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COMMUNITY SHARE OFFER
OPENING: 10am 16th December 2016
CLOSING: 6pm 3rd March 2017
Fundraising Target : £250,000
Minimum Required : £150,000
Minimum Investment : £250
Maximum Investment : £30,000
The Kings Arms, located in the urban village of Heaton, Bradford is up for sale. We
have the opportunity to purchase this much loved pub for community benefit.
You are invited to purchase community shares in The Kings Arms to ensure its
future as a traditional pub and to develop it for the many communities that could
use it.
Your investment will give you a stake in a professionally managed pub and
community facility that will create employment opportunities and provide space for
the arts.
AN INVESTMENT FOR GOOD!
HELP SAVE THIS HISTORIC PUB AND DEVELOP IT FOR COMMUNITY USE
The Kings Arms is the trading name of The Kings Arms Heaton Friends Limited, a Community Benefit Society
incorporated under the Co-operative And Community Benefit Societies Act 2014. Registered with the Financial Conduct Authority. Registered no: 7452
Due care has been taken in preparing this document which has been overseen and approved by the Directors who can vouch that the information it contains is in accordance with the facts and that there are no omissions likely to
affect its import.
Registered Office: The Kings Arms, 325 Toller Lane, Bradford, BD9 5BS
Share In The Kings Arms
This Share Offer Document: Provides you with details of the Save The Kings Arms project and its benefits for the
community Explains what a Community Share Offer is Gives you information about The Kings Arms Heaton Friends Limited Community
Benefit Society Invites you to become a member of the Society, by buying community shares and
explains the rights and liabilities of membership
The History The Kings Arms has been part of the heart of Heaton for nearly 200 years. Apart from serving the local
community, it has had a particularly good reputation for live music, drawing people from the locality and
further afield.
In recent years it has been owned by a large national pub company. Whilst a string of landlords struggled
to keep the business alive as a tenanted house with high costs, local residents organised music, quizzes
and pub games in the Kings Arms. This community spirit will continue to ensure the community business
thrives.
Following recent trends by large pub companies to rationalise their portfolio, it was closed in May 2016
and is currently for sale. Before its closure a group of local residents were successful in getting the busi-
ness listed as an Asset Of Community Value under the Localism Act 2011. This provision enforces a six
month moratorium on the sale of the pub, giving communities time to get into position to make an offer
to buy. The moratorium for the Kings Arms ended on 25th November 2016 and the owners are now free
to sell the property.
A public meeting held in the pub before its closure led to a “Save the Kings Arms” steering group being
formed to explore the possibility of purchasing the Kings Arms on behalf of the community. Subsequent
public meetings have reinforced the determination of the community to save the pub.
This is not a new concept and has been successfully achieved by over 50 communities across the country
to save their local pub by taking it into community ownership by which a large number of local people
(and supporters from further afield) buy shares and together raise the necessary finance. Community
pubs succeed because they are owned by and value their customers.
How we will do this…
We have registered a Community Benefit Society to raise capital by a community share offer, supported
by grants and business loans if needed, to enable us to buy, refurbish and re-open the pub as soon as
possible.
The target to be raised is £250,000. The Management Committee believes that this amount will give
sufficient capital for purchase and refurbishment, cover all necessary costs and leave enough to be held in
a management contingency to meet any unforeseen costs. Please note that the Management Committee
work is voluntary and unpaid.
The Kings Arms will be a free house with much reduced costs, serving quality alcoholic and non-alcoholic
drinks and providing function room space in a comfortable, friendly environment. It will be a community
asset and help build social cohesion in our multi-cultural urban village.
Please use the application form to buy shares in The Kings Arms Heaton Friends Limited, Community
Benefit Society. You may also download an application form at www.kingsarms-heaton.co.uk
Our Vision for the Kings Arms
Our vision is to have a community focussed pub at the heart of Heaton that will benefit the village
through greater social cohesion. We believe the pub will provide a comfortable and welcoming place for
people of different ethnicities, generations and life experiences to meet and undertake a range of
activities together that will generate increasing tolerance, understanding and a sense of community.
Our consultation has shown that the desired community uses of the pub include:
An attractive drinks offer including cask ales and craft beers, wines and spirits Non-alcoholic drinks, coffee and tea A regular live music venue for a variety of genres—pub rock, jazz, folk etc. Activities running in conjunction with existing community groups including book clubs and The
Allotment Society etc. Regular day and evening events e.g. pub games, quizzes, mocktail evenings, seasonal markets,
sporting events, film showings, speciality food evenings and beer festivals An information hub including access to computers, WiFi, and printers Space for local artists to display and sell their work Private room hire (with separate access) for parties and other events
Physical changes requested include: Refurbishment of toilets Refurbishment of kitchen General redecoration Beer garden and patio made more inviting for families Improved access for people with restricted mobility Business Management
We have looked at a number of different models for community pubs and have decided that the best business model for us is to grant a lease to an experienced tenant to run the pub as their business, supported by the Management Committee. We will offer a good but fair market rate rent and the tenant will be able to buy beer, goods and services on the open market. Tenanted free houses like this are sustainable businesses. Using this model, our cash flow planning shows acceptable profits for the Society which will be reinvested in the Society or other local community services as decided by the Members.
What is the Kings Arms Heaton
Friends Limited Community
Benefit Society?
The Kings Arms Heaton Friends Limited is
a legal society established to enable the
community of Heaton and its supporters
to purchase the Kings Arms. It is
registered with the Financial Conduct
Authority (FCA) under the Co-operative
and Community Benefit Societies Act
2014, as a Community Benefit Society
(Registered Number 7452). The Society
uses Model Rules which were developed
by the Plunkett Foundation
www.plunkett.co.uk
A copy of the Rules is available from our
website http://kingsarms-heaton.co.uk/
or on request from the Secretary at our
registered office. It is a not for profit
organisation which means that any
surpluses are re-invested into the
business, or distributed to other
community or charitable projects.
You become a Member of the Society by
buying shares. Members can attend,
speak and vote at members’ meetings,
volunteer skills for the refurbishment
and other work needed, stand for
election to the Management Committee
(unpaid voluntary positions), inspect the
share register and accounts of the
Society or just give The Kings Arms their
custom and support.
Membership is open to any person,
whether an individual, a corporate body
or the nominee of an unincorporated
association.
You can buy shares as a gift and pay from
your account. We will assign the shares
to your named recipient.
What is a Community Share
Issue?
This Community Share issue provides
you with the opportunity to contribute
financially, on a long term basis, to the
purchase and operation of The Kings
Arms. Whilst we expect the offer to be
taken up mainly by local people and
businesses, we also welcome investors
from further afield who share our vision
and values.
The shares you buy will give you
membership of The Kings Arms Heaton
Friends Limited, a Community Benefit
Society. Your involvement can be as
little as £250 and as much as £30,000.
Irrespective of the level of investment, or
the amount of time Members can give to
the Society, everyone has the same
voting rights.
Your investment will help to support a
truly local enterprise, accountable to the
community whilst serving and benefiting
it.
How Do I Buy Shares?
You can buy shares by completing the
application form and returning to our
registered office address 325 Toller Lane,
Bradford, BD9 5BS
On receipt of payment (cleared cheque
or bank transfer), your name will be
entered in the register of members with
a record of the number of shares
purchased. Share certificates will be is-
sued at the end of the share offer period
as long as the project proceeds. During
the intervening time all monies received
will be paid into the Kings Arms Heaton
Friends Ltd bank account and full records
kept.
Please use the unique reference
number on the application form as the
reference for your bank transfer or write
it on the reverse of your cheque.
You need to be at least 18 years of age to
invest. Shares will be sold at £1 each
with a minimum investment of £250. You
can invest up to a maximum of £30,000.
Selling Shares and Interest
Payments
After a minimum period of three years,
investors can apply to sell their shares
back to the Society for the price they
paid for them. This time period, and the
subsequent timing of repayments, is to
ensure the business has financial
stability.
From the second year of operation, if
there is sufficient trading profit, it is
proposed that investments from the
minimum of £250 will receive interest at
Questions
a rate to be approved at the Society’s
Annual General Meeting. Our financial
model is based on a rate of return of 3%
per annum.
The Management Committee may
release funds earlier, or delay
reimbursement of shares, or vary
interest rates. It has a duty to prioritise
the best interests of the Society. Shares
cannot be sold or transferred to another
person. Shares cannot go up in value.
Profits will be retained within The
Society and used to further its activities.
How much do we need to raise?
The maximum target for our share issue
is set at £250,000. The minimum that the
Society needs to raise from shares is
£150,000. Shares will be offered on a
“first come first served” basis.
What happens if we don’t raise
enough money?
If the total of share investments is not
sufficient by the end of the share offer
period the Management Committee may
extend the period of the share offer. If
the Management Committee decides not
to extend the offer period or if the sums
raised are still not sufficient at the end of
an extension, then all of the share invest-
ment money will be refunded within one
month of the final closure date.
To cover any shortfall in sums raised
through the share issue we will apply for
finance of up to £100,000 through a
combination of loans and grants from
the “More than a Pub” scheme
administered by the Plunkett Foundation
and Key Fund. We may also obtain
further funding by means of a crowd-
funding appeal.
Will it work financially?
The principal risk is that The Kings Arms
fails as a going concern. We understand
the risks and challenges so our business
plan addresses these risks and
encourages growth and diversification.
The business plan is available on The
Kings Arms website or on request to the
Secretary.
What are my risks if the purchase
goes ahead?
Shareholders have no liability beyond
the value of the shares they buy.
Please note the following important
points:
The Financial Services Compensation
Scheme, which applies to bank accounts,
does not apply to your share account.
As a member and shareholder of The
Kings Arms Heaton Friends Limited you
will own the Society and the Kings Arms
pub. If the Society is unable to meet its
debts and other liabilities, you could, in
principle, lose some or all of your
investment held in shares.
This community share offer does not
require authorisation from the Financial
Conduct Authority.
The funds in your share account are
withdrawable without penalty at the
discretion of the Management
Committee according to the Society’s
rules.
The Financial Ombudsman Service does
not apply to your share account or your
relationship with the Society, but any
dispute may be the subject of arbitration
as set out in the Society rules.
In the event of having to wind up the
Society, should the value of the Society’s
assets exceed the value of the share
capital, the shareholders cannot get back
more than their original investment. Any
excess value would be transferred to
another community organisation having
similar community benefit aims. This is
known as an asset lock and is to prevent
private gain if the organisation dissolves.
What is the timescale for the
project?
Our share issue is planned to run
between 10.00am on 16th December
2016 and 6.00pm on 3rd March 2017. If
our offer to purchase is successful, some
refurbishment will take place after which
the pub will re-open. We anticipate this
will be Spring 2017.
WHO ARE WE? The founding Management Committee Members of the Kings Arms Heaton Friends Ltd. have
volunteered to take The Kings Arms Pub into community ownership. They will stand down at the first General Meeting
following the distribution of shares. And the members will elect Directors, by the rules of the Society, to serve on the
Management Committee of the Society.
Sonja McNally—Chairperson
Sonja is an avid and committed campaigner
and dedicated promoter of the interests of the
residents of Heaton.
Former director of two companies, she has
recently completed courses on Governance
and successful fundraising, so she brings a
wealth of much needed experience and exper-
tise to the campaign to Save The Kings Arms.
Her involvement with the campaign began right
at the beginning in 2014, when she spearhead-
ed the (successful) move to get the pub listed
as an Asset Of Community Value.
Sonja now chairs the Management Committee
and brings her formidable organisational skills
as well as her knowledge to the table.
Ingrid Dzerins—Secretary
Ingrid Dzerins has lived in Heaton Village for
30 years.
Her two eldest daughters worked at the Kings
Arms and both obtained their personal licenses
whilst there.
She is experienced in governance, having
spent the last 15 years supporting a number of
boards, and brings that particular experience to
the Management Committee.
She wants the Kings Arms to come back as the
family friendly heart of the village it used to be
and especially looks forward to the return of
music nights.
Graham Robinson—Treasurer
Graham is a company accountant for a firm in
Lancashire, although he (fortunately) lives in
Gods Own County.
A committed amateur thespian, he
nevertheless brings much needed sanity and
expertise to the financial aspects of our cam-
paign to Save The Kings Arms.
Phil Copland—Vice Chairperson
Phil is an experienced Software Developer /
Project Manager and is currently Managing
Director of a local IT Consultancy company.
He has lived in Heaton for over 15 years, and
over that time has seen the closure of 4 pubs
(including the Kings Arms). He got involved
with the campaign in 2014, during the commu-
nity application to have the Kings Arms made
an Asset of Community Value.
He sees the local pub as a vital resource,
providing the much needed ‘third place’ –
“important for civil society, democracy, civic
engagement, and establishing feelings of a
sense of place.” (The Great Good Place, Ray
Oldenburg (1989, 1991)).
He also likes going to see the bands, and blow-
ing the froth off a few pints now and then.
Dave Marshall—Committee Member
Until fairly recently, Dave had been a resident
of Heaton for over 30 years. However, despite
moving away he was a regular visitor to the
Kings Arms until it’s closure.
Prior to his retirement, he was a Catering
Manager for one of West Yorkshire’s largest
employers. He currently gives up his time as a
trustee for The Peter Greenwood Memorial
Trust, which helps deaf students – as well as
the many hours he devotes to the Management
Committees work!
Dave is involved with the campaign because he
believes that the community of Heaton needs
its local pub, a place to meet friends, listen to
music, play quizzes etc..
Andrew Heyes—Committee Member
Andrew, although not a resident of Heaton (he
lives in Bingley – we don’t hold it against him
though!), has been one of the most ardent and
vocal supporters of our campaign since day 1.
Serving as the Pubs Officer for the Bradford
branch of CAMRA (Campaign for Real Ale), he
campaigns tirelessly to promote the protection
of pubs throughout the region via social media
etc.
He was one of the first members of the
Management Committee because, in his words
“I want to be a part of this group of local people
who are trying their very best to purchase The
King’s Arms in Heaton because pubs are very
dear to me, and this is another part of our
history and heritage that I feel we must do our
very best to preserve”
Kerr Kennedy—Committee Member
Kerr Kennedy moved to Heaton in 2008.
Until his retirement earlier in 2016, he was
employed at Bradford CVS where he provided
development support to voluntary and
community organisations working with children
and young people.
He has several years experience as a director
of national and local charities and is the current
volunteer Campaigns Officer of CAMRA in
Bradford. He is passionate about protecting
pubs and would like to see his local pub thrive
once again and become a model for pubs in
the community.
Bob Cannell—Committee Member
Bob has lived in Heaton for 30 years and
believes we have a special place here with The
Kings Arms at the heart of it.
He recently retired from a career spent in
cooperative businesses, helping people to set
up and run cooperatives – businesses owned
and controlled by their members to provide
themselves (and others) with the goods and
services they want.
“If I don’t know something ‘coop’ I know
someone who does. I know The Kings can
thrive as a community owned cooperative”.
Jagtar Bhatoa—Committee Member
Jagtar Bhatoa is a solicitor who has worked in
his own practice in Bradford for more than 30
years.
He has many years experience of working as
a board member of a housing association and
also in the NHS.
He is a resident of Heaton and considers that
a community owned Kings Arms would be of
benefit to the people of the area.
Martin Bond—Committee Member
Local Sculptor, Martin Bond, was a regular at
the Kings Arms for over 15 years.
Martin has been involved in co-operative
ventures for many years and his experience
includes a food co-op in Baltimore (USA);
Lewisham Arthouse and a tenant's
cooperative also in London, and, nearer to
home, the Manningham Mills Community
Association which fought to rescue the mill
when it was derelict.