When: 20 January 2025, 8pm
Where: County Buildings – Map link
Present: Craig Hamnett, Pete Dobson, George Moore, Dave Cannon, Julie Willan, Tracey Warman + 53 Members
Apologies: Pennie Cumming, Gillian Wray, Nadine McGaw, Kate Brown, Jan Winder (Member)
Agenda and Minutes
1. Welcome and Apologies
Apologies were received from committee members unable to attend.
Intro and welcome from Craig who confirmed the intention to have a monthly members meeting until AGM at which point all management positions will be up for proposal and voted on by members.
2. Update on building purchase
There is no completion date for the property as yet due the issue over rear access/boundary. Defacto Access on the left hand side at the rear is in place with the potential that this strip of land could be purchased from the current owner.
3. Bar/Kitchen update
David mentioned that the current owner Jack has allowed the committee access to the building allowing plans to be made for which thanks were given.
David is coordinator of the Bar Committee and introduced others who are part of the Bar committee Nadine, Julie, Gillian and Nick who is a Stranraer pub owner + manages the bar at the rugby club. Nick is acting in an advisory role and has given some great insights. Discussions with Heineken have taken place and full details given as to why we are approaching this brewery. Scott Ferguson is the Heineken Sales Rep and has visited the Wigtown Ploughman. All equipment will be “FoC” and maintained by Heineken. Kegs are dearer but the benefits of the system used by Heineken (Smart Dispenser) outweigh the extra cost of the kegs. There is also a possible investment available from Heineken (£10k which would be a loan). Other breweries also spoken to along with local brewery 5 Kingdoms. Julie and Nadine have a meeting with Britvic and Coca cola on 21st January.
David also detailed the kitchen availability (second hand at extremely good condition). We didn’t have the funds available but we have been offered a loan by an anonymous donor. Some of the equipment is duplicated which we can sell, and therefore half the loan will be repaid. We have therefore secured the kitchen which is also being delivered for free. Craig commented that the purchase of the kitchen allows us to offer light meals, pizzas etc at the beginning of the phasing. Explained that when opportunities arrive, we can sometimes change direction to take full advantage.
4. What are Subcommittees and how you can get involved
We are forming subcommittees – currently we have Bar (Dave), Fundraising (Pennie), Funding (Pete), Membership (Julie). We will be wanting to form a volunteer and staff committee. We are
hoping that within the Members, we may have people willing to offer their time and experience to run and be active within the committees which will then allow all the processes to be streamlined and focused by separating out the various aspects.
The warm space is in the first phase and this can be done almost immediately to offer teas/ coffees and we are interested to know what groups and individuals will use it. Licenses and permits will be required for the bar and kitchen which could take a month after property becomes ours.
5. Community Share Offering
Craig introduced the Share Offering. All members present had been given a copy of the share offering booklet which included the application form and the Legal Section.
Craig reiterated that the building is secured with the grant, but does not cover up start up costs. Therefore we are looking at fund raising – eg co-op raffle, barrel of booze. We now have a lotteries license which allows additional means of fundraising.
The share offering is hoped to raise the bulk of the funds. 51% of shareholders must live in DG8, but we do have interest from overseas individuals. It has to be confirmed that any monies from the shares are at risk, although shareholders will only be responsible for the value of the shares held. 5 year investment during which we hope to be able to offer between 2% and 5%. After 5 years, shares can be applied for withdrawal (although no guarantee that shares will have accrued interest or withdrawal can be confirmed). We are striving to ensure that we do generate enough revenue to keep enough reserve to allow the withdrawal request.
There is a 6 week window for the share offer with the closing date being 3rd March. There may be further opportunities in the future but all the research shows that we have every good chance of having a successful offering and a profitable business which should mean that the venture comes self funding.
Benefits – you will be allowed to vote, and to join sub committees and vote for management. You also get a shareholding certificate. All the research shows that we have every chance of having a successful offering and a profitable business.
The minimum investment for a share is £25, This was to make it as accessible to as many people as possible. We would like the pub to be for everyone and we feel that by knowing that you have a share in the pub will give a good feeling.
PHASING
Phase 1 The warm space – The minimum revenue we require is £5k to allow the opening of the warm space. We do have options if we don’t reach the targets from share holding.
Phase 2 is the main thing that has changed since the last meeting. In addition to the bar the unexpected purchase of the kitchen equipment gives us further opportunities of offering a simple menu, although we will still be reaching out to local providers.
Phase 3 Furnishings of the bedrooms will be required and we will hope to have a sub committee made up of members who will then be able to bring their proposals to the management committee for overview.
Restaurant is the final phase. We want to have apprenticeships for hospitality and catering and will be working with the colleges to provide training. This will again require a subcommittee. Providing training to young people also opens up opportunities for additional funding from sources that focus on these.
If we reach the goal of funding all the phases via the Share Offering we can proceed with all the phases, but we do have contingencies if the ultimate goal is not reached.
FINANCIALS
Based on the premise that year 1 is assuming we reach the £92k required to start. These projections were reached by speaking to local hostelries and research to get to what is an achievable forecast. We have built in projections to give worst case scenarios which gives a view erring on the side of caution. Costs were overestimated to ensure that we were not being too optimistic.
Income per month shows the fluctuations of trade expected for the area. During the Winter, businesses close and this is reflected in the month on month financials. We would want to stay open fully to offset the high season against the off season with losses offset by the gains. We do not want to close during the low season as we are a community offering and want somewhere available every day. We want people coming from afar to know that there is something is open. This may have a knock on effect of other businesses opening more frequently during the low season. It is anticipated that during the off season, more volunteers will be used to keep costs minimal.
FAQs
Personal information for shareholders is anonymous. Only George (treasurer) Craig (Chair) will be the only people that will know who/how many shares purchased.*
(* Amendment to meeting in that the Secretary will need to maintain a register of members and shareholders)
You can not sell your shares – community shares are non transferable but can have a named successor in the event of your death (after Year 5)
Shares do not increase in value although we hope but can not guarantee that interest will accrue within the 5 years.
Insolvency – shareholders are only liable for the value of the share they hold. We will accept donations if a shareholding is not required.
Craig thanked the Members for the interest and support shown so far and hope that it has been seen that we have shown commitment and have been overcoming obstacles along the way.
6. Date and time of next Members’ meeting
Monday 24th February, 8pm venue TBD.
7. Member questions, ideas, and AOB
Question 1 (Nic) – Confirmed you don’t need STL if you have an Alcohol license.
Answer 1 – We are currently in the process of transferring the licenses to the management with 6 actively seeking to become license holders. Thanks for the info – we are looking for experience from within the members!
Question 2 (Andrew) – What consideration has been given to getting a commercial enterprise in to run?
Answer 2 (Pete) – The whole premise was to have a community run pub. As such it is important to separate out the day to day running and the commercial side . The day to day running will have a sub committee with experience and expertise to be brought in to keep it as a community run outfit – although this could change in the future if it was put to a vote. We do have the option to go commercial or community – the funding does not restrict us. The Kenmuir Arms Hotel in New Luce was a community pub – the community funded the building but it was then passed over to a commercial entity and it appears to be struggling as the community doesn’t seem to use it. We want the community of Wigtown to feel that they are represented and have a vested interest in the success. We will always look at being agile and adaptable to what the future brings
Question 3 (Paul) – Can you be a member without being a shareholder?
Answer 3 – Yes. The membership fee of £1 is not withdrawable but you do have the same voting rights.
Question 4 – Shareholding has been confirmed it won’t increase in value, but what happens when the asset increases in value?
Answer 4 – Community shares are different to ordinary shares, so if any profits are made, they will be reinvested into the community. Largest expense will be employment. We are not profit driven, but should we start making a larger profit, we would reinvest in the community. We will need to ensure that we have funds available for payback of shares after 5 years should people want to withdraw. There could be a future share offering if we needed to but it would have to be for a particular purchase or reason. FCA determines that community shares can not increase in value. Share application to be sent to Craig or George. Once pledged, the management committee will have a meeting and look at the anonymous share offering and at that point the pledged amount will be required. Details will be on the website. Shareholding can also be completed online.
Meeting closed with thanks to the attendees at 9.20pm