Pontefract Heritage Partnership Ltd

Business Plan2014

Prepared by the Social Enterprise Support Centre Ltd

Contents cover:

1) Executive summary (see below)

2) Background to the organisationMission, Vision, ValuesOptions appraisal summary

3) StrategyCore business over the next three yearsUnderstanding how to unlock value

4) Service developmentCore services Sub contracted services Service developmentQuality management

5) Marketing strategyBackgroundCompetitor analysisSales strategyCommunications strategyPricing strategyStakeholder analysis and targeting/segmenting markets

6) FinanceStart up costsSources of incomeCash flow forecast for 5 years Sensitivity testingCosting model to inform a pricing strategyNotes to the finances

7) Risk assessmentBusiness continuity plan

8) Leadership and managementGovernanceStaff developmentPartnership 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 to create 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 20 th Century PGI expanded down the north slope of Friarwood Valley 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 summaryThe 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.

MissionTo 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 valueKey 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.

Year 1

New start up Year one focussed on building

revenues and reserves to build resilience

Phased approach to implementing strategy to allow testing of some acivities and manage costs

Social benefit created for local community: a new local amenity for public enjoyement, and education facility; protection and preservation of local heritage

Year 2

Develop the board

Complete the devleopment works of the asset

Define the value in activities to prioritise what works and do more

Update business plan to affirm strategic direction

Approve policies to enable investment in the team

Reporting systems in place for funders and Charity Commission

Year 3

Ensure revenue generation is performing to profile

Consider other assets for development process in place to evaluate

Increased levels of social value

created through increased performance

Consider the acquisition of other local heritage sites to develop

Service developmentStep one is total completion of the building to be able to provide servicesPlanning stageIn 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 progressesActivity – for discussion and expansion

Income Amount Notes1 Catering/Café 35000 based on £700 per week2 Retail Sales 15000 based on £300 per week3 Saturday Market 4800 based on £100 per week4 Events & social activities 5000 based on £100 per week5 Fundraising/charitable activities 25000

6 Managed workspace 18000 based on 6 units x £60 per week7 Room rental 3000 based on £60 per week8 Visitor Donations 2500 based on £50 per week9

10Total 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 businessesPartnerships with other museums/leisure?

Service developmentCharity 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 managementQuality systems will be embedded a s services are developed and overseen by the sub committees using stakeholder feedback.

Marketing StrategyBackgroundLocation

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 ProfilePontefract 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 on Wednesdays 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 and Wilkinsons 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

BrandingThe 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 HermitageThe caféMuseum/exhibition spaceRetail UnitBusiness space

Further work is required to trial ideas with stakeholders.

Competitor analysisPontefract 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 strategyAn 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 strategyEach 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 engagementIn 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 involved

Business 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 1

EXPENDITUREStaff CostsSalaries 28,064National Insurance 2,696Staff Sub-Total 30,760Operating ExpensesProject costs (stock) 25,800

Printing & Stationery 480Telephone & Comms. & IT 730Marketing 4,800General Expenses 4,320Operating Expenses Sub-Total 36,130Premises Related CostsRent 1,000other maintenance 8,550

Heat, Light & Water 9,000Premises Related Sub-Total 18,550Overheads 11,500Total Expenditure 96,940IncomeCatering/Café 35,000Retail Sales 15,000Saturday Market 4,800Events & social activities 5,000Contracts??Managed workspace 18,000Room rental 3,000Trading Sub-Total 80,800

Visitor Donations 2,500Fundraising/charitable activities 25,000Charitable Sub-Total 27,500Grants

Grants Sub-Total 0Total Income 108,300Surplus/deficit 11,360

Start up costsSources of income

Cash flow forecast for 5 years Sensitivity testingCosting model to inform a pricing strategyNotes to the finances

Risk assessment

Business continuity planKEY LOW MEDIUM HIGH

LEVEL Main Risks Potential Impact Mitigating action

Unable to recruit new team members

Delay to achieving production targets

Ready market of staff Induction Training and training plans in

place Use existing capacity to deliver

programme until trained staff in placeLoss of key people Project loses

impetus Potential failure

of business

All staff have capital invested and are committed to 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

Clear management reports produced and monitored

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

Staff /volunteers training completed and updated regularly to ensure quality maintained

Complaints resolved promptly in line with procedure

Regular feedback updates to all clientsImpact of recession Reduces

opportunities & attainment of targets

Engage key clients and review commissioning strategies

Active marketing campaign to promote Enabled business

Strong support from key stakeholdersInitial pressure on cash-flow

Unable to fulfil business obligations

Cash-flow forecast in place and regularly updated

Asset rich Support from bank & potential

overdraft/credit facilities if requiredPoor external organisation buy-in

Lack of support for business

Positive early engagement of key stakeholders

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:

PHPBoard

Businessdevelopment

sub groupOperations/ staff

sub groupPDHAG

sub groupFinance

sub group

Governance

The BoardElements of the Board’s role

Board leadership – ensuring the delivery of objectives, set strategic direction and ensure that the values of the organisation are adhered to

Board control – be responsible and accountable for ensuring and monitoring that the organisation performs well, remains solvent and complies with all its obligations, including all legal requirements and regulations

Board performance – the Board will have clear responsibilities and functions identified for its members and will ensure that members are appointed and organised accordingly

Board review and renewal – there will be a review of the Board’s functions at least every 2 years, looking at its own and the organisation’s effectiveness taking any necessary steps to ensure that both work well

Board delegation – a number of functions of the Board will be delegated to a sub-committee or the directors. The Board will review performance against these delegated authorities

Board integrity – the Board will set the example for the organisation, acting in accordance with Lord Nolan’s standards of behaviour in public life, namely: selflessness, integrity, objectivity, accountability, openness, honesty and leadership

The Board of Trustees will take the ultimate responsibility for the governance of the charity and ensure this is in accordance with its primary purpose, and in particular ensuring that the charity continues to meet the community benefit test. Board members will be responsible for drawing any concerns to the Charity Commission.

The Board will have 4 sub-committees for:

finance, fundraising and remuneration, business development and stakeholder relationships operations and staffing management of the Hermitage currently the remit of PDHAG

The Board will use both internal reports produced and external reports received by from external sources such as the external audit or finance. The overall role will therefore include the monitoring of the system of internal control and risk management and leading to any registration requirements.

The day to day running of the charity, its governance and strategic leadership rests with the Board, this will include agreeing a scheme of delegation to individual directors.

The Board will meet at least at least 4 times per year, one of which must be a formal Annual General Meeting which will be a public meeting. Members have a statutory right to require the charity to hold meetings at any time if at least 10% of the voting rights demand a meeting for the same specific purpose.

The charity is committed to openness; however as some issues may be commercially sensitive it may not be appropriate to allow all issues to be discussed in public.

The Board will comprise 7 voting members, made up of:

Chair

3 Directors (one of whom will be the formal Deputy Chairman)

1 Treasurer

1 Operations Director

1 Company secretary

Each member of the Board is there to primarily focus on the working of the charity, not to represent their own interests.

Stakeholders will be invited to attend public meetings of the Board but will not have voting rights.

Other members may, at the discretion of the Board, attend other Board meetings but will not have voting rights.

Quoracy

The rules of quoracy will require that the Chair or Deputy Chair must be present along with at least 2 Directors.

Initial Appointment, Tenure & Removal

Initial Chair and Non-Executive Appointments

The first Chair will be appointed by the constituted group PDHAG committed to creating a legal entity. This will allow the position to be established during a transition period.

The initial directors will be appointed by the Chair of Pontefract Heritage Partnership Ltd, and two other founding members.

Duration of initial appointments

The Chair will be appointed for an initial period of 3 years. Other appointments will have a staggered period of appointment to give some continuity. One director will be appointed for an initial 3 year period, and others for 2 years, this is to ensure that there is always experience on the board.

Arrangements for the appointment and removal of Chair and Directors

The Chair will be appointed by the members at the AGM. The process of selection will start with the Board agreeing a role profile and person specification. Should a new Chair be required to be appointed prior to the AGM a delegated sub group of the Board and members will short-list candidates and then interview.

The process for appointment of Directors will be the same, except that the Chair will also sit on the appointments panel.

Staff recruitment and developmentAll staff appointments will be openly advertised under the terms of the fair employment policy and with respect to equal opps.

All staff will be subject to a six month probationary period. Following confirmation of employment staff will then participate in an annual training and development program including an appraisal process.

Partnership policy

PHP will establish formal partnership working at both strategic and operational levels where there are clear opportunities to achieve some or all of the following aims:

Maximise revenues and help us manage the risks of the activitiesIdentify and promote activities for local benefitInform local, regional and national agendas for legacy/heritage management

Types of partnershipPHP can enter into formal partnerships with different types of organisation for different reasons. The three types of partnership are as follows:

Strategic partners: for example publicly funded organisations able to further the aims and objectives of PHP

Associate partners: organisations focussed on specific issues related to the charitable aims of PHP and/or its strategic objectives

International partners: non-UK based organisations with a remit to support heritage and history.

Partnership Criteria

PHP will determine the suitability of an organisation for formal partnership against the following criteria:

Shared strategic vision Resource availability Deliverables Added value Risk

Roles and responsibilities

PHP board of Trustees will consider and approve proposals for formal partnershipsThe sub committees may be asked to review and consider funding proposals for partnership work

The Chair will act as chief signatory for all PHPs formal agreements

Appendices

1) Board skills matrix2) Questionnaire used in public consultation

3) Letter from Philip Harvey with quote for services