SHARE

OFFER
INFORMATION PACK
&
DECLARATION OF
INTEREST
IN PURCHASING
COMMUNITY SHARES


www.friendsoftheadmiralshead.org.uk


Become a part of history

Whether you’ve known The Admiral’s Head for as long as you can
remember, or you came to know it after it closed, most of us agree
that it holds huge potential for our community. Sitting as it is,
unloved and idle, we hope that our village pub going coming up for
sale marks a turning point.

But the journey to re-opening the doors of The Admiral’s Head

won’t be easy.

Alongside the purchase of the building, funds need to be raised to

renovate the dilapidated building, address the sewerage problem
and install a new kitchen where there currently is none. We’ll also
need to raise working capital that will support the pub as it regains
its customer base and reputation as a quality village pub.

We hope that these funds will come from a mix of community share
purchases, grants and gifts, and loans that together will raise the
£450,000 needed.

In this booklet you will find the history of community efforts to save
The Admiral’s Head, alongside our vision for the pub moving
forward, and community responses to our survey.

There is also information about community shares, what they are

and how they work, and we hope that you will be inspired to pledge
to buy shares using the form at the back of the booklet.

Your pledges to purchase community shares in the pub are vital in

making our bid to purchase the pub viable and credible.

Your declaration does not constitute a commitment to invest

and any pledges to purchase shares at this stage are non-
binding.

Should you have any questions, you can find out more on our
website at www.friendsoftheadmiralshead.org.uk or by emailing
shares@friendsoftheadmiralshead.org.uk

Thank you

Friends of The Admiral’s Head


Community Shares Raise Target

We seek to raise £350,000 in community shares

That’s equivalent to 280 people investing £1,250 each

Pledge to invest by Sunday 27th October*

Minimum investment £50

* We can accept pledges until 17th November 2019 ahead of our
bid submission on 23rd November 2019. Early pledges will assist
our efforts greatly!





Our story so far

The Admiral’s Head pub in Little Bealings, Suffolk was once a
successful rural pub, much-loved by the local community that spans
the closely connected rural villages of Little Bealings, Great
Bealings, Playford and Culpho, walkers along the Fynn Valley, and
visitors from nearby Martlesham, Woodbridge, Kesgrave and
beyond.

From first pints to first jobs, wedding receptions to wakes, and

through major national days of remembrance and celebration, the
pub has been at the heart of the community. A space without
agenda, where all were welcome, the pub served customers from
it’s opening in the 1700s until its closure in 2012.

When the pub closed, it was listed

as an Asset of Community Value. It
retains this status today thanks to
pressure from the local community
maintained through the owners’
appeal in 2018, and a (refused)
planning application for change of
use to a dwelling.

During the time it has been closed, appetite for the pub has
remained. Regular pop-up pubs in Bealings Village Hall have
continued to grow in popularity and offering, and have served as a
focal point for those wanting to see The Admiral’s Head re-opened.

The owners finally advised East Suffolk Council of their intention to

sell the pub in May 2019, and via the local parish council, the
community registered its intention to bid to buy it. This triggered
the community’s ‘right to bid’ and prevents any other sale until 23
November 2019.

On Friday 28 June, the community open meeting was attended by

more than 80 people from across the four villages and beyond.
More than 70 people responded to a questionnaire indicating
support for the project and many have volunteered to help and
many more have indicated interest in purchasing community
shares.

Friends of the Admiral’s Head is made up of those who attended the

open meeting and subsequently volunteered to be part of the team
to lead preparation of the community bid. We are in the process of
registering as a Community Benefit Society (CBS) that will be able
to launch a formal share offer to the community.

Although we will market our community share offer more widely,

the democratic governance structure of the CBS will ensure that
local people will remain in control of the society and its pub.





Putting The Admiral’s Head Pub back at the
heart of our community

The results of our survey were clear:

Our community has already lost too many assets, and we lack a
sense of togetherness and cohesion. The pub has the real
potential to be a space to come together to enjoy good food and
drink, to reverse the rising rates of loneliness and social
isolation, and to increase access to amenities, and it's worth
fighting for.

“This will be the only place in the village which will be open
for ad hoc meetings… [The pub] will be somewhere for
villagers to meet and chat with no agenda.”

[The pub could help]… make life more interesting in the

village and give daily activity for some who may not be able
to go far. I get very nervous about socialising with people in
the village. [Maybe] this would help me and my family
develop friendship within the village, something we don’t
have now.”

“The pub is one of the few places where the community can
get together, share news, comments and encourage
wellbeing.”

Our vision is that a thriving, community-owned Admiral’s Head

would be ‘more than a pub’. We want the pub to return to its place
at the heart of the community; a place to meet and socialise and to
enjoy great food and drinks, whether for special events or just
informally on the spur of the moment.

We want to offer a changing menu of good quality pub food and

drinks. We also want to provide a base and lunchtime venue for
walkers and cyclists enjoying the beautiful Fynn Valley path, and
evening pub events such as quizzes, music, and themed food nights.
We also hope that - in time - a community shop may open on site.

We envisage that the pub’s car park will offer much needed parking
for the village school, and for the adjacent Angela Cobbold Hall and
All Saints Church. We hope to work with and complement these
village spaces and the Bealings Village Hall to provide a wide range
of venues, events and services that cater for and appeal to all.

When it comes to running the pub, we are committed to a

professionally run pub. Our preferred option is to secure an
experienced tenant who shares our vision to run the pub over the
long-term.




Results and Outcomes of the
Community Survey

1. What would make you a regular visitor to The
Admiral’s Head?

This question was phrased in terms of a list of services, amenities

and spaces, and how important the respondent felt they were. Free
WiFi, live music, classes, activities, groups and events, and a shop
with fresh and local produce were rated as the most important of
the list. Big screen TV and showing televised sports were deemed
overall ‘unimportant’.
Two factors were related to the pub car park rather than the pub
itself. Just over 50% of respondents rated parking for the school as
important or very important. 40% rated parking for other local
facilities as important or very important – though a further 40 %
ranked this as neither important nor unimportant. The top 3 other
reasons for using the pub car park were the Angela Cobbold Hall,
the Church, and walking groups, cyclists and other visitors.

2. How Often Would You Visit and What For?

“Drinks” was the most popular reason, with 72% of respondents

saying they would visit at least twice a month. The others in order
of popularity were:

• dinner – 52% would visit at least twice a month

• daytime café facilities – 39% would visit at least twice a month
• lunch – 31% would visit at least twice a month
• breakfast – 26% would visit at least twice a month
• refreshments at school drop off / pick up – 11% would visit at
least twice a month.





3. Helping to return the pub to use

Over half the respondents would buy shares and almost a quarter
are prepared to make a donation. Four people are prepared to
make a loan. Eight people offered other help – mainly time and
labour to tidy and renovate inside and outside the pub.

4. Challenges facing the community

Over 75% of respondents felt “Loss of 'togetherness' as a

community (community cohesion)” is a key challenge.
Other high scores were 63% citing “Loss of community assets” and
52% “Rise in loneliness and social isolation”.
5. Support for Groups or Activities at the Pub (25
respondents skipped this question)

Group Gardening was the most popular activity from the survey list,
followed by Parent & Toddler activities. Plenty of other suggestions
for events were made e.g. music events, sports teams and pub
games teams.
6. How could the pub have a positive impact on your life?

The 3 most popular responses were all to do with meeting and

spending time with other people.
7. Anything else to be communicated or comments about
the project?

31 respondents added further comments and suggestions – all but 4

were very positive. Perhaps the main message received is not trying
to do too much:

“You want a pub at the centre of the community,

not a community centre.”




Feasibility and Business Planning

A significant part of the initial feasibility and business planning has
been to consider:
1) How much do we need to raise?
2) What are our affordable financing options?
3) How will we run the pub?

How much do we need to raise?
In understanding this we have undertaken the following:
• Commissioned a Royal Institution of Chartered Surveyors (RICS)
certified valuation by a company expert in the Pub and Leisure
Industry;
• Commissioned a condition survey to look at essential repairs
that need to be carried out;
• Looked at equipment and upgrades to facilities needed for the
pub to reopen;
• Estimates are subject to further confirmation;
• We have prioritised minimum works required;
• We have assumed that volunteers from the community will
carry out a significant proportion of the works not requiring
qualified tradespersons, with only materials supplied by the
project;
• We have assumed that the purchase price for the pub will be no
greater than the RICS valuation. There is no guarantee that this
will be acceptable to the vendor;
• Costs for legal and other expenses in relation to the purchase
are included;
• Costs of capital has been included
• Sufficient working capital to enable the weather the early period
of the plan is also included.
Based on this methodology, as a realistically workable minimum:
We will need to raise a minimum of
£450,000





What are our affordable financing options?
In looking at this we have considered:

• Community Shares,
• Charitable grants and social investment loans,
• Support from local parish council/s through the Public Works
Loan Board;
• Commercial loans.
The conclusion to this is that the project will only be viable if it has
strong support from the community for a Community Share Offer
and affordable capital through at least some of the following
sources: charitable grants, social investment and/or support from
local parish councils through the Public Works Loan Board.
Commercial loans and repayment terms make the project unviable.
Our next steps are submit expressions of interest to prospective
funders and to finalise a detailed business and community benefit
plans on which our eligibility to access funds will depend.
The detailed business and community benefit plans will also form
part of the Community Share Offer.

Financial forecast
The two high-level financial forecasts on the next page plans
illustrate the pub’s performance over ten years running the pub
through a tenant under two possible financing options. This
forecasts are presented for illustration purposes only.

• Option 1: £350k of community shares, £100k More than a Pub

loan/grant
• Option 2: £250k of community shares, £100k loan/grant from
More than a Pub and £100k support through Public Works Loan
Board.

Option 1 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

Rent Receivable1 0 13,750 27,500 27,500 27,500 29,000 29,000 29,000 29,000 29,000

Expenses

Insurance 2,000 2,060 2,122 2,185 2,251 2,319 2,388 2,460 2,534 2,610

Building Maintenance 0 1,000 2,000 3,000 3,090 3,183 3,278 3,377 3,478 3,582

Professional Fees 2,000 2,060 2,122 2,185 2,251 2,319 2,388 2,460 2,534 2,610

Total Direct Expenses 4,000 5,120 6,244 7,371 7,592 7,820 8,054 8,296 8,545 8,801

Total finance
9,428 9,428 18,178 18,178 18,178 18,178 18,178 8,750 8,750 8,750
repayments


Total Expenses 13,428 14,548 24,422 25,549 25,770 25,998 26,232 17,046 17,295 17,551

Profit / Loss -13,428 -798 3,078 1,951 1,730 3,002 2,768 11,954 11,705 11,449

Cumulative total -14,226 -11,148 -9,197 -7,467 -4,464 -1,697 10,257 21,962 33,411




Option 2 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

Rent Receivable 0 13,750 27,500 27,500 27,500 29,000 29,000 29,000 29,000 29,000

Expenses

Insurance 2,000 2,060 2,122 2,185 2,251 2,319 2,388 2,460 2,534 2,610

Building Maintenance 0 1,000 2,000 3,000 3,090 3,183 3,278 3,377 3,478 3,582

Professional Fees 2,000 2,060 2,122 2,185 2,251 2,319 2,388 2,460 2,534 2,610

Total Direct Expenses 4,000 5,120 6,244 7,371 7,592 7,820 8,054 8,296 8,545 8,801

Total finance
14,660 14,660 20,910 20,910 20,910 20,910 20,910 11,482 11,482 11,482
repayments


Total Expenses 18,660 19,780 27,154 28,281 28,502 28,730 28,964 19,778 20,027 20,283

Profit / Loss -18,660 -6,030 346 -781 -1,002 270 36 9,222 8,973 8,717

Cumulative total -24,690 -24,344 -25,125 -26,127 -25,856 -25,821 -16,599 -7,626 1,091





About Community Shares

Community shares are a great way to support community
businesses, providing them with the long-term finance that they
need to start and grow.
Investing in a community share scheme should be seen as a long-
term investment and is focused on supporting a community
purpose rather than making a financial gain.
By investing in a community share scheme, the following benefits
may be available to you:
Have a vote. Each shareholder is entitled to one vote (no matter
how many shares are owned), and to stand for election to the
management committee at the Annual General Meeting (AGM).
Shareholders can also use the AGM to express views or concerns,
provide feedback and ask questions.
Share interest payments. These will be set out in the business
plan, which will accompany our formal share offer. Interest
payments do not normally kick in until
the business has been trading for several years. Annual interest
payments are limited by law to not more than the Bank of England
Base Rate plus 2%, and in any event, not more than 5%. Interest
would be paid gross and, depending on members’ own
circumstances, may be taxable. It will be the member’s
responsibility to declare any such earning to HMRC if applicable.
Tax Relief. There are three schemes that may be applicable to our
community share offer: EIS – Enterprise Investment Scheme, SEIS –
Seed Enterprise Investment Scheme and SITR – Social Investment
Tax Relief.

We are currently unable to confirm if either of these tax relief
schemes will be available as part of our community share offer, but
we are working with HMRC to confirm this position.
Withdrawal of shares. Subject to surplus funds being available, we
will allow for an element of share withdrawal by members after a
period has passed, for example after five years following the share
offer (other than in certain exceptional circumstances such as
death and bankruptcy). Withdrawals will only be permitted if
sufficient surplus funds exist, and then only at the discretion of the
Management committee. This is consistent with the expectation
that investing in the community pub is a long-term investment in
the community rather than for financial gain.

For more information about community shares, visit
www.communityshares.org.uk/guide-investing-community-shares

Information About Our Community Shares

The Bealings and Playford Community Pub Ltd. is currently being
registered with the Financial Conduct Authority (FCA) as a
Community Benefit Society, set up with the aim of purchasing and
re-opening The Admiral’s Head pub in Little Bealings.
We anticipate that the purchase of the pub, its renovation and other
working capital costs will be funded by three main sources:
- Community shares
- Grants and gifts
- Loans

In order to meet the bid deadline of the 23rd November, we need to
gain support from the local community in the form of pledges to
purchase community shares in the Society.

A business plan and formal share offer will be published shortly.

In the meantime, Friends of The Admiral’s Head wishes to invite
declarations of interest to invest. A significant level of interest will
greatly assist our business planning, as well as continuing to
demonstrate to the vendor of the pub and potential funding bodies
that there is a high level of community support for buying the pub.
To declare an interest in purchasing shares in the Society, please fill
out the form on the other side of this sheet of paper and return it to
Friends of The Admiral’s Head, 2 Richards Drive, Little Bealings,
IP13 6LR

Your declaration does not constitute a commitment to invest

and any pledges to purchase shares at this stage are non-
binding.
Once the business plan is available and the formal share offer is
launched, you can decide if you still wish to purchase the
community shares you have declared an interest in.
Data Protection: The security of your personal data is very
important to The Friends of The Admiral’s Head. Please see our
website for our Privacy Notice at
www.friendsoftheadmiralshead.org.uk/privacy-notice. You can ask
for your data to be removed from our records at any time by
emailing secretary@friendsoftheadmiralshead.org.uk

Declaration of Interest in Purchasing

Community Shares

Title: First Name: Last Name:
Address:

Email Address:

I wish to declare an interest in purchasing community shares in
Bealings and Playford Community Pub Ltd.*. Please indicate the
value of the shares you are interested in purchasing (minimum
£50):

£50 £250 £500 £1500
£5000 £10,000

Other amount (please specify):

Your declaration does not constitute a binding commitment to
invest.

The security of your personal data is very important to Friends of
The Admiral’s Head. Please see our website for our Privacy Notice
a secretary@friendsoftheadmiralshead.org.uk

Please send your completed form to: Friends of The Admiral’s
Head, 2 Richards Drive, Little Bealings, IP13 6LR

*Bealings and Playford Community Pub Ltd. is in the process of

being registered with the Financial Conduct Authority (FCA)

Frequently Asked Questions

How much needs to be raised to save the pub?

We estimate that at least £450,000 is needed to buy the pub, carry
out essential repairs and renovations, re-equip the pub and have
working capital to support the business through its first few years.
This figure is based on an RICS valuation of the business, alongside
other surveys, research, information and guidance.

What is the target for community shares?
We seek to raise £350,000 in community shares. That’s equivalent
to 280 people investing £1,250 each. Pledge to invest by Sunday
27th October*

Is The Admiral’s Head a good investment?

As you can see from our financial forecasts, our aim is that the pub
will be profitable. However, investing in this project is about
investing in our community and the vision for the pub, rather than
making a profit.

What is the minimum investment?

Each share is worth £1, and there is a minimum investment of £50.

Will I receive interest on my shares?

Full details of share interest will be set out in the business plan,
which will accompany our formal share offer but by law annual
interest payments are limited to not more than the Bank of England
Base Rate plus 2%, and not more than 5%.

How will you run the pub?
We are committed to a professionally run pub. Our preferred
option is to secure an experienced tenant who shares our vision to
run the pub over the long-term

Will I get a say in how the pub is run?
Each shareholder is entitled to one vote (no matter how many
shares are owned), and to stand for election to the management
committee at the Annual General Meeting (AGM). Shareholders can
also use the AGM to express views or concerns, provide feedback
and ask questions.

How do I get my money back?

Full details of withdrawals will be set out in the business plan and
accompanying formal share offer. We will allow for an element of
share withdrawal by members after a period of time has passed, for
example after five years following the share offer. Withdrawals will
only be permitted if sufficient surplus funds exist, and then only at
the discretion of the Management Committee.

* We can accept pledges until 17th November 2019 ahead of our
bid submission on 23rd November 2019. Early pledges will assist
our efforts greatly!




Thank you for your support in
bringing The
Admiral’s Head Pub
into community ownership.

www.friendsoftheadmiralshead.org.uk
shares@friendsoftheadmiralshead.org.uk