I learned of an interesting company started up by well-meaning people in Muswell Hill. I believe they were concerned with climate change (which, with me, the jury is still out) but as the idea is to husband the world’s resources I certainly thought I would include their prospectus in this blog. Not so much to invite you to invest, more to give a detailed explanation of what they are about.
AN INVITATION TO INVEST
A first for North London
en10ergy limited is a social enterprise company registered with the Financial Services Authority on 30 October 2009. It is technically an Industrial and Provident Society [reg. no 30824 R] but it is like a trading company in having members who are shareholders and who are not liable for its debts. On the other hand its activities are not carried on for the benefit of the shareholders, but for the benefit of the community. There has never been anything like it before in Muswell Hill and it is a first for North London. To help us spread its benefits we invite members of the public to invest in en10ergy by buying £1 shares that are not transferable and can be sold back only after three years. The expectation would be of a social dividend rather than financial reward.
The detailed aims of the company are set out in Rule 2 of the set of rules registered with the FSA. Very broadly, through two main strands of activity, the aims are to protect and improve the environment
By promoting and investing in renewable energy installations and
By reducing carbon emissions and energy waste within Muswell Hill.
There are two large grant-funded projects in Muswell Hill in which en10ergy limited has an interest. The first concerns the installation of major solar panel arrays on suitable large buildings in Muswell Hill, including schools, social housing and Marks and Spencer’s. This is funded by Low Carbon Communities Challenge, with support from Haringey Council. The intention, subject to contract, is that en10ergy should have a major role as purchaser and installer of solar equipment on Marks and Spencer and other large buildings (but not the schools) with a prospect of receiving a net income from 2011 onwards of about £5K a year from the sale of solar-generated energy and the feed-in tariff. The intention is that surplus income should be re-invested for the benefit of the community
The reduction of carbon emissions and waste in the Low Carbon Zone
The other major project concerns the Muswell Hill Low Carbon Zone (LCZ) and it is funded by the Greater London Authority. Haringey council is in the lead, supported by the Muswell Hill Sustainability Group, British Gas and other interested organisations. The Zone comprises parts of the Broadway (St James’s Church to the roundabout) and roads to the south of it, including Church Crescent and Springfield Avenue. The role of en10ergy is facilitative: it will assist in obtaining the commitment of Zone residents and businesses to reducing carbon emissions and waste by 20.12% before the summer of 2012: solar panels are an option.
Retro-fitting the rest of Muswell Hill
These two major projects are funded and should lead to significant energy savings by the introduction of renewable energy (solar panels) and an intense programme of retrofitting within the Low Carbon Zone. There is, however, much more to be done outside the Zone. The
residential area in and around Muswell Hill is full of old houses that are extremely wasteful of heat; and domestic heat loss is thought to represent 27% of the United Kingdom’s carbon emissions. Many residents have contacted us with requests for advice on how to improve the energy efficiency of their homes. We want to be able to respond to them and to help and encourage others to put out less carbon and to reduce their bills. A good response to our share offer will enable us to do so.
What shares are available?
The £1 shares are on offer to individuals over the age of 16 and to businesses. The Rules require the purchaser to buy at least 10.The maximum holding by an individual is 20,000. Purchase in joint names is possible and so is purchase on behalf of nominees who are under 16 years old. The shares may not be transferred but may be sold back to the company after three years with 180 days’ notice in writing. These points are explained in greater detail in the Rules.
The shares do not offer a financial return but they do confer the benefits of membership, the most important being the right to vote at general meetings and thus influence the conduct of business and the governance of the enterprise. Shareholders have one vote each, whatever the size of their shareholding.
Will my money be safe?
As with any other shareholding the investment is only as safe as the company and it would be sensible to seek advice from an Independent Financial Adviser before investing. There is a risk that en10ergy may have to be dissolved at some point in which case some or all of the investor’s money may have to go to pay creditors. But the Board of Directors (names and addresses below) has confidence that the enterprise will prosper having regard to the following circumstances (which may, of course, change):
- We have received encouragement and support from Haringey Council including a Green Innovation Award of up £9,300.
- We have no overheads at present (our officers are all unpaid).
- Even before the launch we have received £1700 as payment for shares.
- Financial risk is minimised in relation to solar panel installations through grants to en10ergy: and the sale of renewable energy is expected to yield about 5K a year from 2011 onwards.
- We intend to reserve an appropriate portion of the solar panel income to pay back those who wish to surrender their shares after 3 years and to re-apply the rest in further carbon reduction work.
Dr Alan Morton,
76 Twyford Avenue, East Finchley, London N2 9NN
Ms Cara Jenkinson
18 Kings Avenue, Muswell Hill London N10 1PB
Professor Frederick Fitzke
64 The Avenue, Muswell Hill, London N10 2QL
All enquiries to Peter K J Thompson (Secretary)
Web: En10ergy Limited – Email: firstname.lastname@example.org
9 Hillfield Park, Muswell Hill, London N10 3QT