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.