THE TRAVELLERS REST S K E E B Y

Skeeby Community Pub Society Limited

A Community Benefit Society Operating for the Benefit of the Community - Society Number 31027R

BUSINESS PLAN

April 2021

An opportunity to invest in a Community Enterprise in the Village of

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SUMMARY We are seeking investors who wish to become members of a community co-operative that plans to buy The Travellers Rest Pub in Skeeby, North . Our village pub - The Travellers Rest - closed in the summer of 2008. The owner planned for a brief period to lease it as an architectural salvage yard, but it has remained empty and boarded up since. We plan to reopen it as a pub and community hub, run for the benefit of the residents of Skeeby and visitors to the area. It will be a profitable business and represents a fair investment opportunity that will offer modest returns to the members of the Society. It will provide a service to the village and to visitors to the area and will support other local businesses and tourism within Richmondshire. More importantly, it will put the heart back into the village and provide a place for social gathering, cultural activities, a place to meet people and exchange information and it will promote a cohesive and friendly community in the area. It is our intention that the pub will work closely with and in support of the other community facilities in the area, in particular the village hall. If you make an investment you will become a member of the Skeeby Community Pub Society Ltd. We are a Community Benefit Society (CBS) – a co-operative, run for the benefit of the local community. You will have a say in how the society is run, and in who runs the society. You will be a co-owner of a traditional Village pub and will always receive a friendly welcome in the pub that you own. We anticipate that to buy and renovate the building will cost at around £325,000. This is the minimum amount that we need to raise in order to purchase, renovate and re-open the Travellers Rest but we will keep the shareholding offer open up to a maximum of £375,000 (including the £50,000 CIF grant) to help build up cash flow. Therefore we need to raise a minimum of £275,000 from the share offer. We can raise that money by selling shares in the Skeeby Community Pub Society Limited – and everyone who buys a share becomes a member of the Society and will own a piece of the Travellers Rest. We are looking to the people of the Skeeby and surrounding areas and the community for support - and relatives, friends, and others far and wide. We have to raise a lot of money within about 10 weeks, so we are asking for a minimum of £250 (thats 250 shares). Family and friends can get together to share the cost; and groups, organisations, and businesses can also invest. However, no one shareholder or organisation can buy more than 20,000 shares (£20,000). We will initially market the shares locally and provide the opportunity to invest to the residents of Skeeby and then the wider Richmondshire community starting with those who have already offered pledges. We will also offer shares to local businesses before broadening the marketing strategy through social media, traditional media (newspaper editorials etc.) until we achieve the minimum investment required. The offer is available from 24th April to 3rd July 2021, or when the maximum target is reached, whichever is sooner. The management committee reserves the right to extend the offer beyond this initial period if they believe doing so would be of benefit. We have also already progressed as CIF (Community Investment Fund) grant application through Richmondshire District Council and are delighted that we have been able to secure a grant of £50,000. Each member will have an equal say in the enterprise. The initial directors that have formed the Society are accountable to the membership and will, in future, be elected by them. Members will receive a regular newsletter and be entitled to attend the Annual General Meeting and other special general meetings that may be called from time to time. You will be preserving the history and heritage of our village an investing in the future of Skeeby and its people. This will be a pub owned by the community and you will have your voice in what services the pub will provide. You will also receive interest on your shareholding which we estimate will between 1-3%. We have agreed a figure of £175,000 plus legal / survey costs to acquire the freehold from the current owner.

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The Society will agree a lease with a tenant who will run the licensed business selling food and drink and providing other yet to be confirmed services to the local community in our premises and pay rent to the co- operative at a level that will reflect the profitability of the business. The rental income will provide for interest on the share capital to be paid to our members/investors. We estimate an interest payment of between 1 and 3% of the value of investment will be payable from the second full year of trading. This is a great opportunity to invest in a worthwhile community enterprise that will provide a valuable service to its members and users as well as providing a return on investment higher than the prevailing savings account market. We firmly believe that the business will be profitable, but if it is not, the Society owns a valuable asset – the building and land associated with it - which can be sold in order to return funds to investors. Your investment is in the building and land – the bricks and mortar, not the licensed business. BACKGROUND Like many North Yorkshire villages, Skeeby once had a thriving local community with a village shop, post office, pub, church, chapel and village hall. Unfortunately, that sense of community is being undermined by the gradual loss of our village facilities. Our only village pub - The Travellers Rest - closed in the summer of 2008 and has remained empty and occasionally boarded up since. In previous years The Travellers Rest was a successful, privately run village pub. However, in the early 2000’s the pub was sold to a commercial pub company and let as a tenanted pub with ties to the pub company for the supply of its wet goods. The rental levels set by the pub chain were unsustainably high, predicated on over-ambitious assumptions of turnover. The pub consequently suffered from a high turnover of tenants due to the difficulty of sustaining the level of business required to satisfy the rental demand. Not all the tenants during this period were of the standard required and the pub’s reputation suffered. In 2010 The Travellers Rest was bought by the current owner, a private developer, for £155,000 and a planning application was lodged seeking to convert the property to a private dwelling house. The community opposed that application and it was subsequently withdrawn. In an effort to retain the pub as a village amenity and fight the change of use application the Skeeby Community Pub Campaign was launched by a group of village residents promoting the idea of forming a community cooperative with the purpose of raising investment and grant funding to purchase and refurbish the property. The aim was to enable the pub to operate at a fair rent that would give it every chance of success. There is local and national precedent of successful community pub operations and the campaign received much support and advice from those other communities. This led to the formation of the Skeeby Community Pub Society later in 2010, a registered Community Benefit Society operating for the benefit of the community which remains in existence. The Society raised significant profile in local and national press including the Telegraph and Times newspapers, local radio and TV, and featured in a BCC Radio 4 programme on community initiatives and through support from the Plunkett Foundation the Skeeby campaign was influential in shaping the community right to buy legislation in the Localism Act. The Society is led by several people involved in the leadership of local and national businesses and has developed robust business plans for the operation of The Travellers Rest. Based on those plans the Society has made several formal offers to the current owner, many of which have been in excess of his purchase price in 2010, and the first of which was made prior to the current owner undertaking the now aborted external refurbishment and internal remodeling works. Over the years, the property has been poorly marketed at a price which is beyond market value by the current owner. He has carried out re-roofing work, but he has stripped out the public bar, public toilets, kitchen, and beer cellar leaving an unfinished shell that is open to the elements. Some of this work, including removal of painted render to the front elevation, contravened conditions on the limited Planning consent 3

for the roofing work. The pub has now remained unoccupied and in a poor state of repair for 12 years and therefore to bring the property back into operation as a viable pub will require significant investment which is not recognised in the asking price of the property.

Marie Church, one of the founding members of the Skeeby Community Pub Society campaigning to on behalf of the Traveller’s Rest at the re-opening of the George and Dragon in Hudswell

In 2015 the owner again lodged an application for change of use. This application was in line with the intentions stated by the owner to SCPS during discussions in 2010 when he stated that he would not sell the property to SCPS and would instead leave the property boarded up until the community became “fed up” with looking at the condition of the pub at which time he would renew his change of use application. At this point SCPS successfully lodged an application to register the pub as an Asset of Community Value (ACV), an initiative that SCPS first raised with RDC in July 2012. The Travellers Rest was an important reference case in the drafting of the Localism Act, particularly the community right to buy legislation. The primary purpose of ACV listing is to afford communities the opportunity to buy, an opportunity which has been effectively denied by the owner’s intransigence and refusal to consider realistic market offers for the property. At a public meeting held in November 2015, the campaign to acquire the pub was relaunched and at that meeting, 15 members offered to join and invest, increasing to 40 people who pledged to invest over £100,000 in the venture. Most of these were local residents, but some were from people who live further away and wished to support our enterprise. With the launch of the prospectus and the associated publicity we succeeded in demonstrating the required level of interest and investment to acquire and refurbish the premises. With this evidence of support, in June 2016 the planning committee overwhelmingly voted against the owner’s proposed change of use of The Travellers Rest from a pub to a dwelling house. In late 2016, the owner lodged an Appeal against the rejection of his Planning Application. In April 2017 the owner’s appeal against the decision to refuse planning permission for change of use was dismissed by the Planning Inspector. The Inspector’s report was very clear in the reasons behind the decision – she considered that the community demand to retain the pub is clear, there is evidence to support that it is a viable proposition, and there are no suitable alternative premises in the village to accommodate a pub. It was also considered that the property had not been marketed at a reasonable price.

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Whilst the Society cannot force the current owner to sell the property, in the intervening period we have attempted to reopen negotiations for the purchase of the property at a reasonable market price to bring back The Travellers Rest as a valuable local amenity and asset. During 2020, the SCPS has extended its board of Directors and re-embarked on a campaign to raise the funds to acquire the Travellers Rest. As of April 2021, the pledges received so far have reached over £167,000. In April 2021 the SCPS agreed a purchase price of £175,000 with the current owner. With the sale agreed, the SCPS is now able to sell community shares, as such all individuals who have pledged to invest will be asked to convert their pledges into share purchases, and time-limited share purchase offer will be available to anyone who would like to invest from 24th April to 3rd July 2021.

Committee Members campaigning outside the Travellers Rest December 2020

DESCRIPTION OF BUSINESS Our plan is to buy the freehold of The Travellers Rest Public House in Skeeby and reopen it as a traditional pub and community hub, selling local ales from local brewers, good quality food (also using local suppliers wherever possible) and providing a venue for traditional pub sports and games, local events and celebrations, music and culture. We would also hope that a small retail element can be incorporated, selling a few basic supplies and local produce (eggs, milk and fruit and vegetables). The Society will own the land and buildings and agree a lease with a tenant to run the licensed business. The terms that we will agree with our tenants will give them every incentive to build a profitable business for themselves and also ensure that the society receives a benefit (through a stepped rent), as the business becomes more profitable. The lease could also require the tenant to provide for community events, celebrations, and cultural and social activities and to allow SCPS to establish a village shop from the premises, providing that this proves to be a viable proposition. The re-opened Travellers Rest will fill this void and become a meeting place at the centre of the social life of the village and it has the potential to become a thriving business. PROPERTY DESCRIPTION The property comprises two interlocking buildings one of which is a single-story construction while the other,

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which is the main section, is a two-story construction. Both buildings are constructed of stone. The finished painted render has been removed by the current owner outside of planning conditions. Both areas have been re-roofed with pantiles on a pitched timber frame, and timber windows have been replaced with double-glazed uPVC windows. To the rear of the property is a large beer garden which is now badly overgrown. This is raised and accessed by steps from a small outdoor yard. To the front of the property there are six car parking bays although these do not fall within the ownership of the property.

The Overgrown Beer Garden as it is today vs a sunny day when the pub used to be open.

REOPENING THE TRAVELLERS REST The precise opening times of the pub will be a matter for the tenant who will run the licensed business, but we will be looking for a licensee who will open the pub seven days a week. We anticipate that, during the winter (October – March), on weekdays it may be open only during the evenings, but all day (12 noon to 12 midnight) on weekends. During the summer it should open for a lunch time period as well as evenings every day. Consistency and reliability of opening times is a key issue for residents, and we will make it clear to the tenants that we appoint that opening times must be well advertised and adhered to. Going a step further, we also see the re-opened and revitalised Travellers Rest as a project that will help to combat loneliness, improve community spirit and community cohesion, by providing a venue for a variety of meetings and activities that go well beyond what a traditional pub provides. Many other community pubs have done this successfully and have been able to carry it through by appointing a tenant that is aligned with this vision and making it clear, in the lease agreement, that is the kind of pub that they will be expected to run. In the past teatime pensioners specials were very popular. Other examples might be, daytime cafe facilities, a library and book club, mobile hairdressing. Responses to a community survey will be taken into account in informing our tenancy agreement and discussions with applicants on this topic. It is also essential that the pub provides good quality meals. Food will be available depending upon demand – but the aim is to build up food sales by generating a reputation for good quality, simple pub fare, using local produce. It is recognised that moving towards a position where food sales represent at least 50% of the income should be the aim of the tenants and to achieve this they will need to offer food of good quality throughout the week. We will make it clear in appointing our tenants that we feel that the food sales are a key component to establishing a profitable business and it must be the tenant’s stated ambition to build up food sales by generating a reputation for good quality, simple pub fayre, using local produce as far as possible. The pub will attract both villagers and visitors to the area to use it. It will complement the activities run at the village hall and other businesses in the area, which serve tourists, such as bed and breakfast 6

establishments and holiday cottages.

Skeeby is also near to larger centres of population including Richmond, Catterick Garrison, Darlington, and the conurbations of Teesside. It is situated on the main transport link from to Swaledale as well as being linked to a network of footpaths and will also attract walkers who can access the pub from these paths. Cyclists are also a target group, particularly if we can provide day-time café facilities. The garden behind the pub is a great asset, which provides the opportunity for outside dining and drinking as well as the potential for outdoor activities such as quoits, and a children’s’ play area. The proposed shop, selling basic supplies would also provide a small supplementary profit-making part of the business, but one which will be run at low cost, primarily as a service to the village, thus saving journeys by car to the nearby towns. The precise management arrangements for the shop have yet to be agreed, but we would encourage our tenants to help develop the shop to become an integral part of their plans for the development of the pub as the hub of village life. LOCATION The Travellers Rest is in Skeeby, a small village with an estimated population of 390, which falls within the North Yorkshire district of Richmondshire which has a regional population of 53,244 (2018 ONS). Skeeby is located 2 miles to the northeast of Richmond and 12 miles southwest of Darlington. The village lies on the A6108 which connects Scotch Corner to Richmond, with the A1 being approximately 2 miles to the northeast. Intercity rail connections can be made at Darlington and the area is served by Durham Tees Valley Airport. The village is referred to in the doomsday book and its history is predominantly associated with agriculture. The village developed as a linear settlement with the majority of the properties around the village green dating back to the 19th century, although there are a number of properties in the village which date back to the 17th and 18th century. Today Skeeby is seen as a popular residential area particularly with it being close to the A1. Adjacent properties include residential dwellings The Travellers Rest is located adjacent to the village green to the southern section of the village, one of which was the former Post Office. As a consequence of its linear development the area surrounding the village is open countryside and agricultural land with there being two farms in close proximity. INITIAL RE-OPENING Once reopened, the pub will quickly attract local users from its former customer base. With a substantial number of local people being members of the Society and shareholders in the business, they will be both more committed to using the pub themselves and to bringing their friends and family with them.

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Building its reputation in the area as an attractive venue for food, drink and entertainment will take longer, but within a year this should be established. It is proposed that the pub is developed in two stages. The key initial objective is to raise the required funds to purchase the freehold asset and bring the pub under community ownership. Once we have completed the acquisition, we will undertake the major repairs, refurbishment and decoration including the reinstallation of the bar, cellar, kitchen etc. The pub will be re-opened as soon as possible after the refurbishment and decoration has been carried out. Funds to complete these works have been identified in our business plan. Following the purchase of the property, we anticipate that further fund raising, and subsequent building and refurbishment works will take several months to complete and the pub may not be ready to open until up to a year after purchase This will allow appropriate time to identify a suitable tenant to run the business. OUR TENNANTS We strongly believe that we should let the pub to tenants rather than appoint a manager. The appointment of a tenant to run the business is a crucial step. The advantage of this arrangement for the Society is that the tenant carries the business risk. The attraction for the tenant is that they will benefit directly the more profitable the business is. Therefore, they will have every incentive to ensure that the business thrives and grows. We will be seeking to employ an experienced licensee who has a track record of running profitable public house businesses. We will be inviting tenants who wish to lease the premises from us to submit their business proposals to us and we will select the tenant who best meets the following criteria: • They should preferably have at least five years’ experience in the licensed trade, preferably in a village/rural setting. • They must demonstrate how they intend to build up the business and how they will provide good quality, competitively priced food that will eventually provide at least 50% of the sales income. • They must demonstrate how they will provide a venue for village events and support local cultural and sporting activities (quoits, darts, dominoes, folk club, quizzes, and others). • They will need to provide evidence of their marketing plan. • They will need to convince us that they will provide a warm, welcoming, and friendly atmosphere in the pub. • They will need to convince us that they will work harmoniously with the board of directors and listen to our advice and suggestions. • Cellar management experience and training. • Experience in general retail work. We will agree a three-year rolling lease with our tenant, based on rental levels outlined later in this document. The Society will monitor the tenant’s financial performance. We will ensure that there is an “open book” policy in place, run through an accountant that we mutually appoint. This will enable us to have full confidence in the financial reports that we are provided, and the lease agreement will also allow for the level of rent to be increased if the business is more profitable than expected or reduced if it is less so. The details of this are outlined later in this document. The tenant will be running their own business within our premises and, as such, will carry all the risk of failure and debt. If the business were to fail, there would be no legal access to the Society’s assets. COMMUNITY BENEFIT SOCIETY STRUCTURE We have established a corporate body that is a Community Benefit Society (a co-operative) operating for the benefit of the community which is registered with the Financial Conduct Authority. We have chosen this legal model because it emphasises the social benefit of the investment we are asking our members to make. Incorporation gives the members and directors the protection of limited liability, just like a limited company, but unlike a limited company, an CBS is not designed to generate private profit, 8

(though we certainly intend that investors will receive a fair return on their investment), but to deliver a community benefit. This model guarantees that the assets that the society will own will be used for the benefit of the community and cannot be disposed of for the private profit of the directors or members. The Co-operative rules, which act as our constitution, have been approved by the Financial Conduct Authority. Providing that they behave responsibly, reasonably and legally and take out any necessary insurances, incorporation protects the members and directors of the society from any legal action against them as individuals and any access to their personal finance in the event of the enterprise entering receivership. The CBS structure allows any person who buys one or more shares to become a member of the society. Each member has one vote irrespective of how many shares he or she owns. Each share costs £1. Because of the large amount of funds that are required, the board decided that a minimum investment would be 250 shares. However, we hope that most members will invest more than the minimum and our publicity will encourage members to invest at least £1,000. No shareholder can invest more than £20,000. We anticipate a combination of investors distributed in the regions of the following profile based upon like enterprises: 10 people buying 250 shares @ £1 £2,500 25 people buying 500 shares @ £1 £12,500 70 people buying 1,000 shares @ £1 £70,000 24 people buying 2,500 shares @ £1 £60,000 10 people buying 5,000 shares @ £1 £50,000 4 people buying 10,000 shares @ £1 £40,000 2 people buying 20,000 shares @ £1 £40,000 TOTAL £275,000 Plus the CIF grant funding of £50,000 already received provides a total of £325,000. These investments / funds may be supplemented by further grant aid or institutional investment. The Society’s intention is that it will pay annual interest of between 1 and 3% and investors can withdraw their money when they wish to. However, in order to give the Society a chance to launch the business we will require investors to commit to keep their investment in the Society for at least the first 2 years before they can withdraw it. After that they will be required to give three months’ notice of their intention to withdraw funds. The Society rules will give the directors the power to refuse a request to withdraw funds if it would endanger the business. It is our very firm intention not to use these powers unless absolutely necessary. We want investors to know that their money is available if and when they need it. Once we have reached our target there will be a waiting list of new members ready to replace investors that withdraw funds. Whilst we anticipate that the business will be profitable and therefore the tenant’s rent paid to the Society will be sufficient for the Society to pay a competitive level of return to its members, the Society will not be likely to pay any interest until the end of the second year. The shares that members buy are redeemable in the way set out above, but they are not transferable (i.e. members cannot sell them to anyone else). This arrangement allows the Society to be exempt from the Financial Services and Markets Act for Society share issues. Whilst we firmly believe that the business will be profitable and that the ownership of the asset, the land and buildings, provides members with a high level of security, it is important for members to understand that there is a potential risk that the business may fail and land values may fall further. If this were to occur the value of the share in the Society could reduce. A board of directors comprising of not less than three and not more than twelve members will manage the Society. They will be accountable to the membership and will report to them via a newsletter and an AGM. At the first Annual General Meeting all elected members of the Board of Directors shall stand down. At every 9

subsequent Annual General Meeting, one-third of the elected members of the Board of Directors, or if their number is not a multiple of three then the number nearest to one-third, shall retire from office. The Society will lease the business to a tenant, who will run the pub and pay rent to the Society. The board will set the broad policy direction for the business and agree key targets with the tenant. Beyond that, however, the tenant will be left to manage the business as they see fit. The board does not intend to interfere in the day to day running of the business or attempt to micro-manage the pub. The Society will, via an interest payment, provide a competitive rate of return to its membership that will be obtained from the secure income of rent paid by the tenant.

A busy meeting at Skeeby Village Hall, listening to the Directors of the Skeeby Community Pub Society re- launch its campaign to acquire the Travellers Rest

The Society’s rules determine that any surplus made by the Society after it has paid interest to its shareholders must either be reinvested in the business or used for the benefit of the local community or for another charitable or community purpose. Directors and members are forbidden from benefiting in any other way from the activities of the Society. It is our intention that the Society will continue to operate a public house for the benefit of the villagers of the Skeeby for the foreseeable future. If, however, the membership should choose, in the future, to dispose of the property, any surpluses that may arise after all the shareholders have been paid back the amount they invested must be used for a charitable purpose. This does not prevent the directors choosing to reflect the fact that the enterprise has made a profitable sale in the level of interest paid to members in the final year of operation, providing that this interest is reasonable. This proposal is not regulated by the Financial Services and Markets Act 2000 because the shares in the co- operative are not ‘securities’ for the purpose of those regulations. If the business fails, there is no right of complaint to the Financial Ombudsman or the Financial Services Compensation Scheme. CURRENT DIRECTORS The initial directors who have worked to establish this enterprise come from a variety of backgrounds and have a range of relevant experience and skills. Brief summaries of these are provided overleaf:

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Carol Wilkinson – Chair Carol is married to Dave and between them they have 4 grown up children, 4 grandchildren and 1 great grandchild. Carol has lived in Skeeby (Springfield) since 2014, having previously lived in Hudswell - opposite The George & Dragon. She sat on the board of Hudswell Community Pub (HCP) for 5 years, until moving to Skeeby, and was involved in the implementation and running of the Little Shop. Currently Carol works part-time at The Station in Richmond and enjoys walking, cycling and when possible (and Covid permitting) touring the UK and Europe in their motorhome. Christopher Soley – Business Advisor Christopher Soley is married with 3 children and lives at Halfe Hill View, close to Skeeby village. He graduated from Liverpool University in 1997 with an honour’s degree in Mechanical Engineering and Management. His career developed initially in the quarrying industry where he gained a diploma in quarrying and held a number of senior production management roles including quarry and area manager. Over the last 18 years, he has worked within the family brewing and pub business and is now Managing Director of the company which owns 80 pubs, produces around 100 million pints of beer a year and employs over 500 people. He has also recently completed a diploma in brewing. Adrian Bramley – Membership Secretary Adrian grew up in Nottingham and received his musical training at Manchester University. A school and college teacher of music for the last 35 years, Adrian now teaches privately as well as playing in local musical groups and running his own 10-piece function band. In addition he works for NYCC, as Clerk to the Governors of a school in Catterick, as a wedding registrar, and more recently as part of the team who are training local services and businesses to administer LFD Covid 19 testing for their front-line staff. Adrian has lived in Skeeby for the last 19 years and has been a member of SCPS for the last 12 years. Ali Bell – Website and Marketing Guru Ali’s parents moved to the village when he was 16 and he had his first ‘legal’ pint in the Travellers rest! His parents still live in Skeeby, and some 23 years later Ali moved back to the village with his family. He would love to see the pub reopen in its new guise as a local hub, for everyone to use and enjoy. A keen cyclist and beer drinker, Ali sees the benefits the location has to offer for both daytime and evening socialising. Joe Ayre – Technical Advisor Joe is a Chartered Surveyor and Chartered Building Engineer. He started his career ‘on the tools’ working as a joiner. That day-to-day experience of working on construction sites gave him a fantastic grounding and appreciation of the skills required and challenges that need to be overcome to deliver safe and sustainable buildings which are fit for purpose. He always strives to put this practical experience to the best possible use and has passed much of this knowledge onto colleagues, clients and other professionals to give them a more rounded appreciation of the sector.

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Moving into building control, he worked for several authorities in the north and south of before entering the private sector which enabled him to progress in different directions. He now takes great pride in leading a team of dedicated professionals who are client-focused and retain the personal, professional, practical approach. Juris Helmanis (Jorge) – Finance Jorge has lived in the village for over 20 years, having in a previous life worked in the domestic gas fitting, central heating, plumbing and heating sector. He is now retired and keeps himself busy restoring 1950s and 1960 motor cars. He is a strong supporter of the SCPS and would welcome the reopening of the Travellers Rest for use by the community as a whole. Kay Richardson – Secretary Kay grew up in Skeeby, and after moving away for a few years she came back to live in the village in 2012 and has been actively involved in the village ever since by regularly assisting the Parish Council with fundraising for the play parks and organising the installation of the community defibrillator. Kay’s first job was washing pots in the Travellers Rest at age 13, and she continued to work there for a number of years as a waitress. Kay worked at the Traveller’s Rest when it was a thriving and popular pub offering good food, beer and a warm and welcoming environment. The re-opening of the Traveller’s Rest is close to her heart so she has recently joined the SCPS committee and taken on the role of Secretary to actively work towards the reopening of the Traveller’s Rest as she would love to see it returned it to its former glory. Lorraine Paula Rickelton (Loll) – Community Liaison Lorraine was born and raised in Middlesbrough and spent her early working life in sales and marketing, working for the English Tourist Board, Proctor & Gamble and others. Lorraine stopped work to be a mum at 29, residing on the North moors in Castleton and Lealholm, enjoying and contributing to village life. She opened and ran clothes boutiques in Stokesley and Yarm from age 38, then retrained into catering at 45, running her own external catering business for weddings, etc, until retirement at 65. Now in a relationship with Kit, they have recently renovated and moved into Schireby Lodge together. They are both enthusiastic to see the Travellers Rest rejuvenation and wish to contribute to the Skeeby Community Pub Society in every way they can. Christopher Fraser Harden (Kit) – Community Liaison Kit enjoys being on the tools: he taught himself to type and send/receive morse code in his late teens, maintained specialist military vehicles, fitted for radio (FFR); operated, supervised and later managed military telecommunications. Post-Army, Kit joined Hutchison Telecom as a Customer Services temp in Darlington; where he ultimately gained promotion to Field Operations Engineer, responsible for maintaining and upgrading the Orange network, first in Scotland working out of Livingston and Tannochside, the later in NE England, again working out of Darlington. Kit played rugby regularly for Richmondshire RUFC until 2005, served on the committee, acted as bar manager and later Treasurer, with his late wife Gill Harden, a teacher at Risedale Sports & Community College. Most recently, kit has been a member of the Richmondshire Covid-19 Mutual Aid, a Facebook team visiting local folk in need and self-isolation with socially distanced shopping, prescriptions, etc. and concurrently Kit is an NHS Responder for our local area. Loll and Kit want to bring enthusiastic support and

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to contribute usefully to Skeeby and the Community Pub Society. The team has also been supported by the Plunkett Foundation through their adviser, Martin Booth, who will provide ongoing support and advice as well as help accessing grant funding. HOW WE ARE ENGAGING WITH OUR COMMUNITY What we are already doing: • There are currently 9 elected members of the committee board as detailed above. All members are people from the local community and are always available within the community to discuss the proposals. Anyone is free to join our committee (subject to the SCPS rules) and we welcome as much support as possible. • We are an open and friendly group that meet regularly via zoom (under current Covid 19 guidelines). • We also form sub-committees for specific activities as required such as PR, property matters, fundraising etc. as required. • Open zoom meetings available for anyone to join are held regularly so that we can discuss progress and listen to any suggestions / concerns. • We already enjoy the support of a PR specialist who works alongside Kay Richardson. Together they provide regular updates through local and national newspapers, TV, radio and various social media platforms. • Ali Bell has designed and manages our website where we provide regular updates on the project along with documents such as the society rules and the business plan. There is also a suggestion form available and contact details for direct engagement. • Emails are sent out regularly to all those who have registered an interest in pledging their support and a newsletter and paper updates are also used from time to time to provide further informative updates. • Many local volunteers have assisted with leaflet distribution to help get our message out to both the local and wider community. • Grant application advice and guidance has been gratefully received from a couple of our members. As the project develops, we plan to: • Architectural services have already been given in the form of drawings for the re-modelling of the interior in addition to the offer of more general advice and guidance going forward. • A retired building inspector has offered his expert advice and guidance as we progress. • We have an electrician, builder, and interior design professional among our members, all of whom are all keen to help with the renovation of the building. • The garden to the rear of the pub needs completely clearing and reinstating. We have a willing volunteer already waiting to organise this and arrange working parties as required. • The practicalities of reinstating services will need researching and we have willing helpers ready to put their time and effort into this. • A working army will be required when the final stages of painting and decorating is upon us and we have many ready, willing, and able members who cannot wait to do their bit. • The development of a community shop will be open to negotiation with the tenant, but it is envisaged this will be with the support of volunteers from our membership. • There will be plenty of opportunities for our members to contribute to the refurbishing and reopening of The Travellers Rest and we look forward enormously to meeting and working with them. 13

We will welcome and actively encourage as many as possible to get involved with this project as it is recognised this will help strengthen our already strong, cohesive community into a place that nurtures wellbeing. A place where we all want to spend time and look after each other. BUSINESS SWOT ANALYSIS Strengths • Excellent location in the village on the main road between Scotch Corner and Richmond and close to large towns (Richmond, Catterick Garrison, Darlington). • On a main road with a frequent bus service, and a good footpath network with Richmond and other villages. • A base of regular customers who are looking forward to returning to The Travellers Rest • The commitment of the growing membership base who will also encourage their friends and family to use the pub • The location within the popular tourist destination of North Yorkshire, a holiday area, will enable the business to attract tourists to use the pub. • It is not, at this stage, proposed that the business must service any debt • The business will own the freehold and the tenants will not be tied to any brewery and therefore free to negotiate the best deals and the flexibility to diversify into other income streams such café, shop and other services for the local community. • Local brewers are keen to support the business and to supply excellent and popular real ale. • The company will appoint an experienced licensee as the tenants to run the business and take all the business risk • The company will benefit from the secure income of rent from the tenant and a bond of £10,000 from our tenants • The pub benefits from a large beer garden which was previously used on the local • quoits circuit. • Free of tie from large Pubco with fare rent and freedom of choice on stock (e.g. local beers), • Compelling evidence now of the viability and resilience of the community pub model to survive in difficult times. Weaknesses • The pub had been closed for over 12 years and therefore potentially lost customers to other venues (though none within a 2 mile radius). • It therefore has little or no “good will” to build upon • The car parking facilities are very limited with the six spaces in front of the pub being owned by the council. • The pub is in a poor state of repair and will have to be fully refurbished before it can be opened and operated. Opportunities • To build up a reputation starting from scratch with new tenants and staff • To develop new customer bases including walkers, cyclists, people in search of locally sourced, good quality food, and locally produced beers

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• As the business will be established as a community enterprise, run for the benefit of the residents of Skeeby, it will be able to access grant aid to help establish the business and to assist with development plans • The proposed programme of events should attract new and old customers to the pub • To develop a small shop with the potential of operating as a post office • To encourage and embrace new community “hub” uses – café, clubs, talks, take-away meals, entertainment and to support Village Hall functions by supplying catering and bar services. Threats • Capable of generating enough funds to acquire the freehold from investors but not enough funds to complete the refurbishment • The costs of improving the building are more significant than budgeted and more work may be needed • Once business is established several shareholders may request withdrawal of their shares at the same time • Despite all the work and effort the challenging economic climate may lead to insufficient use of the pub and the business may fail to provide the anticipated return • We appoint a tenant but they turn out to be unsuitably matched to the community objectives • The tenants leave the pub suddenly and unexpectedly OVERCOMING WEAKNESSES AND THREATS Attracting trade We have received over 100 pledges from residents which indicates the significant appetite that the village has to see the pub return. Once the pub is owned by the village, there will be a considerable commitment to use the pub by residents who will also encourage family and friends to use it. The village lies on the A6108 which is the main route that connects Scotch Corner to Richmond, with the A1 being approximately 2 miles to the northeast. The village falls within the North Yorkshire district of Richmondshire which has a population in the region of 53,244 (2018 ONS figure). Richmond itself was quoted in the Lonely Planet as being “One of the most beautiful towns in England”. It therefore enjoys a significant number of visitors throughout the year who drive immediately past the pub on the journey to and from the town and beyond into the Dales. The pub will attract visitors on holiday in the area and people from nearby towns by building up its reputation as a traditional, friendly country pub selling good quality food and real ale. The significant publicity and press, radio and TV coverage of the campaign to reopen the pub will also encourage people to come to The Travellers Rest and, providing that their experience at the pub is good, many of these should return. Skeeby is linked to a network of footpaths and will also, therefore, attract walkers using these paths, who can access the pub from nearby paths. There has been a marked increase in the number of walkers and cyclists passing through the village since coronavirus lockdowns restricted travel and encouraged exercise. The planned Designer Village and garden centre at Scotch Corner, only 2 miles away, will attract more customers. Lack of car parking space There is room for six cars at the front of the pub and opportunity for street parking along the main A6108

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that runs through the village. The George and Dragon in Hudswell suffers the same car park challenges but their opening event, which attracted 200 people, managed to cope sufficiently via on street parking with this unprecedented level of attendance. We will continue to investigate ways to improve the car parking facilities. The business will also deliberately set out to attract cyclists and walkers to use the pub and most of the villagers can walk to it. There is also a regular seven-day bus service to the village from Richmond. The recent A1 upgrade of the old northbound carriageway into an access road, provides, via Scurragh lane, much more scope for cyclists to access the village. Inability to attract enough interest from investors We are continuing to review all sources of funding including government grants. We have already been successful in our application for a Communities Investment Fund (CIF) Grant of £50,00. We may also be able to access other matched funding such as the recently announced Community Ownership Fund which would provide 50% match funding for monies raised locally to buy community assets up to £250,000. Details of this scheme are still to be announced. We have also explored crowdfunding opportunities. We anticipate being able to generate enough funds from a combination of local shareholder investments and grant funding however we may progress crowdfunding if there is still a funding gap. Ultimately if the proposed enterprise does not attract the anticipated investment to acquire and refurbish the freehold asset of The Travellers Rest, then the proposed purchase will not go ahead. If insufficient shares have been purchased, the share issues will be halted and all those who have invested will have their investment returned to them. Shareholder withdrawal The directors will aim to sell shares and attract grant aid that will ultimately lead to a sum being raised that will allow the Society to buy the building and re-open the pub. In subsequent years, the Society will aim to build up a reserve from the rent receivable prior to payment of interest to its shareholders. By the end of the fourth year this reserve fund should stand at around £18,225. The reserve fund will be held in a separate reserve account and not used to run or develop the business. Shareholders must agree not to withdraw funds for the first 2 years of the operation of the business, to allow it to establish itself. After that they will be required to give three months’ notice if they wish to withdraw shares. In effect, therefore, the earliest that any shares can be withdrawn is 27 months after the pub has opened. As the business grows, each year a proportion of the surplus will be added to this reserve fund (up to a maximum of £20,000). This is illustrated in the financial section of this prospectus. If a shareholder gives notice that they wish to withdraw shares, then shares of the same value will be marketed and can be acquired by new or existing shareholders. Ideally, new shareholders will be found to replace those shares that are to be withdrawn. If they cannot be replaced, then the reserve fund can be utilised. In addition to the reserves fund the Society may also need to invest further capital expenditure in the building which is anticipated will be funded from additional member investment. Providing that the business is successful and pays interest, in line with or better than the interest rates available from banks and building societies, it is unlikely that large numbers of shareholders will wish to withdraw their shares at the same time. Whilst the Society asks that every member commits their investment for at least two years, if, for a pressing reason, a member needs to withdraw their shares in advance of these deadlines, then the board has the power to allow this and will make every effort to facilitate it.

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The business is not successful If the business is not successful for the initial tenants, then the directors will consider the following alternatives: • Identify alternative and improved tenants to operate under the same business model • Consider managing the pub through community volunteers We appoint a tenant but they turn out to be unsuitably matched to the community objectives • We will hold a robust selection process to ensure that the chosen tenants are aligned to the community values and expectations. They will however be free to run their business so as to maximise their commercial opportunity. If there is a material difference in how the society members feel the community pub should be operated then the board will seek to work closely with the tenants to realign the offer where practical. The tenants leave the pub suddenly and unexpectedly • The tenancy agreement will contain an appropriate notice period to give the Society time to find an alternative tenant. We will however hold a cash bond (deposit) from the tenant so that should the tenant leave suddenly, then we will be able to use this bond to offset lost income until we find an alternative tenant. The costs of improving the building are more significant than budgeted and more work may be needed Prior to the completion of the acquisition of The Travellers Rest, the Society will undertake a comprehensive survey of the internal and external condition of the pub. This will include gathering estimates from building trades and decorators to more accurately refine the costs required to re-open and let the pub. Should these costs be materially different than the figures used to build up the business plan, then the project will be re- assessed, and any significant changes revised within the business plan. This will be undertaken before any of the cheques have been banked from prospective investors so that investors can re-assess the opportunity subject to any material changes to the costs and overall business plan. If the prevailing market conditions are so unfavorable that, despite a sound business plan, vigorous and sustained marketing and the support of local user/owners, the business does not develop in the way anticipated, then the directors would seek to dispose of the pub as a going concern. MARKETING PLAN There is no other pub in the village. The nearest pubs are located 2 miles away by road in Richmond and 3 miles away by footpath or road in . There are numerous pubs in Richmond itself. Also, there are two pubs in Gilling West. Whilst they are some distance away, they are competitors for the tourist market. However it is interesting that Gilling West – a slightly larger village than Skeeby, but with less passing trade – is able to support two pubs. Visitors to the dales looking for a country pub to walk to, or for a meal out, will consider options across a wide area. Our tenants will market The Travellers Rest as a homely, traditional pub, which fully meets the tourists and day-tripper’s idea of a country pub. This involves good quality pub food, sourced from local suppliers, good quality beers brewed locally, a friendly atmosphere and traditional pub entertainment. The aim is to attract visitors and to meet the needs of the village for a meeting place and venue for events. Whilst the villagers will return to the pub quickly, it will take time to build up the tourist and visitor usage. Reputation will spread most effectively by word of mouth and must be built on good quality provision and service. Nevertheless, regular marketing is vital to supplement this. The marketing of the business will be a matter for both the board and the tenant. Whilst the lead responsibility will rest with the tenant, the Society will be looking to appoint a tenant who will work in 17

partnership with them in marketing The Travellers Rest and who will pursue the following marketing strategy: • The opening of the pub by a key local figurehead to be widely covered by press and local TV/radio stations. The aim of the tenants should be to make their experience so good that they will return. • There has been ongoing media interest that has led to recent articles about The Travellers Rest and the community campaign to reopen it being published in a wide range of journals and newspapers including the Darlington and Stockton Times, the Northern Echo, the Yorkshire Post and The Times. At the time of the owner’s Planning Application, the Society raised significant profile in local and national press including the Telegraph and Times newspapers, local radio and TV, and featured in a BCC Radio 4 programme on community initiatives and through support from the Plunkett Foundation the Skeeby campaign was influential in shaping the community right to buy legislation in the Localism Act. • The tenants will plan advertisements in the local press, including the free advertisers and leaflets and posters delivered to all the Bed and Breakfast establishments in Richmond and other nearby holiday venues including caravan parks. • Regular leaflet drops to the village, surrounding area and to nearby holiday establishments which advertise the pub and its programme of activities (darts, quizzes, music nights, seasonal events and so forth). • Regular advertisements in the press advertising the same programme and stressing the traditional Richmondshire pub welcome that you will find at The Travellers Rest. • The tenants will also be required to market through social media and internet media, Facebook, Instagram and Twitter accounts to proactively market the pub. • A booklet of walks and cycles rides from The Travellers Rest could be produced and marketed locally. This will attract walkers to the pub. • Holding events that celebrate local food and locally brewed beer and advertising these in the specialist press. • A well-presented and regularly updated website will be maintained. BUILDING UP THE BUSINESS Our ambition for The Travellers Rest is a combination of traditional Yorkshire country pub and community hub. Therefore, our tenant will be required to produce a business plan that demonstrates how they intend to build up the business whilst, simultaneously growing the community hub aspect of the venture. We will be offering a tenancy that will be attractive to an experienced licensee. Tenants are typically expected to pay rents that are equivalent to 50% of the expected profits of the business or 10-12% of net turnover. Leased and tenanted pubs with turnovers in the region of £150,000, show that typical rents range from £15,000 to £18,000 per annum. It is our intention to set a rent level which provides sufficient income to allow the Society to pay up to 3% return to our members and low enough to attract an experienced tenant to start up a new business. We intend to set the rent at £15,000 for the first year of pub trading, rising to £16,500 in year two and £18,000 in the third year of trading. This will give the Society sufficient funds to pay interest to shareholders and build up some reserves. It also gives the Society the flexibility to lower the rent level if the business does not grow at the expected rate. Shortly before its closure under the pub company operating structure, the pub was being charged an unsustainable rent of c£29,000 per annum and fully tied for wet goods which further hampered the profitability by around £9,000 per annum. An effective “rent” of £37,000. Given the trading potential of a 18

village pub it is clear why The Travellers Rest fell victim to the pub co model and into a poor state of repair and became unviable under these excessive and unsustainable conditions. It is anticipated that the new tenants will achieve minimum sales of £150,000 per annum net with a target of £180,000 per annum net. As previously explained, the downfall of The Travellers Rest was not as a result of the non-viability of the village pub but directly because of the excessive pub company rental demands and beer tie. Our tenants will be free to purchase their beer and other drinks / food requirements from suppliers of their choice and therefore will enjoy the enhanced margin that a freeholder can achieve. Given the full refurbishment that will be undertaken of the premises, it is our contention that these trading numbers can be easily achieved and given the commitment and support of the residents, the pub will thrive as it has in previous years gone by. In the past the pub was a busy social hub with regular darts, dominoes and pool teams along with regular Saturday night social events. We fully expect that these sales figures can be supported for three key reasons. 1. The fact that the pub is owned by the local community will be a big incentive for villagers to support their own business and to encourage their family and friends to use it. 2. The effective marketing to a wider audience which includes tourists travelling through the village, cyclists and walkers. 3. The tenant that we appoint will be expected to drive the sales of food to 50% of the sales over the three-year period. Developing food sales is a key component to making The Travellers Rest a viable business and the tenants that we appoint will have had to demonstrate how they plan to achieve this, and it will be closely monitored throughout the tenancy. Having made these points, it is recognised that, as the pub is currently closed, the business will be starting from a low base. The sales predictions are based on relatively conservative estimates of the number of people who will use the pub. They are also supported by the expert RICS valuation undertaken by MJD Hughes in February 2021. The tenant will be wholly responsible for running their own business within our building. They will therefore meet all the running costs from the income that they make from sales. The tenant will be responsible for running the business within broad guidelines set by the board of SCPS. The tenants are required to live in the accommodation in the rooms above the pub, which ensure the pub operates as a viable lifestyle business. In return for their investment the SCPS intends to pay annual interest on the share capital. It is anticipated that, depending on actual trading circumstances, interest of up to 3% will be paid at the end of the second full trading year of the pub. The George and Dragon continues to operate as a successful community owned asset, operated by tenants paying a rent to the society. There is a growing market for community pubs – evidence that if the community is invested in the project they will make more effort to use the pub and contribute to its success. In the UK, there have been 100 community pubs established since 2004, reinvigorating pubs that were once struggling businesses. Only one of these has closed down which, given the current pandemic, is testament to the success of the model.

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The original bar and the same lounge area now fully stripped out by the current owner

INTEREST TO SHAREHOLDERS Due to the anticipated time taken to acquire the pub and then undertake a major refurbishment, we do not forecast to offer a return to our members until the end of year two. By that time, it is envisaged that an interest payment of up to 3% of their share value will be paid to shareholders. The actual amount to be paid will be determined by the membership at the AGM following a recommendation from the board of directors and will be dependent upon two factors: 1. The prevailing rate of interest at the time. It is being indicated to Shareholders that their investment will give them a return “at least as good as they might expect from a building society or bank”. Therefore the board must ensure that best endeavours must be used to achieve this as a minimum. 2. The profitability of the business. The rent for the first year will be nil due to the requirement to acquire and refurbish the pub. At the end of year two we envisage paying interest on share capital of up to 3% that will be met from the £15,000 rent. The directors will, however, review the financial performance of the business on a quarterly basis and if sales are lower than anticipated then the rent may be adjusted downwards. If the business has performed considerably better than had been expected then the directors may choose, (in consultation with the tenant and as allowed by the lease) to increase the rent and reward shareholders by awarding them a higher rate of return on their investment. This decision will have to be made in the light of the expected performance of the business in the following year and the need to invest funds in the expansion of the business. The rent will increase to £16,500 in year 3 and £18,000 in year 4. Following the end of year 4, a formula for reviewing the rent will be agreed with the tenant prior to their entering into a further tenancy agreement. This formula will ensure that the tenant has enough incentive to grow the business, but at the same time give the Society a fair share of this increased profit which will be reflected in increased return to our members. PREMISES COSTS AND FINANCIAL PROJECTIONS Purchase of the premises We have agreed in principle a purchase price for The Travellers Rest of £175,000. The legal and other fees associated with the purchase of the Pub will be in the region of £5,000 (legal and accountancy). This figure will be subject to final negotiation and agreement with the owner. A number of professional valuations have been undertaken over the past 10 years. Most recently, the SCPS Limited engaged the services of Mike Hughes who is a RICS qualified industry expert. This report which is dated 22nd February 2021 and provides a Market Valuation of the empty property of between £230,000 in its current condition and £275,000, the market value as a fully equipped operational entity. 20

The most recent professional valuation undertaken by Thomas Stevenson on behalf the owner is dated October 2015 and this values the pub at £200,000 closed and in its current condition.

An internal view of the most recent bar before the current owner removed the fixtures and fittings in preparation for refurbishment into a family dwelling

Costs of improvements to the building and decoration • Building works, Trading Areas and Back of House / Service areas The building is generally in good condition with the roof recently being replaced. The entire internals of the pub including bar, toilets, cellar, kitchen have been removed and there are some windows that also need replacing. The rear garden is also overgrown and in a poor state, needing a considerable amount of clearance and reclamation work. We estimate the alterations will cost in the region of £115,000. This cost includes all furniture and fixtures and fittings. It is anticipated that local members and residents will help refurbish the pub thus keeping costs to a minimum. Our estimate of costs is based upon a refurbishment rate in the range of £750 to £1,050 per m2. These rates have been established using industry data for like size and condition properties within other leased and tenanted pub estates. Based upon the total internal area of the ground floor of around 135m2 we therefore the estimated costs will be around the mid value of £850 per m2 c£115,000. • Tenant Living Accommodation There will also be some work required to finish the upstairs into a suitable living condition. The upstairs is in a generally good condition and the finish required would only add an estimated further £30,000. Therefore, we anticipate the total cost of refurbishment to be £145,000 and the total cost of acquiring the building and reopening it is estimated to be £325,000. Note, these costs are initial best estimates and subject to further review following a tender process. Whilst the initial target is to raise £325,000, the Society will continue to accept new members and investment after the building is acquired and opened, up to a maximum of £375,000. This will enable a reserve fund to be established and to allow for members’ withdrawals should they occur after the first 2 years. Any 21

additional funds above £325,000 have not been modelled in the Income , Expenditure and Reserves statement below to ensure the financial model is sustainable at a base case. The Society’s main sources of income will be the rent paid by our tenant. We anticipate that the rental income will be nil in year one, £15,000 in year two and £16,500 in year 3 and £18,000 in year 4. After that it will be set as a proportion of sales. This is assumed to be at 10% of net sales, which we anticipate will have reached £180,000 per annum by year four. If shareholders are paid between 2 and 3% interest at the end of year two, this will lead to a surplus of £0 for the first year, £4,860 for the second year, £6,075 for the third year and £7,290 in year four. These surpluses will be paid into a reserve fund and should grow to £18,225 by the end of year four. This is illustrated in the table below: Income, Expenditure and Reserves for the Society: Income Financial Year 2021 2022 2023 2024 Member Share Purchase (net) 275,000 0 0 0 Grant Aid 50,000 0 0 0 Loans 0 0 0 0 Rent 0 15,000 16,500 18,000 Bank Interest - - - - TOTAL 325,000 15,000 16,500 18,000

Expenditure Financial Year 2021 2022 2023 2024 Purchase of the Pub 175,000 0 0 0 Building Work, Repair and Decoration 145,000 1,000 1,000 1,000 Interest to Shareholders 0 7,500 7,500 7,500 Legal/Accountancy Fees etc, 5,000 500 500 500 Corporation Tax 0 1,140 1,425 1,710 Funds to Reserves 0 4,860 6,075 7,290 TOTAL 325,000 15,000 16,500 18,000

Reserves Financial Year 2021 2022 2023 2024 Funds to Reserves 0 4,860 6,075 7,290 Reserves Carried Forward 0 4,860 10,935 18,225

It is assumed that: • No interest is paid to members in year one • Interest is paid to members at a rate of up to 3% from the end of year 2 • Any membership withdrawals are replaced by new member investments • No loan funding is required • £50,000 grant aid received • No interest on reserves modelled 22

Creation of a village shop and other community facilities A key part of the community purchase of the Travellers Rest pub is to extend the services offered to match the community need. One such service is the provision of a small village shop. The provision of a village shop is seen as a further phase of this project which we will work closely with our tenants to incorporate this into the plans. The costs of incorporating a shop are unknown at this stage and will very much depend on which part of the building is developed as a shop. However, it is anticipated that once this has been determined and the costs calculated these will be met, entirely or in part, from grant aid. As an example, The George and Dragon Little Shop is operated by the Hudswell Community Pub Society Limited through volunteers and generates around £5,000 gross profit attributable turnover of c£25,500. However, it should be noted that most of the Hudswell Community Pub Limited’s income comes from rent which is currently £18,500 and therefore the financial success of the project is substantially supported by the rent receivable from our tenants We therefore believe that the financial business plan for The Travellers Rest is prudent and we could have the ability to grow Turnover and Gross Profit as the business matures through shop sales and rental growth. Furthermore, we will continue to review other essential services that could be provided to meet the community needs. We will regularly engage with members to review the performance of the pub and the society in meeting the community objectives and provide opportunity for open ideas to be presented and reviewed. PROPOSED TIMELINE The table below sets out the proposed sequence of events that will lead to the Travellers Rest being reopened in spring 2022:

2022

2021

Feb

–

Oct

-

July2021

April 2021 April –

2021 –

June Jan May2021 August Oct March2022 Launch Prospectus and gain pledges X Agree Purchase with Owner X

Gather funding X X

Acquire the Travellers Rest X Refurbishment and Tenant Recruitment X

Open the Travellers Rest X

REPORTING TO MEMBERS The Community Benefit Society is controlled by its members. Every member has one vote. All members will be provided with an Annual Report which sets out how the enterprise has developed its activities over the previous year and will include accounts. Members will also be invited to the Annual General Meeting at which the report will be presented and discussed. At each AGM, one third of the directors will retire and may be re-elected or replaced by new directors elected from amongst the membership. The rules of the Society also provide for a number of other ways in which the membership may hold the directors accountable for the running of the Society, including the calling of a special general meeting if this is required.

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FURTHER INFORMATION Additional Information is available on our website at www.thetravellersrestskeeby.co.uk This includes links to the online share application forms and the Society rules. If you would rather print off and post your share application, there is a link on the website to download the form or a copy on the final page of this prospectus.

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