Dear Supporter,
Review of AGM outcomes and discussion points
In summary, the outcomes of the meeting were:
- The 2021/22 financial accounts were approved.
- The auditor (The Alanbrookes Group Ltd) was approved for the financial year 2022/23.
- Should the £300,000 COF grant not be forthcoming, shareholders unanimously rejected the proposal to abandon the project and repay all shareholder funds.
- Shareholders unanimously approved the proposal to spend up to £30,000 in using professional help to proceed to the next stage of the project in which the Hop Pole can be reopened on a sustainable basis subject to financing.
- The management committee were given a unanimous vote of support and re-elected.
During the meeting, the key issues that we discussed included:
Cost inflation
The project cannot be wholly protected from inflation. The construction industry is witness to significant cost increases with some products quadrupling in price since the Hop Pole’s business case was written in January 2022. This knowledge didn’t however prepare us for the shock of a detailed cost breakdown we received last week in which the costs of our business case were projected to rise from £600,000 to £1,500,000.
A quick analysis of the numbers enabled us to reduce these costs to £1,100,000. This is still, however, a dauntingly high figure which we hope to reduce further though the careful design of the scheme and maximum engagement of volunteer labour and local trade support.
Community Ownership Fund grant
The £300,000 COF grant issued by the DLUHC in 2021 was the bedrock behind LSCBS’s strategy of reopening the Hop Pole but the grant’s match-funding requirement has held back progress by forcing the management team to ‘beg, borrow and steal’ in order to make progress without spending any money. The deadline for the COF announcement was 19th October 2022 but the political crisis in Westminster has resulted in this decision being delayed. Instead we’ve been informed the DLUHC “are working to provide applicants with an outcome as soon as possible”.
After considerable discussion, shareholders did not support the management committee’s recommendation that, should the COF grant not be forthcoming, the project should be abandoned and all shareholders be paid back their investment. Instead, the management committee were asked to continue with the project and will work hard to explore additional grant opportunities and revenue streams.
Next steps for the project...
The management committee was given a unanimous go-ahead by shareholders present to proceed with the project and spend up to £30,000 in using professional help to investigate all opportunities to reopen an economically sustainable pub and, if necessary, to come back to shareholders with a request for more capital. A shareholder meeting will be convened at the end of Q1 2023 to outline the revised goal of reopening the Hop Pole in 2024.
Thank you and stay in touch
Thank you again for your continued support and engagement with the project. The AGM opened up many interesting conversations for us and the level of interaction amongst shareholders is hugely encouraging.
Thank you again for your support!
Sally, Simon, Lucy, James, Jess, Tim & Nick
The Hop Pole Management Committee