - 5,000 - - 5,000 - - 5,000 - - Corporation Tax - 1,321 1,456 1,455 1,561 1,667 1,621 1,710 1,724 1,807 1,885 1,369 1,270 1,336 1,407 1,470 1,472 1,533 1,385 1,435
Cash inflow/(outflow) 9,100 8,126 2,107 9,276 8,293 (23,623) 13,754 (69) 3,525 9,193 8,261 (28,040) 15,177 8,599 2,692 (626) 10,543 (34,030) 16,149 8,517
Opening bank 6 9,106 17,232 19,339 28,615 36,908 13,285 27,039 26,970 30,495 39,687 47,948 19,907 35,084 43,683 46,376 45,749 56,292 22,262 38,411
Closing bank 9,106 17,232 19,339 28,615 36,908 13,285 27,039 26,970 30,495 39,687 47,948 19,907 35,084 43,683 46,376 45,749 56,292 22,262 38,411 46,929
• As per the table above, BACRG assumes that it will need to replace fixtures and fittings valued at £5k every third year (see Capital Expenditure) in addition to the repairs and maintenance
• Cash builds steadily in the first five years of trading. Year 6 is the first of the ‘cyclical’ repairs work programmes with circa £24k in total being spent on repairs and maintenance in that year
• The most significant expenditure in Year 6 relates to Internal Painting at circa £17k
THE DAILY BREAD 19 The Daily Bread APPENDICES
BACRG Financial Summary Profit & Loss Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20
Income • The long term Profit and Loss and Balance The Daily Bread 12,000 12,000 12,000 12,500 12,500 12,500 13,000 13,000 13,000 13,500 13,500 13,500 14,000 14,000 14,000 14,500 14,500 14,500 15,000 15,000 Others 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 Sheet are summarised in the tables, right Total Income 13,000 13,000 13,000 13,500 13,500 13,500 14,000 14,000 14,000 14,500 14,500 14,500 15,000 15,000 15,000 15,500 15,500 15,500 16,000 16,000
Repairs & Maintenance 5,096 5,096 5,100 5,100 5,105 5,929 5,934 6,383 6,388 6,388 6,394 7,377 7,384 7,384 7,390 7,717 7,724 8,898 8,906 8,906 Light & Heat 200 206 212 219 225 232 239 246 253 261 269 277 285 294 303 312 321 331 340 351 • Rent is assumed to increase £500 every third Accountancy & Professional 750 773 796 820 844 869 896 922 950 979 1,008 1,038 1,069 1,101 1,134 1,168 1,204 1,240 1,277 1,315 Grant Income - Property (7,965) (7,965) (7,965) (7,965) (7,965) (7,965) (7,965) (7,965) (7,965) (7,965) (7,965) (7,965) (7,965) (7,965) (7,965) (7,965) (7,965) (7,965) (7,965) (7,965) year Grant Income - Plant (3,405) (3,405) (3,405) (3,405) (3,405) (3,405) (3,405) (3,405) (3,405) (3,405) ------Depreciation 11,370 10,631 9,946 9,811 9,171 8,578 8,529 7,969 7,450 7,469 6,973 6,514 6,589 6,146 5,735 5,856 5,455 5,085 5,243 4,877 • Repairs & Maintenance costs are accrued to EBT 6,954 7,665 8,315 8,920 9,524 9,261 9,772 9,850 10,328 10,773 7,820 7,258 7,637 8,040 8,402 8,411 8,761 7,912 8,199 8,516 even out the peaks and troughs of the cyclical Tax 1,321 1,456 1,455 1,561 1,667 1,621 1,710 1,724 1,807 1,885 1,369 1,270 1,336 1,407 1,470 1,472 1,533 1,385 1,435 1,490 repair programme Post Tax Profits 5,633 6,208 6,860 7,359 7,857 7,640 8,062 8,126 8,521 8,887 6,452 5,988 6,301 6,633 6,931 6,939 7,228 6,527 6,764 7,026
• Income from other sources (i.e. community Balance Sheet Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20
events/ pop-up space rental) is assumed to be Fixed Assets £1k per annum Fixed Asset Value Property 30,645 27,581 29,822 26,840 24,156 26,741 24,067 21,660 24,494 22,044 19,840 22,856 20,570 18,513 21,662 19,496 17,546 20,792 18,712 16,841 Fixed Asset Value Plant & Equipment 151,326 143,759 136,571 129,743 123,256 117,093 111,238 105,676 100,392 95,373 90,604 86,074 81,770 77,682 73,798 70,108 66,602 63,272 60,109 57,103 181,971 171,340 166,394 156,583 147,412 143,833 135,305 127,336 124,886 117,417 110,444 108,930 102,341 96,195 95,460 89,604 84,149 84,064 78,821 73,944 • Light and Heat costs relate purely to light and Current Assets Trade Debtors ------heat used outside of baking hours i.e. either Grant - Property 159,290 159,290 159,290 159,290 159,290 159,290 159,290 159,290 159,290 159,290 159,290 159,290 159,290 159,290 159,290 159,290 159,290 159,290 159,290 159,290 Grant - Plant 34,050 34,050 34,050 34,050 34,050 34,050 34,050 34,050 34,050 34,050 34,050 34,050 34,050 34,050 34,050 34,050 34,050 34,050 34,050 34,050 during church services or community events Cash 9,106 17,232 19,339 28,615 36,908 13,285 27,039 26,970 30,495 39,687 47,948 19,907 35,084 43,683 46,376 45,749 56,292 22,262 38,411 46,929
Current Liabilities Trade Creditors ------• Other costs relating to community events will VAT (650) (700) (1,690) (743) (732) (6,031) (776) (2,189) (1,823) (887) (874) (7,008) (927) (999) (1,983) (2,773) (1,043) (8,173) (1,107) (1,192) Deferred Income - Property 151,326 143,361 135,397 127,432 119,468 111,503 103,539 95,574 87,610 79,645 71,681 63,716 55,752 47,787 39,823 31,858 23,894 15,929 7,965 - be borne by those attending the events i.e. Deferred Income - Plant 30,645 27,240 23,835 20,430 17,025 13,620 10,215 6,810 3,405 ------they should be break-even resulting in a cost Accruals 2,796 5,368 8,028 10,451 12,968 (5,158) (1,970) (5,365) (1,890) 1,301 4,604 (16,741) (12,637) (8,851) (4,940) (9,608) (5,575) (30,974) (25,984) (21,374) neutral result for BACRG Corporation tax 1,321 1,456 1,455 1,561 1,667 1,621 1,710 1,724 1,807 1,885 1,369 1,270 1,336 1,407 1,470 1,472 1,533 1,385 1,435 1,490 Net Current Assets 17,008 33,848 45,654 62,824 79,852 91,071 107,661 123,756 134,727 151,083 164,508 172,010 184,900 197,679 205,345 218,141 230,824 237,436 249,442 261,345 • Trade debtors and creditors are assumed to be Net Assets 198,979 205,187 212,047 219,406 227,264 234,904 242,966 251,092 259,613 268,500 274,952 280,940 287,241 293,874 300,805 307,745 314,972 321,499 328,264 335,290 Capital and reserves nil at year end although this will vary Ordinary Shares 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 Revaluation Reserve 193,340 193,340 193,340 193,340 193,340 193,340 193,340 193,340 193,340 193,340 193,340 193,340 193,340 193,340 193,340 193,340 193,340 193,340 193,340 193,340 depending on the timing of repair works and Profit and loss account 5,633 11,841 18,701 26,060 33,918 41,558 49,620 57,746 66,267 75,154 81,606 87,594 93,895 100,528 107,459 114,399 121,626 128,153 134,918 141,944 rent payments. In both cases, the sums will not make a material difference to the main Shareholders' funds 198,979 205,187 212,047 219,406 227,264 234,904 242,966 251,092 259,613 268,500 274,952 280,940 287,241 293,874 300,805 307,745 314,972 321,499 328,264 335,290 point of focus – cash generation
THE DAILY BREAD 20