Financing Social Enterprise

Social Impact and Financial Highlights 2016

A Youth Engagement Supportprogramme for young people withlearning needs at Lurgan YMCA. A loanfrom UCIT is assisting the organisation todevelop sustainable income streams.

LOANS APPROVED TO CHARITIES AND SOCIAL ENTERPRISES 2001-2016

£69M MILLION

Over the last 15 years, Ulster Community Investment Trust(UCIT) has provided funding to over 400 communityorganisations, charities and social enterprises whorealistically would not otherwise have had access to loanfinance. This has helped create employment, attractinvestment, bind communities and stimulate economicactivity, in areas often marked by social or economicdeprivation.

During 2016, UCIT and our subsidiary business in theRepublic of Ireland, Community Finance (Ireland), approvedloans of just over £6 million to 70 third sector organisationsacross a wide range of sectors, geographies andcommunities. In many cases, absent the support of UCIT, ourclients would have struggled to achieve their investmentambitions.

In response to the need to further develop and widen theprovision of social finance to the third sector in NorthernIreland, UCIT together with Building Change Trust have putin place a new £350,000 loan finance initiative. BuildingChange Trust was established in 2008 by the Big LotteryFund with a National Lottery grant of £10 million. This newfund provides small unsecured loans of £1,000 - £25,000 toassist the needs of smaller community based organisationswho undertake so much important work in all areas of oursociety.

I am also very pleased to report that Belfast CharitableSociety has committed a further £350,000 to this fund andtogether with a contribution from UCIT has allowed it growto £1 million. Belfast Charitable Society is Belfast’s oldestand one of its most respected charities and UCIT is proud tobe associated with it.

These small loans can be used for a wide variety ofpurposes, including buildings and repairs, equipmentpurchase, making facilities more energy efficient, fundingshortfalls in larger grant assisted projects, creating

employment or indeed any legitimate need that might arisewithin the community groups.

In December 2016, Economy Minister Simon Hamilton MLAcongratulated the NI Small Business Loan Fund as it hit morethan £5 million in new loans. The Small Business Loan Fundwas launched just over four years ago to provide access tofinance for small businesses, sole traders and partnershipswhich are keen to develop their business, but find it difficultto access funding through traditional sources. It is managedby our subsidiary Ulster Community Investment plc on behalfof Invest Northern Ireland and delivered in partnership withEnterprise Northern Ireland.

Access to finance is often the main obstacle for businessesstarting up and growing. It is estimated that the SmallBusiness Loan Fund has helped its clients generate an extra£26.5m in sales and create 144 new jobs across 260companies which is a small but important step in helping oureconomy to grow. The Fund is still open with facilities of upto £50,000 available. As a revolving fund it’s expected thatbetween £7m and £8m will be made available in total overthe Fund’s lifetime. I am delighted to further report that allindependent reviews completed in relation to theperformance of the Fund to date have been extremelypositive.

Finally, I am very grateful to the staff at UCIT and mycolleagues on the Board for their enthusiasm and support.Aidan Sloane, William Patterson and Audrey Murray resignedfrom the Board during the year. I would like to thank them fortheir contribution to the Executive Board and wish them wellin their future endeavours.

Alan Moneypenny, ChairmanUlster Community Investment Trust (UCIT)

Chairman’s Report

UCIT assisted the community artsfestival, Féile an Phobail, with workingcapital support to pay front ended2016 festival costs

SMEs and social enterprises are the bedrock of NorthernIreland’s economy, but it is proving increasingly difficult forbusiness promoters in these sectors to secure finance fromtraditional sources.

During 2016, Ulster Community Investment Trust (UCIT)approved loans of £3.7 million to a wide range of thirdsector organisations across Northern Ireland.

By way of brief example, we assisted Portglenone EnterpriseGroup purchase a historic building in the centre of thevillage which will be developed to provide office space andbusiness units for new, start-up enterprises. We providedSlack Press, a young digital media social enterprise with aloan to upscale their business and we released funds toClonoe Rural Development Agency in County Tyrone toacquire land to extend their community facilities.

We were also very pleased to provide a number of charitieswith loans to enable them to develop income generatingactivities. Support was provided to Avert Enterprises - thetrading arm of Foyle Women’s Aid - to enable theestablishment of a beauty and holistic therapy service. Allprofits from this social economy business will be used tosupport victims of domestic and sexual violence in the city.

A loan was provided to Destined to enable them to purchasea private taxi firm in Derry. The acquisition of the taxibusiness will enable Destined to offer specialist accessibletransport to the learning disabled whilst continuing to offeraffordable general taxi services to the wider community.

We were delighted to further extend our reach by partneringwith the Building Change Trust and Belfast CharitableSociety in the development of a £1m finance initiative tohelp us meet much needed demand for smaller unsecuredloans from within the third sector. The loan fund aims tomatch the needs of local communities, and be flexible andresponsive in its delivery. I am delighted to say a number oforganisations have already availed of this facility.

Our business in the Republic of Ireland also continues toflourish. During 2016, UCIT’s subsidiary company,Community Finance (Ireland) approved loans of €2.9 millionto 30 third sector organisations. This trend is expected tocontinue with the appointment of two further team members– Rose Hally in the Connaught/Munster region and BarrySymes in the South Dublin/Leinster area. We wish them wellin their new roles in Community Finance (Ireland).

Our successful management of the £5 million Small BusinessLoan Fund on behalf of Invest Northern Ireland has ensuredover 260 loans have been approved to date. Our economy iscritically dependant on small business, and access to financeis central to its ability to survive and grow. The SmallBusiness Loan Fund has encouraged business growththrough new product development, export sales andemployment. Interim external evaluation reviews haveconcluded that not only is the Fund operating satisfactorilyin process terms but that it is delivering the economicobjectives for which it was set up in the first place.

In conclusion I would like to express my thanks to the staffand the Directors on the Boards of UCIT and CommunityFinance (Ireland) for their continued commitment in makingUCIT the successful organisation it has become.

Harry McDaid, Chief ExecutiveUlster Community Investment Trust (UCIT)

Chief Executive’s Report

loans approved to 40 organisations in Northern Ireland

£69MLoans approved to over 400 charities,community organisations and socialenterprises

€2.9Mloans approved to 30 organisations in Republic of Ireland

Bad debt provisions (excluding inherited bad debts) 2.1%

£3.7M

Achievements 2016

Achievements 2001-2016

NI Loan approvals 2001- 2016

£51M

RoI Loan approvals 2007- 2016

€22M

Distribution of our Third Sector borrowers

Blythswood Ireland LtdUCIT has supported a number of existing or past clients with new or increased loan facilities to enable them further expand theirenterprises, increase their workforce or increase their social impact. Blythswood Ireland Ltd has received four loans from UCIT overthe past six years aggregating £683,000. These have been used to purchase warehousing and to open shops across NorthernIreland, most recently in Ballymoney. Blythswood Ireland currently has 17 full-time employees, four part-time employees and asizeable volunteer base.

“Since 2010 the support we have received from UCIT has been incredible. The loans have eased the pressure on the charityfinancially and allowed us to focus on providing help to those that need it most here in Northern Ireland and in our overseasprojects.

“We currently have seven retail outlets across the eastern region of Northern Ireland. The latest round of funding from UCITallowed us to purchase a shop unit in Ballymoney together with an adjoining vacant unit and adjacent ground with planningpermission. In order for us to help more people in need, we need the generosity of people and the support of organisations suchas UCIT.”

Harry Latimer, Chief Operating Officer, Blythswood Ireland Ltd.

Pictured are Harry McDaid, Chief Executive of UCIT and Harry Latimer, Chief Operating Officer, Blythswood Ireland Ltd. at the organisation’s warehouse in Ballyclare

Case studiesNorthern Ireland

Cookstown Enterprise CentreCookstown Enterprise has been supporting smallbusiness development in Mid Ulster for almost a quarterof a century.  A core area of the company’s business isthe provision of business accommodation to rent forlocal start-up and expanding enterprises. 

With the assistance of a loan from UCIT the organisationhas purchased and brought back into use a vacant andderelict town centre building.

Mary Monaghan, Property Manager at CookstownEnterprise, confirmed: “With the support from UCIT,today the ground floor houses four separate businessventures with further commercial and residentialaccommodation located on the first and second floors.This is an innovative and extremely successful propertydevelopment project supporting the retail and servicesector locally.”

“The directors, management and staff at CookstownEnterprise would wish to thank the Board of UCIT foroffering the loan facility and supporting the continualdevelopment of the organization in the Cookstown andMid Ulster region.”

Jim Eastwood, General ManagerCookstown Enterprise Centre

Photo: Helen Flowers, a small business located withinCookstown Enterprise’s town centre development

A loan from UCIT assisted the Bloody Sunday Trust during the redevelopment of the Museum of Free Derry

Bloody Sunday TrustEstablished in 1997, Bloody Sunday Trust (BST) is a community-based education and human rights organisation. Alongsidesupporting the families of those killed and wounded on Bloody Sunday, the organisation work to advance education and raiseawareness through the historical preservation and presentation of the period that led to this event. The Trust has recentlycompleted a major redevelopment of its flagship project, the Museum of Free Derry, to include a Ground floor extension anddevelopment of a new first floor.

“The project necessitated a move to temporary premises, and a subsequent drop in income. There were also a number ofadditional costs relating to the building project that had to be met by the Bloody Sunday Trust. The loan from UCIT wasinvaluable in helping us to meet these extra costs, deal with the drop in income, and get us through to the point where we arefully operational again in our new building. We are very grateful for the help that UCIT gave us.”  

Adrian Kerr, Manager, The Bloody Sunday Trust

£2.2minto 27 organisations

£6.4minto 71 organisations

£14.8minto 78 organisations

£1.8minto 12 organisations

Community Services

£2.2minto 10 organisations

£5.7minto 53 organisations

Arts & Heritage Enterprise & Workspace Sports

£4.6minto 36 organisations

Environment Housing Tourism

£1minto 16 organisations

£2minto 9 organisations

£2.3minto 23 organisations

Childcare Faith/Church Education & Training

Our Investment in the Third Sector

Third SpaceDublin’s redevelopment in the early 21st century produced new living spaces and new working spaces butfew neighbourhood gathering spaces – few “third spaces.”

Third Space is a social business venture set up to open and run eating and meeting places in theredeveloped areas of Dublin that lack community hubs.  By day, Third Space provides a welcominginexpensive eating hub for residents and workers. In the evening the premises provide valuable space forlocal 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 atrates 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

Case studiesRepublic of Ireland

Illies Golden Gloves Boxing Club Company LtdIllies Golden Gloves Boxing Club is a community based, non - profit organisation, which aims to foster a culture and an environmentthat 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) andNational (30) titles. The group acquired a loan facility from UCIT’s subsidiary company, Community Finance (Ireland), to upgrade theirpremises. The new modernised facilities will host international tournaments, health and fitness classes and training, serving to furtherstrengthen 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 andbegan 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 attoday.”

Sadie Duffy, Hon. Secretary, Ulster Boxing Council IABA

Illies Golden Gloves Boxing Club acquired a loan facility from UCIT’s subsidiary company,Community Finance (Ireland), to upgrade their premises

Northern IrelandCommunity 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 IrelandHook 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

Third Sector Loan Approvals 2016

NI Small Business Loan Fund

At December 2016

(£5M Loan fund managed by UCIT on behalf of Invest Northern Ireland)

Loans approvedby County

DOWN

TYRONE

FERMANAGH

DERRY/LONDONDERRY

ANTRIM

39

14

22

60

105

39

ARMAGH

£5.4MTotal volume

of loans provided

202Existing businesses 77Start up businesses

264Number of loans

dispersed

279Total number of loans approved

£20,583Average loan amount

The Northern Ireland Small Business LoanFund is managed by Ulster CommunityInvestment plc (UCI) on behalf of InvestNorthern Ireland. During 2016, Belfast-basedTeamwear Ireland received another £27,000from the Fund to support future growth.

Directors and StaffDirectors Northern IrelandAlan Moneypenny ChairChair of Finance and Audit committee, Riverside Theatre

Damian McAteer Vice-ChairDirector of Waterside Development Trust

Dermot McGaleRetired Regional Director of First Trust Bank

Seamus McAleavey Chief Executive of NICVA

Dr Arthur Mitchell MBE Company Secretary/ FounderTrustee/Director of Mourne Heritage Trust

Thelma Armstrong MBEBoard Member of Ulster Provident Housing Association

Erskine Holmes OBEChair of Lagan Navigation Trust

Jim MaloneDirector/Founder Member of Ardee CommunityDevelopment Company

Audrey Murray MBE*Business Development Manager of LEDCOM

Michael McGarrigleSecretary of Council for the West

Douglas McIldoonSecretary of NI Co-operative Forum

Seamus O’PreyChief 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 IrelandAlan Moneypenny, ChairChair of Finance and Audit committee, Riverside Theatre

Dermot McGaleRetired Regional Director of First Trust Bank

Henry BrennanGeneral Manager, Coolock Community & Enterprise Campus CLG

Paddy HarteEconomic and Social Development ConsultantMember of the Board of the International Fund for IrelandDirector of Comhaltas Dhrioghlainne Chontae Dhún na nGall Teo

Kevin HelfertyDirector of Buncrana Credit Union Ltd

Jim MaloneDirector/ Founder Member of Ardee CommunityDevelopment Company

Dr Arthur Mitchell MBEFounder Trustee/ Director of Mourne Heritage Trust

Michael McGarrigleSecretary of Council for the West

Seamus O’PreyChief Executive of ORTUS Group

Andrew WardJoint CEO Inishowen Development Partnership

Northern Ireland – UCITHarry 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

UCIT - Consolidated Statement of Financial Activities for year ended 31 December 2016

2016 2015 £’000 £’000

Incoming resources 976 912

Charitable activities (797) (725)

Net operating income 179 187

Bad debts (provided) / recovered (71) 76

Foreign exchange movement 183 (69)

Net movement in funds 291 194

UCIT - Consolidated Balance Sheet as at 31 December 2016

2016 2015 £’000 £’000

Fixed assets

Tangible assets 8 9

Investments 180 195

188 204

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 24 22

Unrestricted income funds 15,520 15,230

Total charity funds 15,544 15,252

Accounts 2016

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

Community Finance (Ireland)Unit 16, Ardee Business ParkHale Street, Ardee, Co Louth, A92 XN79

Tel/Fax +353 (0) 41 6858637

Ulster Community Investment Trust Ltd (UCIT)13-19 Linenhall StreetBelfast, BT2 8AA

T +44 28 9031 5003F +44 28 9031 5008E: info@ucitltd.com

www.communityfinance.ie

www.ucitltd.com

Financing Social Enterprise

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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. 589719) and has Interim Permission to perform Consumer Credit Lending (IP No. 652674).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. 665534).The registered address of UCIT, UCI Plc, and NISBLF LP is 13-19 Linenhall Street, Belfast, BT2 8AA.Ulster Community Investment Trust (Ireland) Ltd t/a Community Finance (Ireland) (Company No. 544901) is registered as a charity in the Republic of Ireland (Charity No. 20044619) and it’s registered address is Unit 16, Ardee Business Park, Hale St, Ardee, Co. Louth.