Siop Gymunedol / HAVARDS / Community Shop

MORE INFORMATION

This page contains more information about the project and about the investments you can make to assist.

Please give your views!
You can still complete our survey.

Community Support

In early 2022 we ran a community survey, which demonstrated huge evidence of community support for the project. Almost 200 people returned our survey form (either online or in writing) and of those 97% were fully supportive of the project. 5% of responses were "maybe" and noone was opposed. The survey also produced 67 offers of help. Many thanks to all who completed this survey, which has provided valuable information and ideas for us. One other benefit is that we now have evidence to show potential grant providers that this is truly a venture wanted by the community for the community.

Investments

You can now invest in Havards - see our INVEST page. Your share holding will help us purchase the shop which is already viable and unlock grant funding to retain and improve it to its full potential and ensure the business is a success. We aim to maintain and improve it as a successful trading post serving both the local community and visitors to the area. With your help we can raise the funding and prepare SIOP Havards for a new beginning. Why not sign up to volunteer, be part of this exciting venture?

Your return

Havards is already a profitable business. In return for your financial support, you will receive a return on your investment, when profits allow. More than that though, we are confident that when you visit you will be rewarded by an open, friendly, warm and welcoming shop that lies at the heart of its community and reflects all those who live in Tydrath and the surrounding area.

Internal View of Havards

Inside Havards - an Aladdin's Cave!

Shares are being sold to individuals, companies and interested parties at £1 each with a minimum holding of 200 shares and the maximum of £33,000 or 10% of the total share capital raised, whichever is the greater in the case we raise more than £330,000.00

We would like to ensure that no-one is excluded from becoming a shareholder and member of this Community Benefit Society and therefore provision has been made for those who would prefer to slowly build up a holding. This is the Share Save scheme. Details are on the INVEST page.

Interest: Our intention is to pay interest, and shareholders will be able to opt for one of 3 tiers of interest – 0%, up to 2% and up to 4%. You might want to consider opting for 0% interest if you want to support the enterprise and maximise distribution of funds to the community. Those opting for 2% interest will receive 50% of the value awarded to the 4% interest group at the AGM. You will be making a greater contribution to the community by opting for the lower rate. The maximum interest payable is 4%, but it may be less and will be dependent on trading and reserves.

After completion of two full years of trading, and if the business is running successfully and has sufficient surpluses, we plan to pay annual interest on members' shares. The Board will submit a recommendation regarding interest payments on shares for the approval of the Annual Members’ Meeting. Small payments of interest under £10 may be made through vouchers redeemable in the Havards.

Irrespective of your shareholding volume it will be on the basis of one member, one vote (not one vote per share).

If insufficient funds are raised to go ahead, we will seek every effort to find a way to proceed as defined in the Share Offer Document. If we are not successful then all funds will be returned to shareholders, minus a small deduction for administrative costs funded by the committee (estimated to be less than £2000 in total).

What is a Community Benefit Society?

References: Cooperatives UK and this blog.

A Community Benefit Society (CBS):

When and how can I sell shares?

Shares: Shares must be sold back to the CBS at the issue price. Shares must remain invested for a minimum of 3 years in order to get tax relief. We plan to offer to buy back shares, if asked, once the Community Benefit Society (CBS) is operating profitably, subject to FCA rules.

How will I get SITR? (Social Investment Tax Relief)

UPDATE (8th August): HMRC has given us advance assurance status, but made the stipulation that only the first £300,000 is available. We have now reached this limit. We regret that new investors and investors who have not yet paid will not be eligible for SITR, as this is on a first paid basis. However, this is still an attractive investment as you can request up to 4% interest. Investors who requested SITR and who had paid prior to 8th August will be eligble to receive SITR subject to final HMRC approval.

The Havards Project has gained advance assurance status for social investment tax relief (SITR) from HMRC. This means that HMRC are happy that we meet the criteria for SITR and should give us full certified SITR status 4 months after we start trading.   Thus investing in Havards should give you an excellent return. In addition to the annual interest that you can gain on your investment, if you have chosen it, the following benefits come from SITR:

Note that investments must be for at least three years to qualify for SITR. We have been in close contact with HMRC and the only stipulation they have given us is that only the first £300k invested in Havards is available to SITR.

What is the risk?

Please note that Community shares are at risk and you could lose some or all of the money you invest. You have no right to compensation from the Financial Services Compensation Scheme, nor any right of complaint to the Financial Ombudsman Service.

PLEASE NOTE: The directors and committee members are not financial advisors nor qualified to offer financial advice. The above notes should not be relied upon to make an investment decision; you are strongly recommended to seek financial advice from your qualified financial advisor for your specific circumstances.