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Really Local Group

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Really Local Group brings independent cinema, music & culture to doorsteps across the UK.

103%
 - 
Funded 5 Aug 2022
£500,016 target
£541,103 from 127 investors
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Business overview

Location London, United Kingdom
Social media
Website www.reallylocalgroup.co.uk
Sectors Entertainment Non-Digital B2C
Company number 11050534
Incorporation date 7 Nov 2017
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Investment summary

Type Equity
Valuation (pre-money) £21.3M
Equity offered 2.37%
Tax relief

EIS

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Business highlights

  • We have 5 operating venues; fully recovered from the pandemic
  • Secured pipeline of further 6 venues all operational by 24
  • Developments de-risked thru grants & capital contribution > £15m
  • 2nd Seedrs campaign: raising £1m+ to develop portfolio & grow
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Key features

  • Secondary Market
  • Nominee investment min. £16.35 +

Idea

Introduction

Really Local Group (RLG)'s mission is to put the" heart put back into the high street" by operating venues with cinema, music & community at their core.

With the imminent launch of the Ealing Project (ealingproject.co.uk), Ealing's 1st cinema in 14 years, RLG has 5 operating venues (Catford Mews, Peckham Levels, Hackney Bridge & Reading Biscuit Factory), all fully recovered from the pandemic & related restrictions.

RLG has secured 7 more venues, such as Sidcup Storyhouse, Throwley Yard: Sutton, Canning Town, Bermondsey & The Gramophone (EMI vinyl factory in Hayes), all aiming to open by 2024. We have ambitions to have 30+ sites by 2027.

Our pipeline is significantly de-risked through negotiated grants and capital contributions in excess of £15m, boosting ROI.

ESG is the heart of everything we do: we retrofit existing spaces and re-use materials; we are a Living Wage employer.

Substantial accomplishments to date

Despite the headwinds created by the pandemic and the related government-enforced hospitality restrictions since RLG's 1st successful Seedrs campaign in October 2020, our business has not only survived but thrived, a substantial accomplishment in its own right...!

Additional highlights include:

May 21: Catford Mews re-opened.

Aug 21: The Reading Biscuit Factory, Reading's only independent cinema and event space launches.

Oct 21: Agrees on terms to take over the entity formally known as Makeshift, bringing Peckham Levels and Hackney Bridge into the Group.

Jan 22: Assumes day-to-day control of Peckham Levels and Hackney Bridge along with 25 employees across a number of skillsets, further boosting our team's capacity.

Feb 22: Crispin Lilly, ex-CEO of Everyman Cinema, joins as Business Development Director with day-to-day responsibilities for RLG cinema sites.

Mar 22: Announced our latest project, Throwley Yard, a collaboration with the London Borough of Sutton.

Apr 22: Held our 1st ever annual general meeting at our Ealing development, giving existing investors the chance to ask company management questions.

May 22: Agreed terms for our 1st site outside of the Southeast (to be announced this Summer).

June 22: The Ealing Project, Ealing's only combined multiscreen cinema, live music and digital art exhibition space, launches at British Land's Ealing Broadway centre.

Monetisation strategy

RLG has a number of diverse revenue streams, which we believe gives our business a unique financial resilience:

• Cinema ticket revenue: our average price is £6.50-£7.50.

• Live music: By the end of 2022, we will have 4 bespoke live music venues with capacities of up to 400 people, allowing us to host concerts and other acts.

• Studios, maker spaces and co-working: over 240 businesses are based at our venues, where we charge a monthly rent.

• Food & drink: We stock a range of local goods and directly sell beer, snacks, coffee & everything in between (yes, popcorn too!) as well as offer concessions to local entrepreneurs where we take a revenue share.

• Special events: We hold a wide range of events, from late-night birthday parties to weddings and more.

• Pre-show advertising: We can earn c. £8k/quarter per cinema.

• Memberships: A range of memberships, from student to family. We have sold almost 2,500 in the past 12 months.

• Consulting: Monthly retainers to assist developers with their cultural strategies.

Use of proceeds

Your investment will be used wisely across a number of RLG venues, allowing us to unlock site-specific projects such as:

• Opening a 400-capacity state-of-the-art live music and events venue, Block C @ Hackney Bridge, later this year.

• Refurbishments and improvements to the food and bar area of Peckham Levels.

• Development of a new theatre in the disused ground floor space of Peckham Levels.

• Opening a new 400-capacity DIY live music space, The Tail @ Catford Mews.

• Finishing fit-out works at the Sidcup Storyhouse.

• Finalising The Gramophone development plans to start on site later in the year.

Any remaining funds will be used to progress our ambitious pipeline and to undertake feasibility works on future potential sites.

Key Information

Outstanding debt

The company has the following outstanding loans:
- £200,000 Coronavirus Business Interruption Loan Scheme (CBILS) loan from Natwest at an interest rate of 4.2% per annum. The loan is to be repaid on 20 May 2025 or earlier.

- £500,000 loan with Architectural Heritage Fund at an interest rate of 6.5% per annum. The loan is to be repaid on or before 30 June 2023. The loan is secured by a 1st charge on the development land in Hayes.

The funds raised from this investment round will not be used to repay these loans.

Group Structure

Investors in this round are investing in and will become shareholders of Really Local Group Limited (11050534). This is the holding company for the group. Each site has its own SPV which is 100% owned by the parent company. A CIC, Really Local Fund, also exists and is fully owned like the other subsidiaries.

The founder of Really Local Group Limited, Preston Benson, is the founder and director of Really Local Developments Limited (12207504). The company was set up to deliver the works on the Reading Biscuit Factory, a contract requirement. The entity is no longer trading and is not intended to be used going forwards.

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If you successfully purchase a share lot of this business, you will be granted access.

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Only shareholders can access this page

If you successfully purchase a share lot of this business, you will be granted access.

Buy shares

Only shareholders can access this page

If you successfully purchase a share lot of this business, you will be granted access.

Buy shares

Only shareholders can access this page

If you successfully purchase a share lot of this business, you will be granted access.

Buy shares

Investing involves risks, including loss of capital, illiquidity, lack of dividends and dilution, and should be done only as part of a diversified portfolio. Please read the Risk Warnings before investing. Investments should only be made by investors who understand these risks. Tax treatment depends on individual circumstances and is subject to change in future.

This campaign for Really Local Group has been approved by Seedrs Limited (trading as Republic Europe) ("Republic Europe", "us" or "we"), as of 14 June 2022 as a financial promotion. Republic Europe is authorised and regulated by the Financial Conduct Authority with firm reference number 550317. In approving this campaign, Republic Europe has concluded that the information, taken as a whole, is "fair, clear and not misleading." This means that for factual statements we have reviewed evidence of their accuracy, and that for aspirational statements we believe they are phrased appropriately in light of their speculative nature. You should note that in the case of factual statements, the evidence we review is provided by the business, and we do not audit it, which means that we may not be able to identify forged or altered evidence. You should further note that in the case of aspirational statements, the nature of the type of businesses presented on the Republic Europe platform is such that they are likely to have high ambitions, and we may approve statements that convey those ambitions even where we do not believe, or we do not have a view on whether it is likely, that they will be fully realised. The pre-money valuation and investment sought in the campaign are those set by the business: they are not reviewed or established by us, and the valuation is not an independent view of what the business is worth. Given the nature and type of businesses presented on the Republic Europe platform, it is possible that the business has very little cash remaining prior to receiving this investment, and the investment sought may be necessary for the business's on-going existence.

Republic Europe does not make investment recommendations to you. No communications from Republic Europe, through this website or any other medium, should be construed as an investment recommendation. Further, nothing on this website shall be considered an offer to sell, or a solicitation of an offer to buy, any security to any person in any jurisdiction to whom or in which such offer, solicitation or sale is unlawful. Republic Europe does not provide legal, financial or tax advice of any kind. If you have any questions with respect to legal, financial or tax matters relevant to your interactions with Republic Europe, you should consult a professional adviser.

Tax Relief (SEIS)

This business is eligible for SEIS relief - providing qualifying investors with income tax relief of 50% of their investment and certain other tax reliefs. Tax treatment depends on individual circumstances and is subject to change in future. Click to learn more.

Tax Relief (EIS)

This business is eligible for EIS relief - providing qualifying investors with income tax relief of 30% of their investment and certain other tax reliefs. Tax treatment depends on individual circumstances and is subject to change in future. Click to learn more.

Valuation (pre-money)

Valuation rounded from £21,264,418

This is the fully-diluted pre-money valuation of the business (i.e. before the new investment comes in and including issued options and other equity interests). In contrast, the post-money valuation is based on inclusion of the new investment in the value.

It is calculated as the pre-money valuation plus the amount of new investment. e.g. If Company A is ascribed a pre-money valuation of £1,200,000 by prospective investors investing £300,000, its post-money valuation is £1,500,000.

The investee business is responsible for setting its own valuation, it has not been prescribed by Seedrs.

Pitch type

Investing in a regular equity campaign is the simplest and most common way to invest in a startup. You decide which business you want to invest in, and if the campaign hits its funding target then you will become one of their shareholders. As the company becomes more valuable, so do your shares; allowing you the opportunity to share in the future success of the business.

Learn more about pitch type on Seedrs

Equity Offered

The equity offered is the percentage of the company’s shares being issued in return for the amount of investment raised.

When the amount raised is less than 100%, the equity offered is based on the target raise. Once the company has raised over 100% it is based on the total raised.

In some scenarios, entrepreneurs may accept additional direct investment after closing their Seedrs campaign. Provided this is within 6 months of the closing and on the same terms, we do not typically offer pre-emption rights on that extra investment (where you have the opportunity to invest again to maintain your percentage shareholding).

Learn more about investing and pre-emption rights.

Nominee investment

This shows if you are able to choose, when making an investment, that you be represented by, and your shareholding be managed by, the Nominee investment.

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Custodian

If you invest in this Campaign, Seedrs will act as Custodian rather than provide our standard nominee service. This is due to the fact that the business is not directly involved in the share sale and Seedrs will not benefit from any rights under a shareholder agreement. As a result, Seedrs will handle administrative tasks as we do normally, but you will not have information or voting rights, updates from the business, preemption on future fundraising, or ongoing support about business trading activity.

Learn more about Custodian here

Secondary market

This shows if the business has opted-in or opted-out of allowing its shares to be bought and sold on the secondary market.

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Direct investment

This is an option to invest and hold shares 'directly' in the company (rather than via the Nominee investment). This option is only available to those investing over the threshold amount, which is determined by the fundraising company.

If you choose to hold your shares directly, you will be responsible for any contractual or administrative arrangements with the company you are investing in.

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Payment options

We are not able to accept card payments for investments into this sector. You can pay for your investment by creating a bank transfer, using funds in your investment account or create a Pay by Bank payment. Your investment will only be completed once the funds have reached our account.

Business Involvement

This Campaign offers shares for sale in business that is not directly involved in this Campaign or the sale. As a result, the Campaign and post-investment experience, including investor rights, will differ from a business-led campaign on Seedrs. Most notably, the business will not engage with investors in the discussion forums both during and after the sale or provide any updates to investors.

Learn more here

Payment options

We are not able to accept Pay by Bank payments for investments into this sector. You can pay for your investment with a card payment, by creating a bank transfer or by using funds in your investment account. Your investment will only be completed once the funds have reached our account.

Drawdowns

This campaign offers the ability to pay for an investment by drawdowns.

Security Token

A security token is a digital asset that represents ownership or other rights. It is a digital form of traditional investments. In the future, you may be able to trade your investment through compatible exchanges.

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