Lynton and Barnstaple - Operations and Development

If I was tendering for independent consultancy services and one of the bidders asked that question, they wouldn’t get on my shortlist.

 

As someone who spent 5 years dealing with the financial side of a Russell Group University research I gained the impression that the question is not put into words - the instigator will subconsciously or otherwise choose the source that they were familiar with who shares their attitude. And an auditor will only qualify a report in extreme circumstances because they know that should they do so they would lose the client, because there is nothing to stop a Company changing it's auditor at will. We're dealing with human nature here.

 

I agree - it’s ultimately down to the client’s wisdom in their choice of advisors. Yes we’re all biased to some degree but any client (or manager, for that matter) who only wants to hear ‘yes you’re right’ advice is a fool.

 

I think we need to be careful with language, as this is a situation where both you and @Small Prairie could be right.

From a purely financial perspective, you are absolutely correct. The operating profits made by OSI are insufficient to pay the cost of the capital that bought the pub. That is made more serious by the premium against a "normal" pub business that was paid.

However, and where I have sympathy with Mitchell, those numbers do not directly affect whether the pub makes a profit on its trading. That means that it can sell food and drinkinvest, and make a small profit - which is absolutely what's coming through in reports from the site. That makes the iceberg of debt the more dangerous, because it's hidden from view, and leaves less scope to adjsut to allow for it.

 

Really enjoyed this comment: understated, memorable, highly amusing and a very good tone indeed - quite the opposite of what "Line is clear"/ John Bailey has eventually managed to arouse in "James squared"/Tom Jane.

I have hesitated to "Like" it here only out of concern that someone might take literally the suggestion to pester the National Park into granting planning.
There will be people in any such a body - & possibly at a very basic level - who will just discount any such attempts, indeed hold them against their objectives: whether from possible grand long term consequences like legalities or abolition of the authority, short term costs ie more administrative bother its expense, or - generally - a distraction from seeing the overall woods and not the trees in them.

 

I agree with all of this, @35B but the financial perspective will ultimately prevail, I fear.

 

You are very lucky that a charity has decided to prop up your local. Many of us don't share that benefit & are perhaps understandably less enthusiastic.

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Indeed. Far from being an arms-length investment, the pub only survives because the Trust injects cash by buying shares. Frankly had I wanted to enter the pub landlord business I would have bought shares in Punch. Maybe mistakenly I thought that I was investing in the extension of a railway.....

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Touche!

 

It will. But I think we do those who focus on the tangible a disservice if we ignore the way that the financial is a more or less hidden iceberg, easily missed. As the Titanic discovered.

 

I like this, and let's hope it doesn't happen at Blackmoor, but from those I have spoken to, the real concern is finding the people or one person who is willing to invest in this now or afterwards should the worst-case scenario come about. Those who have already invested may not have the cash to do it all again.

So let's not go around again with will it or won't it survive, but let's try and come up with suggestions that can be tried to remove the debt in the easiest legal way possible.

I am assuming that, in time, if the Trust does own 51% of Blackmoor PLC, the membership of the Trust could instruct the L&BR Trustees to act on their behalf. But knowing how convoluted the group is, I won't hold my Breath.

 

Will the North Devon equivalent be re-arranging the pub tables on the former platform at Blackmoor ?

 

Reading all the comments on here today has made me realise that we have not yet addressed the one big elephant in the room, and that is what North Devon Council think of all this. If I recall, we have had two planning applications in for Blackmoor. The first one every one was happy with, but the second was what started all this off, and of all the people to resist this, it was the Sharpards themselves.

I just wonder if anyone has gone to talk to the NDC to get their take on the Pub and what they expect us to do with it, also to find out what they will allow us to have on site as well.

We have planning permission for the railway south of the Station. But I am sure we don't have any planning applications in for the Station/Pub itself. I think if we want to have some idea of what the future holds for the Station, then we need to have an idea of what the local council will allow us to do as well.

 

And fixing how much money you are going to spend before you start!

 

It doesn't have to wait until the Trust holds 51% (of the B shares) - it already owns all the controlling A shares. And there are two common trustees/directors, so they can do it now. I would love to see the business plan which backed up this purchase with a projection of, say, 10 years. Perhaps we should remember the £800,000 plus private shareholders, many of whom did not expect to be on a par with Thames Water investors, probably some did not expect a return, but didn't expect it to be to the detriment of extending the railway.

 

The Trust control the pub plc but the Trust members’re unlikely to be able to instruct their trustees to do any particular action both because of the difficulty of getting a motion to and through a General Meeting; and because Trustees are obliged to act in the best interest of the charity.

 

I attach a screenshot from the share offer doc. It contains said projection.


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Does anyone know what ale Old Station pub is serving as I heard Exmoor ale is stopped being made. Could the railway take it on as part of the pub? Pub with brewery are a popular choice and there will be the chance of doing tours until the railway gets there

 

According to the latest media reports, Exmoor Ale are relocating their brewing to Surrey. Not sure how visitors to the OSI would take to being 'bussed' there....

 

I thought they used to have a brewery at one time, years ago. But yes, it could be a profitable outlet, more so if you got a regular order from Wetherspoons to go around the whole country.