Torrs Hydro Business Development Plan 2020.Docx
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Business Development Plan Torrs Hydro New Mills December 2020 Business Development Plan Torrs Hydro New Mills Torrs Hydro Business Development Plan December 2020 Contents 1 Executive Summary 2 2 Origins, Vision and Purpose 3 3 The Organisation 4 4 Our Activities and Track Record 7 5 Operations 9 6 The Current Project 9 7 Financial details and Forecasts 11 8 Risks and Risk Mitigation 16 December 2020 Page 1 Business Development Plan Torrs Hydro New Mills 1. Executive Summary This business development plan provides information about Torrs Hydro New Mills Ltd (Torrs Hydro), and the business and community benefit cases for an upgrade to the micro-hydro plant owned by Torrs Hydro. Torrs Hydro, a 230-strong member-led Community Benefit Society, was founded in 2007, and has been generating renewable energy via a micro-hydro plant on the River Goyt at New Mills since 2008. It aims to provide community, environmental and educational benefit, including through a Community Fund to support local community development. We have the opportunity to upgrade the plant to significantly increase its productivity. At the time of writing, the upgrade is under way and has been funded through the society’s reserves, grants and loans, including a private loan from two Torrs Hydro members. We now wish to raise Community Share capital in order to repay the loan finance, to attract new members, and to enhance the amount that can be invested into the Torrs Hydro Community Fund. We are looking to raise £25,000-£28,644 of Community Share Capital. £25,000 of investment would repay the private loan, and £28,644 would enable us to repay both this and other loan finance. Torrs Hydro has previous experience of successfully attracting £126,000 of Community Share capital. Shares cost £1 each, and applicants are invited to purchase one or more bundles of 250 shares. Investors will receive an interest payment of up to 2% per year. Other surplus income from the proceeds of the power generation will contribute to the Community Fund. December 2020 Page 2 Business Development Plan Torrs Hydro New Mills 2.Our Origins, Vision & Purpose Torrs Hydro New Mills Ltd is a Community Benefit Society, owned and led by its members. It was established in 2007 by a small group of people keen to address environmental and sustainability issues who saw an opportunity in New Mills to develop renewable energy generation. Back in 2007 there was relatively little awareness or experience of small scale renewable energy schemes, and this pioneering project attracted a good deal of interest. Capital funding was required for the project, and local people said they were prepared to invest but were clear that the project had to be owned by its community of investors and benefit the local community. An appropriate legal structure was sought. Although not widely known at the time, under Industrial and Provident Society law a Community Benefit Society can issue ‘withdrawable’ shares that can be offered without the costly legal procedures required for transferable shares. Under this legal form members each have an equal voice regardless of the size of their shareholding, which also appealed to the founders. In coming together to work collaboratively, the founders aspired to an organisation that would, on a small scale, address renewable energy and climate change and energy security issues. They wanted to demonstrate what communities can do by coming together to act collectively; to pilot and demonstrate small scale renewable technology as well as a little known means of raising capital funding and community ownership; and to test market interest in small scale philanthropic investment for social/community purposes rather than purely personal benefit. They also wanted to stimulate community and environmental regeneration by providing educational opportunities and a community fund. New Mills is a small market town with a population of around 10,000 in the High Peak district of Derbyshire. It is situated on the western edge of the Peak District National Park, at the confluence of the rivers Sett and Goyt. These rivers, flowing from Kinder Scout and the hills above the town of Buxton, respectively, meet in a gorge known as the Torrs beneath the town, and provided the power for the town’s main industries in the 18 th and 19 th centuries. One mill building and the remains of several others and some of the mill workers’ cottages can still be seen alongside the rivers and, criti cally, several weirs remain. Of these, the top-most was considered to provide th e optimum site for a low-head hydro scheme. December 2020 Page 3 Business Development Plan Torrs Hydro New Mills 3.The Organisation 3.1. Structure and governance Torrs Hydro New Mills Ltd was established in 2007 as a community benefit society under the Industrial and Provident Societies Act 1965, using model rules provided by Wessex Reinvestment Trust. The Cooperative and Community Benefit Societies Act of 2014 superseded the 1965 act, and Torrs Hydro now enjoys the status of a Community Benefit Society. Along with all other such societies, it is registered with and regulated by the Financial Conduct Authority, rather than Companies House. The main objectives of Torrs Hydro are to: ● Help regenerate the community and enhance the environmental sustainability of New Mills and the surrounding area ● Support education by raising awareness of the importance of sustainability issues, especially in the young people who are our future, and encouraging participation in green, asset based community development and enterprises with a community or environmental focus ● Provide an opportunity for public-spirited people and organisations to contribute financially to the community, with the expectation of a social dividend rather than personal financial reward. Under its rules, the society is permitted to acquire assets, lease property, make investments, take out loans and accept credit (community shares) in the interest of achieving its objectives. The society will not, however, pay a rate of interest that is higher than the society needs to retain the investment needed. (For full details, see section 33 of the society’s Rules.) The directors of Torrs Hydro meet bi-monthly (and when necessary more often) for board meetings. Board meetings are structured meetings with dates agreed and the agenda and key information circulated in advance. Each meeting is formally minuted. All directors have access to electronic copies of board papers and all other internal documents relating to the business and its operation. An annual general meeting for members is held each year, usually in April. Prior to this meeting, the directors prepare and present an annual report and accounts; these are also made available after the AGM on the organisation’s website. The directors have adopted a series of policies and procedures covering o Health & Safety o Confidentiality & Data Protection o Reserves These are reviewed bi-annually. The directors acknowledge their duty to seek external advice where the competencies required to make an informed decision are not held within the directors’ team. December 2020 Page 4 Business Development Plan Torrs Hydro New Mills 3.2. Our Team The Board of Directors is made up of a team of up to nine people. They are supported by a team of volunteer engineering advisors, who bring their expertise to both plant operations and the strategic thinking of the Board. Directors: Anthony Ashton Anthony is a retired business owner. He recently stood down as leader of High Peak Borough Council. He was appointed to the Board in 2019. Richard Body MBE Richard was one of the founding directors in 2007. He is currently the society’s Secretary and is responsible for preparing the accounts. His full time employment is as a database administrator. Doug Brown Doug is the managing director of an international electrical engineering company. He advises Torrs Hydro on technical matters He was appointed in 2017. Michael Brueck Michael is a retired lawyer, and is Torrs Hydro’s legal advisor. He was appointed in 2013. Mary Cohen Mary is a retired primary school teacher. She manages the volunteers and coordinates visits to Archie. She was appointed in 2008. David Cooper David is a retired partner in a professional consultancy working in the social housing sector and was previously Director of Development at an inner city housing association. He works on many of the day to day tasks of the society. He was appointed in 2017. December 2020 Page 5 Business Development Plan Torrs Hydro New Mills Esther Jones Esther has lived in the New Mills area for over 30 years and is a founding director of Torrs Hydro. She is a qualified business advisor specialising in third sector organisations and has almost 30 years’ experience of working in and advising such organisations. She brings a strong knowledge of organisational governance, and experience in project and budget management, and in community engagement and consultation. Nick Metcalfe Nick is a retired NHS manager of mental health services. He started as a volunteer doing daily checks of Archie when he retired and became a Director in 2020. Jan Szechi Jan became a Director in 2020. She works as a freelance scientific and technical editor and proofreader and helps produce the THNM newsletter. Engineering Volunteers: Nobby A career of over 40 years in Mechanical Engineering, understanding the principles of using the potential energy of water to generate electricity through a topic covered at HNC, being a reasonably proficient amateur at DIY, and thinking I might be useful helping to look after Archie's needs I volunteered - what could possibly go wrong? There have been challenges, frustrations, success and failures but working with the rest of the team, and learning to stay one step below my level of incompetence, has made for an interesting early retirement - 11 years and counting.