Financing Social Enterprise

Transcription

1 Financing Social Enterprise A Youth Engagement Support programme for young people with learning needs at Lurgan YMCA. A loan from UCIT is assisting the organisation to develop sustainable income streams. Social Impact and Financial Highlights 2016

2 69M MILLION LOANS APPROVED TO CHARITIES AND SOCIAL ENTERPRISES

3 Chairman s Report Over the last 15 years, Ulster Community Investment Trust (UCIT) has provided funding to over 400 community organisations, charities and social enterprises who realistically would not otherwise have had access to loan finance. This has helped create employment, attract investment, bind communities and stimulate economic activity, in areas often marked by social or economic deprivation. During 2016, UCIT and our subsidiary business in the Republic of Ireland, Community Finance (Ireland), approved loans of just over 6 million to 70 third sector organisations across a wide range of sectors, geographies and communities. In many cases, absent the support of UCIT, our clients would have struggled to achieve their investment ambitions. In response to the need to further develop and widen the provision of social finance to the third sector in Northern Ireland, UCIT together with Building Change Trust have put in place a new 350,000 loan finance initiative. Building Change Trust was established in 2008 by the Big Lottery Fund with a National Lottery grant of 10 million. This new fund provides small unsecured loans of 1,000-25,000 to assist the needs of smaller community based organisations who undertake so much important work in all areas of our society. I am also very pleased to report that Belfast Charitable Society has committed a further 350,000 to this fund and together with a contribution from UCIT has allowed it grow to 1 million. Belfast Charitable Society is Belfast s oldest and one of its most respected charities and UCIT is proud to be associated with it. These small loans can be used for a wide variety of purposes, including buildings and repairs, equipment purchase, making facilities more energy efficient, funding shortfalls in larger grant assisted projects, creating employment or indeed any legitimate need that might arise within the community groups. In December 2016, Economy Minister Simon Hamilton MLA congratulated the NI Small Business Loan Fund as it hit more than 5 million in new loans. The Small Business Loan Fund was launched just over four years ago to provide access to finance for small businesses, sole traders and partnerships which are keen to develop their business, but find it difficult to access funding through traditional sources. It is managed by our subsidiary Ulster Community Investment plc on behalf of Invest Northern Ireland and delivered in partnership with Enterprise Northern Ireland. Access to finance is often the main obstacle for businesses starting up and growing. It is estimated that the Small Business Loan Fund has helped its clients generate an extra 26.5m in sales and create 144 new jobs across 260 companies which is a small but important step in helping our economy to grow. The Fund is still open with facilities of up to 50,000 available. As a revolving fund it s expected that between 7m and 8m will be made available in total over the Fund s lifetime. I am delighted to further report that all independent reviews completed in relation to the performance of the Fund to date have been extremely positive. Finally, I am very grateful to the staff at UCIT and my colleagues on the Board for their enthusiasm and support. Aidan Sloane, William Patterson and Audrey Murray resigned from the Board during the year. I would like to thank them for their contribution to the Executive Board and wish them well in their future endeavours. Alan Moneypenny, Chairman Ulster Community Investment Trust (UCIT)

4 UCIT assisted the community arts festival, Féile an Phobail, with working capital support to pay front ended 2016 festival costs

5 Chief Executive s Report SMEs and social enterprises are the bedrock of Northern Ireland s economy, but it is proving increasingly difficult for business promoters in these sectors to secure finance from traditional sources. During 2016, Ulster Community Investment Trust (UCIT) approved loans of 3.7 million to a wide range of third sector organisations across Northern Ireland. By way of brief example, we assisted Portglenone Enterprise Group purchase a historic building in the centre of the village which will be developed to provide office space and business units for new, start-up enterprises. We provided Slack Press, a young digital media social enterprise with a loan to upscale their business and we released funds to Clonoe Rural Development Agency in County Tyrone to acquire land to extend their community facilities. We were also very pleased to provide a number of charities with loans to enable them to develop income generating activities. Support was provided to Avert Enterprises - the trading arm of Foyle Women s Aid - to enable the establishment of a beauty and holistic therapy service. All profits from this social economy business will be used to support victims of domestic and sexual violence in the city. A loan was provided to Destined to enable them to purchase a private taxi firm in Derry. The acquisition of the taxi business will enable Destined to offer specialist accessible transport to the learning disabled whilst continuing to offer affordable general taxi services to the wider community. Our business in the Republic of Ireland also continues to flourish. During 2016, UCIT s subsidiary company, Community Finance (Ireland) approved loans of 2.9 million to 30 third sector organisations. This trend is expected to continue with the appointment of two further team members Rose Hally in the Connaught/Munster region and Barry Symes in the South Dublin/Leinster area. We wish them well in their new roles in Community Finance (Ireland). Our successful management of the 5 million Small Business Loan Fund on behalf of Invest Northern Ireland has ensured over 260 loans have been approved to date. Our economy is critically dependant on small business, and access to finance is central to its ability to survive and grow. The Small Business Loan Fund has encouraged business growth through new product development, export sales and employment. Interim external evaluation reviews have concluded that not only is the Fund operating satisfactorily in process terms but that it is delivering the economic objectives for which it was set up in the first place. In conclusion I would like to express my thanks to the staff and the Directors on the Boards of UCIT and Community Finance (Ireland) for their continued commitment in making UCIT the successful organisation it has become. Harry McDaid, Chief Executive Ulster Community Investment Trust (UCIT) We were delighted to further extend our reach by partnering with the Building Change Trust and Belfast Charitable Society in the development of a 1m finance initiative to help us meet much needed demand for smaller unsecured loans from within the third sector. The loan fund aims to match the needs of local communities, and be flexible and responsive in its delivery. I am delighted to say a number of organisations have already availed of this facility.

6 Achievements M loans approved to 40 organisations in Northern Ireland 2.9M loans approved to 30 organisations in Republic of Ireland Bad debt provisions (excluding inherited bad debts) 2.1% Achievements M Loans approved to over 400 charities, community organisations and social enterprises

7 Distribution of our Third Sector borrowers 51M NI Loan approvals M RoI Loan approvals

8 Case studies Northern Ireland Pictured are Harry McDaid, Chief Executive of UCIT and Harry Latimer, Chief Operating Officer, Blythswood Ireland Ltd. at the organisation s warehouse in Ballyclare Blythswood Ireland Ltd UCIT has supported a number of existing or past clients with new or increased loan facilities to enable them further expand their enterprises, increase their workforce or increase their social impact. Blythswood Ireland Ltd has received four loans from UCIT over the past six years aggregating 683,000. These have been used to purchase warehousing and to open shops across Northern Ireland, most recently in Ballymoney. Blythswood Ireland currently has 17 full-time employees, four part-time employees and a sizeable volunteer base. Since 2010 the support we have received from UCIT has been incredible. The loans have eased the pressure on the charity financially and allowed us to focus on providing help to those that need it most here in Northern Ireland and in our overseas projects. We currently have seven retail outlets across the eastern region of Northern Ireland. The latest round of funding from UCIT allowed us to purchase a shop unit in Ballymoney together with an adjoining vacant unit and adjacent ground with planning permission. In order for us to help more people in need, we need the generosity of people and the support of organisations such as UCIT. Harry Latimer, Chief Operating Officer, Blythswood Ireland Ltd.

9 Cookstown Enterprise Centre Cookstown Enterprise has been supporting small business development in Mid Ulster for almost a quarter of a century. A core area of the company s business is the provision of business accommodation to rent for local start-up and expanding enterprises. With the assistance of a loan from UCIT the organisation has purchased and brought back into use a vacant and derelict town centre building. Mary Monaghan, Property Manager at Cookstown Enterprise, confirmed: With the support from UCIT, today the ground floor houses four separate business ventures with further commercial and residential accommodation located on the first and second floors. This is an innovative and extremely successful property development project supporting the retail and service sector locally. The directors, management and staff at Cookstown Enterprise would wish to thank the Board of UCIT for offering the loan facility and supporting the continual development of the organization in the Cookstown and Mid Ulster region. Jim Eastwood, General Manager Cookstown Enterprise Centre Photo: Helen Flowers, a small business located within Cookstown Enterprise s town centre development

10 A loan from UCIT assisted the Bloody Sunday Trust during the redevelopment of the Museum of Free Derry Bloody Sunday Trust Established in 1997, Bloody Sunday Trust (BST) is a community-based education and human rights organisation. Alongside supporting the families of those killed and wounded on Bloody Sunday, the organisation work to advance education and raise awareness through the historical preservation and presentation of the period that led to this event. The Trust has recently completed a major redevelopment of its flagship project, the Museum of Free Derry, to include a Ground floor extension and development of a new first floor. The project necessitated a move to temporary premises, and a subsequent drop in income. There were also a number of additional costs relating to the building project that had to be met by the Bloody Sunday Trust. The loan from UCIT was invaluable in helping us to meet these extra costs, deal with the drop in income, and get us through to the point where we are fully operational again in our new building. We are very grateful for the help that UCIT gave us. Adrian Kerr, Manager, The Bloody Sunday Trust

11 Our Investment in the Third Sector Arts & Heritage Enterprise & Workspace Sports 2.2m into 27 organisations 14.8m into 78 organisations 5.7m into 53 organisations Childcare Faith/Church Education & Training 1m into 16 organisations 2m into 9 organisations 2.3m into 23 organisations Community Services Housing Environment Tourism 6.4m into 71 organisations 2.2m into 10 organisations 1.8m into 12 organisations 4.6m into 36 organisations

12 Case studies Republic of Ireland Third Space Dublin s redevelopment in the early 21st century produced new living spaces and new working spaces but few neighbourhood gathering spaces few third spaces. Third Space is a social business venture set up to open and run eating and meeting places in the redeveloped areas of Dublin that lack community hubs. By day, Third Space provides a welcoming inexpensive eating hub for residents and workers. In the evening the premises provide valuable space for local groups to gather for a wide range of cultural and community activities. "Community Finance (Ireland) has been a real help to us. A one stop shop for social enterprise funding at rates and timescales that understand our needs - we would highly recommend them..." Tom Slattery, Director, Third Space Ltd Photo: Third Space, a social business venture set up to open eating and meeting places in the redeveloped areas of Dublin that lack community hubs

13 Illies Golden Gloves Boxing Club acquired a loan facility from UCIT s subsidiary company, Community Finance (Ireland), to upgrade their premises Illies Golden Gloves Boxing Club Company Ltd Illies Golden Gloves Boxing Club is a community based, non - profit organisation, which aims to foster a culture and an environment that encourages participation in boxing, identifies talent and supports all to reach their full potential. Since opening in 1998, the Club have boasted considerable success with many of their boxers winning Donegal (112), Ulster (65) and National (30) titles. The group acquired a loan facility from UCIT s subsidiary company, Community Finance (Ireland), to upgrade their premises. The new modernised facilities will host international tournaments, health and fitness classes and training, serving to further strengthen the social impact of the club and its successes. Going back five years, the Committee realised that the Club had outgrown their existing premises at the Old School house and began looking for an alternative facility. Thankfully, through a lot of perseverance and guidance from the staff at Community Finance (Ireland) we were able to finance a new premise at Lisfannon with an array of facilities to cater for a range of abilities. On behalf of the club, I sincerely wish to thank Community Finance (Ireland) for all their assistance in getting us to where we re at today. Sadie Duffy, Hon. Secretary, Ulster Boxing Council IABA

14 Third Sector Loan Approvals 2016 Northern Ireland Community Arts Partnership Bloody Sunday Trust Avert Enterprises Limited Ti Chulainn Ltd Ballyvea Football Club Forkhill & District Development Association An Muileann CIC Nos na Gaoithe VOYPIC/Include Youth Workspace (Draperstown) Ltd Ardoyne Youth Enterprises Stewartstown Road Regeneration Project Limited Exceed Worldwide The Resurgam Community Development Trust Shorts Sports & Recreation Club Brocagh and District Regeneration Group Ltd Slackpress Youth Sport Omagh Feile an Phobail Down Business Centre Richhill Buildings Preservation Trust Love Hockey Ireland Rathgael Gymnastics and Tumbling Club Annaclone GFC Fintona Regeneration Initiative Ltd Strabane Training Services Ltd Loughgall FC The Brain Injury Foundation Bogside and Brandywell initative Springfield Charitable Developments Specialisterne NI CIC Sticky Fingers Lurgan Rugby Football and Cricket Club Portaferry Sailing and Social Club Ballygalget GAC East Belfast Enterprise 174 Trust Step by Step NI Republic Of Ireland Hook Heritage Ltd O Cualann Housing Alliance Bailieborough Shamrocks GAA Club New Ross Community Hospital Ballintubber GAA Club Inland Waterways Association of Ireland Birr Development Company Ltd O Cualann CoHousing Alliance Cork Counselling Services Ballyhea GAA Club Craughwell Athletic Club Hospitality Hand on Heart Training Centre CLG Dungarvan United AFC Philipstown Community Centre Brickens Logboy Tulrahan Housing Association Ltd Strokestown Community Playgroup Ltd Ballyfermot Family Resource Centre Ltd Mount Nugent GFC Steadfast House Ltd Thirdspace The Linenhall Arts Centre Company Ltd Crusheen GAA St Matthews Boxing Club Ltd Rosslare Harbour Railway Social Club Lough Lene Gaels GAA Club Mullagh Community Park Development Ltd Abundant Life Christian Church BASIC Child Care Centre Ballinamere GAA Club Oxfield Sport Centre Ltd John F Kennedy Trust Ltd

15 NI Small Business Loan Fund ( 5M Loan fund managed by UCIT on behalf of Invest Northern Ireland) At December M Total volume of loans provided 264 Number of loans dispersed 20,583 Average loan amount Loans approved by County DERRY /LONDONDERRY FERMANAGH ANTRIM Total number of loans approved 22 ARMAGH DOWN TYRONE 202Existing businesses 77Start up businesses

16 The Northern Ireland Small Business Loan Fund is managed by Ulster Community Investment plc (UCI) on behalf of Invest Northern Ireland. During 2016, Belfast-based Teamwear Ireland received another 27,000 from the Fund to support future growth.

17 Directors and Staff Directors Northern Ireland Alan Moneypenny Chair Chair of Finance and Audit committee, Riverside Theatre Damian McAteer Vice-Chair Director of Waterside Development Trust Dermot McGale Retired Regional Director of First Trust Bank Seamus McAleavey Chief Executive of NICVA Dr Arthur Mitchell MBE Company Secretary/ Founder Trustee/Director of Mourne Heritage Trust Thelma Armstrong MBE Board Member of Ulster Provident Housing Association Erskine Holmes OBE Chair of Lagan Navigation Trust Jim Malone Director/Founder Member of Ardee Community Development Company Audrey Murray MBE* Business Development Manager of LEDCOM Michael McGarrigle Secretary of Council for the West Douglas McIldoon Secretary of NI Co-operative Forum Seamus O Prey Chief Executive of ORTUS Group William Patterson* Chief Executive of Greater Shankill Community Council Aidan Sloane* Head of Training, Belfast Met *Resigned from the Board during the year of 2016 Directors Republic of Ireland Alan Moneypenny, Chair Chair of Finance and Audit committee, Riverside Theatre Dermot McGale Retired Regional Director of First Trust Bank Henry Brennan General Manager, Coolock Community & Enterprise Campus CLG Paddy Harte Economic and Social Development Consultant Member of the Board of the International Fund for Ireland Director of Comhaltas Dhrioghlainne Chontae Dhún na ngall Teo Kevin Helferty Director of Buncrana Credit Union Ltd Jim Malone Director/ Founder Member of Ardee Community Development Company Dr Arthur Mitchell MBE Founder Trustee/ Director of Mourne Heritage Trust Michael McGarrigle Secretary of Council for the West Seamus O Prey Chief Executive of ORTUS Group Andrew Ward Joint CEO Inishowen Development Partnership Northern Ireland UCIT Harry McDaid Chief Executive Barry Connolly Finance Director Phelim Sharvin Associate Director Sandra Cowan Office Manager Trudi Dunbar Marketing Executive Emma Thompson Personal Assistant/Administrator Republic of Ireland Community Finance (Ireland) Donal Traynor Associate Director Marie Carpenter Office Administrator Rose Hally Client Relationship Executive Barry Symes Client Relationship Executive

18 Accounts 2016 UCIT - Consolidated Statement of Financial Activities for year ended 31 December Incoming resources Charitable activities (797) (725) Net operating income Bad debts (provided) / recovered (71) 76 Foreign exchange movement 183 (69) Net movement in funds UCIT - Consolidated Balance Sheet as at 31 December Fixed assets Tangible assets 8 9 Investments Current assets Debtors: amounts falling due after more than one year 12,416 10,784 Debtors: amounts falling due within one year 3,260 2,796 Cash at bank and in hand 4,118 3,860 Creditors: amounts falling due within one year (923) (808) Net current assets 18,871 16,632 Total assets less current liabilities 19,059 16,836 Creditors: amounts falling due after more than one year (3,515) (1,584) Net assets 15,544 15,252 Funds of the Charity Share capital Unrestricted income funds 15,520 15,230 Total charity funds 15,544 15,252

19 UCIT provided Torrent Valley Initiative, Donaghmore, with a loan to extend and make improvements to the Torrent Complex: a 2.4 million community hub comprising sporting, arts, employment and community facilities

20 Financing Social Enterprise Ulster Community Investment Trust Ltd (UCIT) Linenhall Street Belfast, BT2 8AA T F E: info@ucitltd.com Community Finance (Ireland) Unit 16, Ardee Business Park Hale Street, Ardee, Co Louth, A92 XN79 Tel/Fax +353 (0) ISO 9001 Registered Quality Management Ulster Community Investment Trust Ltd ( UCIT ) is an Industrial & Provident Society (IP No. IP374) and is registered as a charity in Northern Ireland (Charity No. NIC100325). Ulster Community Investment Plc ( UCI Plc ) (Company No. NI030229) is authorised and regulated by the Financial Conduct Authority (FCA No ) and has Interim Permission to perform Consumer Credit Lending (IP No ). NI Small Business Loan Fund LP ( NISBLF LP ) is a Limited Partnership (NL000075). It is authorised and regulated by the Financial Conduct Authority and has Interim Permission to perform Consumer Credit Lending (IP No ). The registered address of UCIT, UCI Plc, and NISBLF LP is Linenhall Street, Belfast, BT2 8AA. Ulster Community Investment Trust (Ireland) Ltd t/a Community Finance (Ireland) (Company No ) is registered as a charity in the Republic of Ireland (Charity No ) and it s registered address is Unit 16, Ardee Business Park, Hale St, Ardee, Co. Louth.