JOBS GROWTH INVESTMENT

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1 Ulster Community Investment Trust JOBS GROWTH INVESTMENT Social Impact & Financial Highlights 2014 Financing Social Enterprise

2 UCIT got to know us as a team and worked with us to tailor their financial support to a package that was exactly what we needed. We plan to use the support to create jobs for media graduates and expand our markets to help SlackPress grow. Amy Lowry, Creative Consultant, SlackPress. 52M Loans approved

3 ChairMan s report Chief executive s report Since commencing operations in 2001, UCIT has committed in excess of 50 million to over 360 charities, community organisations and social enterprises in Northern Ireland and the Republic of Ireland. This impressive milestone has been achieved following the approval of a further 6 million of loans to 70 projects during All our committed funds have been directed at projects which make a demonstrable contribution to the sustainable economic and social welfare of their local communities. As demand for our products continues to grow, so our efforts are being directed towards securing further monies to assist the sector. There is a real risk that hard-fought achievements by social enterprises in the creation of jobs and provision of essential community services could be reversed if the sector does not have access to affordable finance. In a time of efficiency reviews and public sector cuts, the social economy sector can offer excellent value for money alternatives and we want to play our role in providing the financial resource that will enable this to happen. During the past two years, Ulster Community Investment Trust (UCIT) has also successfully managed the 5million NI Small Business Loan Fund on behalf of Invest Northern Ireland. The Fund is managed by our subsidiary Ulster Community Investment Plc (UCI) and delivered in partnership with Enterprise Northern Ireland. The Fund provides access to finance for small businesses, sole traders and partnerships which are keen to develop their business but find it difficult to access funding through traditional sources. The first loan was drawn down in April 2013, and since then we have made 130 loans totalling 2.7 million. The Fund has helped support companies from a very wide range of sectors including IT, food processing, construction, leisure, tourism and many others. This loan fund is also open to social enterprises and I am pleased to report a number of organisations have availed of it. We are delighted to be able to support these small businesses in their growth ambitions and to help many others get off the ground. The activity to date has clearly shown that the fund is filling a gap in the market. To conclude, I wish to place on record my thanks to my fellow directors, the management team and staff for their ongoing commitment and hard work. In pursuance of its mission the Trust will continue to provide competitive, flexible and tailored lending. The need to broaden and deepen the funding base of the Trust is essential however in order to meet increasing demand and to ensure the access to alternative sources of funding post Dermot McGale, Chairman, Ulster Community Investment Trust (UCIT) During 2014 we received the final loan repayment from one of our very first borrowers, Eskra Community Association. The organisation borrowed 40,000 during 2001 to meet the shortfall in a funding package for the building of a childcare centre which it was hoped would contribute to a wider strategy to halt the emigration of young families from this rural community in County Tyrone. I am delighted to report that with UCIT s assistance, the childcare centre is now a thriving business with over half a million pounds turnover, employing 38 staff who care for up to 150 children per day. Today, UCIT remains true to our original aims and continues to offer competitive and flexible finance facilities to financially viable third sector organisations, which, through local economic initiatives contribute to their respective communities by providing services, support and employment. Last year we made loans aggregating 3.7 million across 39 Charities, Community organisations and Social Enterprises in Northern Ireland. These included sporting organisations, community associations, workspace projects, faith based organisations and a wide range of other worthy recipients. In the majority of cases, without the support of UCIT these organisations would not have had access to funding. These loan commitments have been funded entirely from UCIT s own capital base. UCIT is committed to continuing its support of these important sectors however as the number of enquiries that we receive continues to grow, we need to explore new avenues for attracting further investment. During the year we undertook a survey involving a sample of new loan clients (36 clients). What is clear from the survey is that our third sector borrowers are attracted to our competitive rates, flexibility and straight forward processes. I am pleased to report that over two thirds of our recent new loan clients scored our loan application process as excellent. It was also pleasing to note that almost half of our applicants were referred to us by favorable word of mouth recommendations. While remaining true to our original aims, the organisation has evolved. We have strengthened our position further in the Republic of Ireland market with a range of new loans being approved through the support of the Social Finance Foundation (SFF). 32 loans were approved during 2014 to an aggregate value of 3.57 million. We wish to formally record our gratitude to the SFF for their support in helping us grow our business. Fund management is also now an important component of our business. Our successful management of the 5million NI Small Business Loan Fund on behalf of Invest Northern Ireland has ensured access to funding to a wide range of businesses across all of Northern Ireland. We have demonstrated that there is a clear need for the fund based on the level of enquiries and number of loan approvals made. During the past two years, we have made 130 loans aggregating 2.7 million. Businesses have been supported in 25 out of the 26 Council areas with an average loan amount of 20, 894. Funding has been provided for general start-up costs, refurbishment and repairs, machinery, franchise development, exporting as well as working capital finance. Within this investment process we are securing jobs that might otherwise be lost, and promoting employment which otherwise may not have existed. In conclusion I would like to express my thanks to the Directors on the Boards of UCIT and UCIT (Ireland) who give their commitment, skills and support in a voluntary capacity. I would also like to thank the Staff for their endeavours and hard work throughout the year. We look forward to 2015 and the continuing real and positive contribution of the Trust to local businesses and communities. Harry McDaid, Chief Executive, Ulster Community Investment Trust (UCIT)

4 achievements during M Loans approved to Northern Ireland during DISTRIBUTION OF UCIT LOAN HOLDERS NORTHERN IRELAND REPUBLIC OF IRELAND Community organisations, Charities and Social Enterprises funded by UCIT during % 3.3% Operating Surplus Increase Debt provisions (excluding inherited bad debts) 3.6M Loans approved to Republic of Ireland during 2014

5 achievements over the past 13 Years 13 Years 52M Loans approved 370 Loans approved 3.2M net surplus to ucit Loan fund our impact SPORTS 3.8M INTO 37 PROJECTS number of projects financed within each social sector CHURCH AND FAITH 1.5M INTO 6 PROJECTS ENVIRONMENT 0.7M INTO 9 PROJECTS TOURISM 4.3M INTO 40 PROJECTS ENTERPRISE & COMMUNITY, 60 WORKSPACE EDUCATION SPORTS, ARTS & FAITH & HERITAGE HOUSING 2.3M INTO 9 PROJECTS COMMUNITY PROJECTS 5.1M INTO 54 PROJECTS EDUCATION/ TRAINING 1.7M INTO 16 PROJECTS HEALTH, CHILD HOUSING & TOURISM & SOCIAL CARE ENVIRONMENT ARTS AND HERITAGE 2M INTO 23 PROJECTS CHILDCARE 1M INTO 13 PROJECTS ENTERPRISE 13.6M INTO 74 PROJECTS

6 Case studies East Belfast Mission East Belfast Mission is one of the longest established and largest community enterprises in Belfast. Based on the lower Newtownards Road, the organisation provides a wide range of services for the local community and operates a number of social enterprises including a café, day nursery and chain of shops. "East Belfast Mission applied to UCIT for a loan to expand our 'Bright Sparks' childcare facility. The process was professional and straight forward and tailored to our specific needs." Anne Walsh, Chief Operations Officer East Belfast Mission Grass Roots Renewables Grass Roots Renewables (part of Carntogher Community Association) received a 250,000 loan from UCIT which was used to fund a new 250KW wind turbine at Tirkane, outside Maghera. The turbine will be able to create renewable energy and generate income that will be used to assist in sustaining a range of our community developments. Some of the local groups to benefit will be the Community Association, two preschool nurseries and the local GAA club. The project will have a positive impact socially, environmentally and economically with all profits generated being reinvested into local community projects with no dividends paid to shareholders. We approached UCIT for a loan because we felt they shared our beliefs and are community focused. Their support and enthusiasm has been instrumental in the construction of this turbine. Niall O Kane Director of Carntogher Community Association East Belfast Mission applied to UCIT for a loan to expand our 'Bright Sparks' childcare facility. The process was professional and straight forward and tailored to our specific needs Grass Roots Renewables received a 250,000 loan from UCIT which was used to fund a new wind turbine outside Maghera. The turbine will be able to create renewable energy and generate income that will be used to assist in sustaining a range of community projects.

7 Case studies South East Food Trade Desk Cooperative Society Ltd The South East Regional Food Trade Desk is a cooperative of producers in the South East (based in South County Kilkenny) supplying retail & foodservice customers across Munster and Leinster. UCIT (Ireland) provided the cooperative with a bridging loan so that they could retrospectively claim a grant from the Rural Development programme. The cooperative also availed of a short term working capital loan from UCIT to assist in the early stages of business development. Funding from UCIT has been a key enabler for our not-for-profit Food Coop. We have managed to make a very positive start and are building all the time with what is a new and innovative concept. UCIT really understood our idea from the very start and have been very supportive all the way. Kilian Duignan, Manager, South East Food Trade Desk Cooperative Society Ltd The Workspace Group Workspace Group, one of Northern Ireland s leading Local Enterprise Agencies, received a loan from UCIT to enable it expand its exports and underpin its ongoing growth strategy. The Draperstown-based organisation has grown considerably in the past few years, exceeding 10m turnover for the first time in There are currently 147 staff across the various parts of the group in its nine locations. Workspace received a tailored working capital facility from UCIT to fund the expansion of Therm Tech, which it acquired three years ago. Therm Tech has reported strong growth in recent years and this loan from UCIT will support our ambitions for further growth, principally through increased exports in the UK and Europe. In addition to this increased level of export activity, we will be able to consolidate existing jobs and continue the employee growth strategy which has been so evident over the last two to three years. Robin Gawne, Workspace Company Accountant Funding from UCIT has been a key enabler for our not-for-profit Food Coop. We have managed to make a very positive start and are building all the time with what is a new and innovative concept. UCIT really understood our idea from the very start and have been very supportive all the way. Filmbase is a not-for-profit, member-led organisation based in Dublin dedicated to supporting and stimulating new and emerging Irish Filmmakers. The organisation availed of a bridging loan from UCIT (Ireland) to facilitate the running of a Masters Course.

8 Case studies Boardmatch Ireland Boardmatch Ireland is the National Corporate Governance Charity in Ireland which works to improve governance in the not-for-profit sector by strengthening boards and management committees. "We had a specific project that was hugely important for our organisation going forward and without the assistance of a loan from UCIT we could not have completed this project in our tight deadline. The process was simple and all questions were quickly answered in a professional manner to help us with our application." Eva Gurn, Manager, Boardmatch Ireland Dungarvan United AFC During 2014 UCIT (Ireland) assisted Dungarvan United AFC, County Waterford, with a loan to restructure their existing finances, thereby providing the Club with a more flexible and cost effective borrowing. The Club also availed of a loan to meet the shortfall in a funding package for the installation of essential floodlighting. As Chairman of Dungarvan United AFC, I would wholeheartedly recommend UCIT to other sporting and volunteer organizations. While installing floodlights at Kilrush Park, the club were unable to meet a shortfall in funds from our own bank and the credit union but UCIT came to the rescue. Dungarvan United AFC has lit up our home ground in January 2015 and couldn t have done so without UCIT. David Walsh, Chairman, Dungarvan United AFC As Chairman of Dungarvan United AFC, I would wholeheartedly recommend UCIT to other sporting and volunteer organizations. While installing floodlights at Kilrush Park, the club were unable to meet a shortfall in funds from our own bank and the credit union but UCIT came to the rescue. "We had a specific project that was hugely important for our organisation going forward. Without the financial assistance from UCIT we could not have completed this project in our tight deadline. Eva Gurn, Manager, Boardmatch Ireland.

9 ni small business Loan fund august 2012 INvEST NORThERN IRELAND AWARDED 5M NI Small Business Loan Fund to UCIT via our subsidiaries UCI GP and UCI plc february 2013 UCI Plc Became authorised by the Financial Conduct Authority april 2013 FIRST APPROvED NISBLF LOAN DRAWN DOWN Range of loans provided 1,000-50,000 Loan purposes include working capital, buildings, plant, machinery, equipment and product development needs december ,674,433 Total volume of loans provided 20,894 Average loan amount 130 Loans approved 25 Businesses funded in 25 out of 26 Council areas LoAnS By CoUnTy DERRY /LONDONDERRY FERMANAGH TYRONE ANTRIM BELFAST DOWN ARMAGH The loan we secured has allowed us to open northern Ireland s first training and management agency for costumiers and hair and make-up artists. The ni Small Business Loan Fund has been incredibly supportive in helping me kick start the business. nuala Campbell, Managing Director, Titanic Creative Management.

10 projects funded during 2014 UCIT (Ireland) provided Thomastown Town of Food with a loan to facilitate the drawdown of a Rural Development Programme grant which will be used to promote Ireland's South East as a food destination and centre for Food Education and Entrepreneurship. Northern Ireland Lough Neagh Rescue Ltd Loughmacrory Community Development Association Ltd River valley Development Association Ltd Greenlight Gateway Ltd Newtownhamilton Rural Community Association Ltd Portaferry Sailing and Social Club Workspace (Draperstown) Ltd Enniskillen Community Development Project Ltd Lissan house Trust Falls Community Council Foyle Womens Aid Poyntzpass Community Regeneration Company Ltd Creggan Country Park Tools for Solidarity Community Recycling Initiative Ltd Ahoghill Community Property Development Company Ltd Clonmore Regeneration Group Ltd Drumlin Wind Energy Co-operative Ltd East Belfast Mission Roe valley Enterprises Ltd Grassroots Renewables CIC Carntogher Community Association Ltd The Elim Trust Corporation Ltd Training for Women Network Ltd Ardglass Development Association CP Ltd Slieve Gullion Courtyard Development Group Ltd Dungannon Enterprise Centre Ltd Ortus The Business Development Agency Springfield Charitable Association Ltd Slack Press Ltd Landmark East Ltd Sixmilecross Enterprise Ltd Republic Of Ireland Rock hall Committee Just Social Ltd Cavan County Enterprise Fund Ltd Ardagh Community Centre Association Phoenix Sports Centre Carrickmacross Ltd Moving Meevagh Forward Carlingford heritage Ltd Milford hall Committee South East Mountain Rescue Association Ardagh Community Centre Association Kerry Flyer Ltd Fenagh handball Club Social Innovation Fund Ireland Ltd Boardmatch Ireland Ltd Skryne Gaelic Football Club Knockatallon Development Company Ltd IRD Milford Ltd Thomastown Town of Food Ltd Mullamatt Cortolvin Community Development Ltd Monica Loughman Ballet Ltd Craughwell Athletics Club Just Social Ltd Knockatallon Development Company Ltd South East Food Trade Desk Co-Operative Ltd Mullamatt Cortolvin Community Development Ltd Filmbase Ltd Dungarvan United Ltd Knockatallon Development Company Ltd Clones Erne East Sports Facility Management Company Ltd

11 directors and staff Directors northern Ireland Dermot McGale Chair Retired Regional Director of First Trust Bank Seamus McAleavey Vice-Chair Chief Executive of nicva Dr Arthur Mitchell MBE Company Secretary Founder Trustee / Director of Mourne Heritage Trust Thelma Armstrong MBE Sub Board member of Choice Housing Association Erskine Holmes OBE Elected member of ni Council Co-operative Group Jim Malone Director/Founder Member of Ardee Community Development Company Alan Moneypenny Former Vice-Chair of Sport ni Audrey Murray MBE Business Development Manager of LEDCoM Damian McAteer Director of Waterside Development Trust Michael McGarrigle Secretary of Council for the West Douglas McIldoon Secretary of ni Co-operative Forum Seamus O Prey Chief Executive of ortus Group William Patterson Chief Executive of Greater Shankill Community Council Aidan Sloane Chief Executive of Springvale Employment & Learning Solutions Directors Ireland Dermot McGale Chair Retired Regional Director of First Trust Bank Henry Brennan Business Consultant and Certified Accountant Paddy Harte Lecturing and Economic and Social Development Advisor Kevin Helferty Director of Buncrana Credit Union Ltd Jim Malone Director/Founder Member of Ardee Community Development Company Dr Arthur Mitchell MBE Founder Trustee/ Director of Mourne Heritage Trust Alan Moneypenny Former Vice-Chair of Sport n.i Michael McGarrigle Secretary of Council for the West Seamus O Prey Chief Executive of ortus Group Andrew Ward Joint CEo Inishowen Development Partnership Staff Harry McDaid Chief Executive Barry Connolly Finance Director Phelim Sharvin Associate Director Donal Traynor Associate Director [RoI] Sandra Cowan office Manager Marie Carpenter office Administrator [RoI] Paddy Shanks Lending Manager Trudi Dunbar Marketing Executive Sinead McCrory Client Relationship Executive Robert Quinn Client Relationship Executive [RoI] We used the loan from UCIT to help us refurbish our changing facilities and purchase office and outdoor equipment without UCIT these improvements would not have been possible. Gerry Quinn, Manager, Creggan Country Park.

12 accounts 2014 UCIT - Consolidated Statement of Financial Activities for year ended 31 December Incoming resources Charitable activities and governance costs (818) (746) Net operating income recovered / (provided) Bad debts recovered / (provided) 82 (51) Foreign exchange movement 5 (3) Net movement in funds UCIT - Consolidated Balance Sheet as at 31 December Fixed assets Tangible assets 7 8 Investments Current assets Debtors due after more than one year 11,450 10,349 Debtors due within one year 3,245 2,763 Cash at bank and in hand 2,965 4,249 Creditors due within one year (1,004) (825) Net current assets 16,656 16,536 Total assets less current liabilities 16,893 16,798 Creditors due after more than one year (1,837) (1,908) Net assets 15,056 14,890 Funds of the Charity Share capital Unrestricted income funds 15,036 14,870 Total charity funds 15,056 14,890 Rostrevor-based firm East Coast Adventure received a loan from the northern Ireland Small Business Loan Fund which has enabled it to expand its infrastructure and in the process create new jobs.

13 Financing Social Enterprise Ulster Community Investment Trust Ltd Linenhall Street Belfast, BT2 8AA T F E: [email protected] UCIT (Ireland) Ltd Ardee Business Park Hale St., Ardee, Co. Louth Republic of Ireland Tel/Fax +353 (0) ISO 9001 Registered Quality Management Ulster Community Investment Trust Ltd Company Reg. no. IP374 Charity no. XR36720