Profit & Loss Projections

 

As shown in Table A, the AD plant will begin to generate an income by year 2, at which point share withdrawals and interest payments will start to be made to the Members. Share withdrawals will begin in year 3.

 

Regular share withdrawals and interest payments will then be made throughout the lifetime of the project, in accordance with the income generated from the AD plant.

 

 

Table A indicates that approximately £250k will be paid to investors each year on average, from year 2 until the full amount owed is repaid. This means that a member who originally invested £1,000 (£100,000) will receive roughly £200 (£20,000) per year, until they have been paid all amounts owed, at which point they will have received just over £1,500 (£150,000) during the full 10 year repayment period. The regular payments will consist of both share withdrawal and interest payments, although the proportion corresponding to interest payments will naturally reduce (along with the outstanding amount owed) towards the end of the scheme.

 

As shown above, the financial projections indicate that all the Members will have received all share withdrawal and interest payments within a predicted 10 years.

 

Table B shows the anticipated profit and loss account, demonstrating the effect of operating efficiency on income. 75% efficiency corresponds to power generation of 187kW. As a financial incentive, if the plant runs at over 75% efficiency then the Farmer will receive 50% of any additional profit. Conversely, if the plant runs at less than 75% efficiency, all losses are recovered from the Farmer. This protects the Co-operative from under-performance.

 

Contact Information

Terms & Conditions

Copyright 2015. Lower Park Farm Co-operative Ltd

Lower Park Farm Co-operative Ltd,
c/o COWS-Hub Ltd, Lodge Farm, Commonwood, Holt, Wrexham, LL13 9TE.

 

 

Investors should remember that the value of an investment and the income received from an investment can go down, and they may not get back the amount they invested. Investors should ensure that they fully understand the nature of the shares on offer and the potential risks relevant to them. If necessary, Investors should seek independent financial advice before investing. The offered shares are not protected by the Financial Services Compensation Scheme. Investors do not have recourse to the Financial Ombudsman Service.