Pontefract Heritage Partnership Ltd
Business Plan
2014
Prepared by the Social Enterprise Support Centre Ltd
Contents cover:
1)Executive summary (see below)
2)Background to the organisation
Mission, Vision, Values
Options appraisal summary
3)Strategy
Core business over the next three years
Understanding how to unlock value
4)Service development
Core services
Sub contracted services
Service development
Quality management
5)Marketing strategy
Background
Competitor analysis
Sales strategy
Communications strategy
Pricing strategy
Stakeholder analysis and targeting/segmenting markets
6)Finance
Start up costs
Sources of income
Cash flow forecast for 5 years
Sensitivity testing
Costing model to inform a pricing strategy
Notes to the finances
7)Risk assessment
Business continuity plan
8)Leadership and management
Governance
Staff development
Partnership policy
Executive Summary
This business plan covers the period from January 2014 to December 2016. It is a plan to develop the Pontefract Dispensary and Hermitage currently part of the NHS estate and available for transfer to the Pontefract Heritage Partnership Ltd created in December 2013. The company is limited by guarantee with the intention of becoming a registered charity once income is being generated. The charitable objects of the organisation are:
- To acquire preserve and exhibit the Pontefract Dispensary and Hermitage for public benefit;
- To develop historical records;
- To advance education by the establishment of a museum; and
- To promote civic pride in the area of benefit.
The dispensary is currently in disrepair and conservative estimates of restoring the building into use stand at £1.8 million. Access to the 12th century hermitage underneath is via the dispensary. It is anticipated that once restored the dispensary will offer 600 square metres on each of three floors and will lend itself to a range of uses.
Following community consultation and local research it is proposed that revenue generation within the premises could be by a combination of activities: renting managed workspace on the top floor and creating rental income; museum and exhibition space on the first floor creating visitor revenues, special events interest and room hire; retail sales revenue on the ground floor together with a café and Saturday market in the rear car park.
The governance arrangements in section 8 set out how the company will be governed and how funds and day to day activity will be managed.
Target turnover for the project once fully operational is £108,000 underpinning £97,000 of costs.
Section 1: Background to the organisation
The Pontefract Heritage Partnership Ltd has been created to protect the Pontefract Hermitage and Dispensary and has evolved from the PDHAG constituted group.The founding directors volunteered tocreate the new company to prepare for the receipt of the Dispensary building under an asset transfer from the NHS.
Pontefract General Dispensary was founded in 1812 and was originally located in Sessions House Yard, later moving to Baxtergate and then in 1880 to its present site on Southgate. Pontefract Dispensary (later Pontefract General Infirmary, PGI) was a voluntary general hospital that was established and maintained by public subscription until 1948 when it was absorbed into the NHS. Throughout the 20th Century PGI expanded down the north slope of FriarwoodValley towards Friarwood Lane and Slutwell Lane. PGI closed in 2011 when acute hospital services were transferred to the new Pinderfields Hospital, and the buildings on the north slope of Friarwood Valley were demolished shortly afterwards, leaving only the Dispensary on Southgate.
Beneath the Dispensary is the medieval hermitage and oratory, a Grade I listed heritage site, accessible only from the Dispensary, which is not a listed building, although it is registered as a building of local interest and is located within the Button Park/Friarwood Conservation Area.
Following the closure of PGI and its demolition in 2011, there is concern for the future of the site, and in particular, the Dispensary and Hermitage, both of which are important for the town’s heritage. The site and buildings remain in the ownership of the Mid Yorkshire Hospitals NHS Trust, but it needs to be emphasised that it was the local community that originally funded and built the Dispensary for the improvement of local health care. If the NHS has no further use for the building to deliver local health services, then in fairness to the people of Pontefract, it should be made available in safe and sound condition for the benefit of the local community.
Options appraisal summary
The various legal forms of not-for-profit companies were discussed and it was agreed by the committee that the most appropriate form would be a company limited by guarantee and registered charity.
It was recognised that the members may need to access charity funds and to fundraise to support the maintenance of the site and to take advantage of the development opportunities available such as Big Lottery and other charitable trust funds.
The charitable objects of the organisation are:
- To acquire preserve and exhibit the Pontefract Dispensary and Hermitage for public benefit;
- To develop historical records;
- To advance education by the establishment of a museum; and
- To promote civic pride in the area of benefit.
Mission
To create sustainable, enterprising community-led partnerships to protect local heritage buildings for public benefit
Vision
Unlocking the value of our community asset legacy for the full benefit of the community
Values
- Respect for local history and heritage
- Engagement with the community to create involvement and ownership
- Community led
- Transparency in all that we do.
Community Benefits
- encourage respect and awareness of our local history and heritage;
- creation of training and employment opportunities by the provision of building, land and work space on favourable terms;
- Working in partnership with a range of stakeholders including community and private companies;
- Creation of economic benefit locally.
The Building is on 3 floors with approx 600 sq metres on each floor.
Strategy
The organisation will develop a range of primary purpose activities to generate revenues to be both viable and sustainable.
This will include charity fundraising, the sale of products and services, and events and social activities.
Core business over the next three years
Understanding how to unlock value
Key activities aligned to local priorities and those of funders.
Systems in place to capture information that creates evidence base of achievements
Reporting and communications in place to tell stakeholders of the value created and success.
Service development
Step one is total completion of the building to be able to provide services
Planning stage
In order to complete the transfer of the building the following must be developed:
(As per letter from Philip Harvey of MayOne Architects).
- A full condition survey will be required along with asbestos, archeological and other surveys.
- Planning and building regulations approvals will be required, utilities connections works.
- A full design team will be required
- The building work would be procured by competitive tender
The stages involved in developing the concept are described by the architect as follows:
Prices do not include VAT. The estimate for the building work is approx £1.8 million.
Core services
To be developed further as work of the feasibility progresses
Activity – for discussion and expansion
Income / Amount / Notes1 / Catering/Café / 35000 / based on £700 per week
2 / Retail Sales / 15000 / based on £300 per week
3 / Saturday Market / 4800 / based on £100 per week
4 / Events & social activities / 5000 / based on £100 per week
5 / Fundraising/charitable activities / 25000
6 / Managed workspace / 18000 / based on 6 units x £60 per week
7 / Room rental / 3000 / based on £60 per week
8 / Visitor Donations / 2500 / based on £50 per week
9
10
Total target earnings / 108300
Estimated expenditure to service above income generation is approx £131,000 see finance section.
Sub contracted services
The feasibility study needs to explore the potential for leasing space to other businesses
Partnerships with other museums/leisure?
Service development
Charity funds will only be awarded for new work and direct project costs. There will be a need to form local alliances with education, parents, history groups etc to create the opportunity to use the facilities in the delivery of a range of projects
Quality management
Quality systems will be embedded a s services are developed and overseen by the sub committees using stakeholder feedback.
Marketing Strategy
Background
Location
The busy market town of Pontefract is located in the heart of West Yorkshire. Pontefract forms one of the five towns in the Metropolitan Borough of the City of Wakefield and is within easy commuting distance for Leeds, Doncaster and Wakefield.
The market town is some 12 miles south east of Leeds and 8 miles east of Wakefield. It is approximately equidistant between both York and Sheffield, 20 miles north and south of the town respectively.
The town benefits from excellent transport connections:
- The A645 leads directly to the national motorway network via the A1(M) and M62 at Ferrybridge 2 miles away.
- Rail services to London Kings Cross are available with a fastest time of under 2 hours.
- The town and surrounding district are well served by numerous local bus services.
- Leeds/Bradford airport is approximately 20 miles to the north west.
Demographic & Economic Profile
Pontefract is an historic market town dating from the Roman era, also known for its medieval Norman castle and the famous liquorice Pontefract Cakes. The town still has two major producers of the famous liquorice sweets, namely Haribo and Monkhill Confectionery (part of the Cadbury's Group) and has held the vibrant annual Pontefract liquorice festival for the past 16 years.
Pontefract has overcome a former reliance on traditional industries and the demise of the coal industry in the region in the 1980s. During the late 1990s the economy of the region was transformed by the various European and Government funding initiatives which led to a diversification in the employment base. Many major firms have been attracted into the area and service industries are now the main employers accounting for some 70%of employment (with 17%in financial & business services – PROMIS).
PROMIS estimate that the total population within the Pontefract primary catchment area is 78,000, similar to the small town average. The per capita spending levels are comparable to the PROMIS average and the town is projected to see close to average growth in population over the period 2010-15.
The town has a full market onWednesdays and Saturdays, along with a smaller market on Fridays, and the indoor covered market is open all week.
Pontefract also has a popular racecourse just to the north west of the town, regarded as the largest circular flat racecourse in Europe.
Retailing In Pontefract
The total provision of town centre retail floorspace in Pontefract is estimated at 440,000 sq ft, which is comparable with the Small Town average (PROMIS). The town is ranked by PROMIS as 43rd on the PMA Retail Provision Indicator and 15th on the PMA Fashion Score.
The prime shopping area for Pontefract is focused around Salter Row, Market Place,Woolmarket and the southern section of Beast Fair.
All of the streets are fully pedestrianised and an outdoor market operates in Market Place on Wednesdays and Saturdays. The popular indoor market operates Monday to Saturday (inclusive).
There are many national multiple retailers located in the town centre including;WH Smith, Home Bargains, Dorothy Perkins, Phones 4U, Marks and Spencer Simply Food, Boots, Argos, Tesco, Morrisons andWilkinsons amongst others.
There are over 975 short and long term car spaces (both off street and on street) operated by the local authority in and around the town centre. In addition to this there are two large car parks providing parking for over 700 cars immediately to the north of the subject location, adjoining the Morrisons and Tesco supermarkets providing customer parking and access directly in to the town centre.
According to the Office for National Statistics, the percentage of Yorkshire's population aged 16 to 64 having no qualifications in 2012 was 11.5%, compared with 9.9% for the UK as a whole. The unemployment rate was 8.9% in the second quarter of 2013, compared with 7.8% for the UK. And the famously thrifty residents have less in their wallets then the average Brit, with gross disposable household income (GDHI) of Yorkshire and the Humber residents £13,800 per head in 2011, compared with £16,000 for the UK for the same period. Average weekly wage £447
Branding
The range of activities being developed and delivered by PHP Ltd will need branding in such a way as to create a brand family for the company. For example:
The Hermitage
The café
Museum/exhibition space
Retail Unit
Business space
Further work is required to trial ideas with stakeholders.
Competitor analysis
Pontefract hosts a local museum funded through Wakefield District Metropolitan District Council. The Dispensary will be differentiated from the local offer in order to
raise expectation of local amenities and be perceived as a good place to visit.
Competition for reducing family disposable income and decisions will need to made regarding: admission fees; frequency of visits (ie ensuring people return); and average spend per visit.
Communications strategy
An annual comms plan will be created using the template in the appendix to ensure all stakeholders have access to information. Media will include newsletter, website, facebook, twitter and local press.
Sales strategy
Each core activity hosted in the building will have its own branding and marketing strategy. This will ensure income generation is not dependant on one sole activity and will protect the company against seasonal variation.
Launch events will be planned followed by special offers to incentivise people to visit. A range of special events will then be planned across the year to rotate activity and maintain public interest. Sales targets will be set for visitor numbers, revenue generation and sponsorship where appropriate.
Pricing strategy
Stakeholder engagement
In the pre feasibility stage a public meeting was held in Pontefract Methodist Church (which is an accessible town centre location with parking and DDA)
Stakeholder / Process for engagement / Method used to provide assurance that engagement is complete /accurate / Number of people/ organisations involvedBusiness community
Public / Public consultation session and questionnaire administered to individuals / Follow consultation session planned to collect feedback
NHS Estates / Meetings between NHS and PHP representatives
Local branch of Archaeology Society
Local Authority Councils – Town Centre Planning
Other related community groups
Finance
Total Year 1EXPENDITURE
Staff Costs
Salaries / 28,064
National Insurance / 2,696
Staff Sub-Total / 30,760
Operating Expenses
Project costs (stock) / 25,800
Printing & Stationery / 480
Telephone & Comms. & IT / 730
Marketing / 4,800
General Expenses / 4,320
Operating Expenses Sub-Total / 36,130
Premises Related Costs
Rent / 1,000
other maintenance / 8,550
Heat, Light & Water / 9,000
Premises Related Sub-Total / 18,550
Overheads / 11,500
Total Expenditure / 96,940
Income
Catering/Café / 35,000
Retail Sales / 15,000
Saturday Market / 4,800
Events & social activities / 5,000
Contracts??
Managed workspace / 18,000
Room rental / 3,000
Trading Sub-Total / 80,800
Visitor Donations / 2,500
Fundraising/charitable activities / 25,000
Charitable Sub-Total / 27,500
Grants
Grants Sub-Total / 0
Total Income / 108,300
Surplus/deficit / 11,360
Start up costs
Sources of income
Cash flow forecast for 5 years
Sensitivity testing
Costing model to inform a pricing strategy
Notes to the finances
Risk assessment
Business continuity plan
KEY / LOW / MEDIUM / HIGHLEVEL / Main Risks / Potential Impact / Mitigating action
Unable to recruit new team members /
- Delay to achieving production targets
Induction Training and training plans in place
Use existing capacity to deliver programme until trained staff in place
Loss of key people /
- Project loses impetus
- Potential failure of business
Low risk of being headhunted
Policies and procedures in place to mitigate accident/injury absence
Poor Performance Management /
- Performance slips jeopardising success of business
Effective team meetings to ensure awareness of performance requirements and issues
The Board meets frequently to review performance
Complaints/Conflict with Clients /
- Loss of confidence in business to deliver
Complaints resolved promptly in line with procedure
Regular feedback updates to all clients
Impact of recession /
- Reduces opportunities & attainment of targets
Active marketing campaign to promote Enabled business
Strong support from key stakeholders
Initial pressure on cash-flow /
- Unable to fulfil business obligations
Asset rich
Support from bank & potential overdraft/credit facilities if required
Poor external organisation buy-in /
- Lack of support for business
Build on existing relationships and trust
Review feedback continuously
Unable to attract new business / Business failure / Positive engagement of key stakeholders
Active marketing campaign to promote the business
Section 8: Leadership and Management
Pontefract Heritage Partnership Ltd is a company limited by guarantee and registered charity is applied for.
The structure of the organisation is as follows: