CHESTER PEARCE ASSOCIATES UK LIMITED

Funeral and related activities

Funds Raised

£55,000.00

Final AER

19.96%

Loan term

60 MONTHS

Auction Closed

2019-09-05

Micro Loan Opportunities
Buy Capital Seller's
Premium
Price Buyer's
Rate
BuyBack
£10.00 +2.50% £10.25 18.83%
£10.00 +3.90% £10.39 18.19%
£10.00 +4.34% £10.43 18.00%
£10.00 +5.00% £10.50 17.70%
£10.00 +5.50% £10.55 17.48%

About the Business

Company Name: CHESTER PEARCE ASSOCIATES UK LIMITED Company Number: 07712388
Business Type: Funeral and related activities Years Trading: 5-10 years
Business Location: Dorset

About the Risk

Risk rating

C

Default rate

13.00%

Bad debt rate

5.33%

About the Security

Security Offered:

Personal Guarantee - Stephen Nimmo

Est. Equity: 0.00

Personal Guarantee - Judith Nimmo

Est. Equity: 50000.00

Risk Indicators Identified:

Below Average Business Credit Rating
A 3rd party credit rating agency has indicated that this business is above average risk.
Low Liquidity
This business has a lower than average ratio of liquid assets to current liabilities
Low Quick Ratio Score
The quick ratio is an indicator of a company’s short-term liquidity. The quick ratio measures a company’s ability to meet its short-term obligations with its most liquid assets
High Debt-to-Equity Ratio
This company has a higher than average level of company debt in relation to its equity
Losses Identified
This business has recorded losses in at least one of the last two financial years. See the finances tab for more information
Satisfied CCJs
The business has incurred County Court Judgements in the past. Whilst now satisfied, this can still be indicative of poor creditor management
Disclosures
This listing contains disclosures from ReBS. Lenders are encouraged to read them in the profile tab

Important Files

Who are we?

This is a returning borrower who took a loan for £25,000 in November 2016. This was fully repaid in November 2018. Lenders can view the original listing and repayment history here

Chester Pearce is 8 years old. It was borne out of a real sense that given the right people and structures, we could offer a service to bereaved families that far exceeded the usual things being provided by established funeral directors. And so, on 20th July 2011, Chester Pearce was incorporated. We are very proud that we began from nothing, and have grown over the eight years we have been operating. From my parents third bedroom where I went each day to write letters and emails raising the profile of the business, not to mention just one funeral to our name at that stage in 2011, to two fully equipped funeral homes, six full time and eight part time staff, and approaching 250 funeral in 2018, we have achieved solid and continuous growth.

In that time, we have faced a number of challenges, but I am pleased to say, overcome each of them as they have presented, and learned from them. When we began, we had no facilities, relying on the help of other funeral homes locally and there were considerable gaps between funeral instructions. This showed us that sitting and waiting for the phone to ring was simply not an option, and so much time was spent out in the communities we wanted to serve, building strong relationships with local hospitals, nursing homes, care home and the like. We could not have known at the time how important that groundwork would be, but as a result of it, we have now secured contracts with two hospitals and a local authority. We also created a strong relationships with local hospices, and a large group of care homes, and these recommend our service to this day.

We learned quickly that surviving on waiting for the phone to ring was something we should not do, and this immediately set us apart from 95% of the other funeral directors in the area. The very fact we were new, and able to mound ourselves as our clients required enabled us to offer a service that people began to embrace.

In 2014, we took the difficult but necessary decision to open our first funeral home In Bournemouth. Difficult because of the investment required, but we were desperately needing more control of our own processes and so Westbourne became the location for Chester Pearce’s funeral home. In spite of the financial pressures the renovations brought, it proved to be the best decision we could have taken. Opening in June, we had completed circa 13 funerals in the first six months prior to opening, but in the six months after opening, we completed a further 50 funerals. Proof if it were needed that the high street presence we had created, worked!

Our second funeral home opened in 2017, this time in Poole, and with the usual predictions of low numbers in the first year ringing in our ears, Charlotte set out to prove them wrong. The expected funeral numbers in the first year are in the region of 12 – 15. In our first year in the new funeral home, we completed over fifty. 2018 saw continued growth, and 2019 looks to be growing again. To see families coming back again and again to both funeral homes is so rewarding.

So how do we see our growth over the coming period. Our numbers have shown continuous rises year on year and based on the first six months of 2019, this trend is continuing. As they become available, we will tender for further contracts which will add to or existing portfolio. But it isn’t just funeral provision that we are seeing increase. Our training and education provision is also growing, especially with The Emergency Planning College, Disaster Management International and Greenfuse.

Trends in the funeral industry are changing, and many of those local funeral directors who have been established for many years have struggled to move with those trends. We capitalise on this every day, having put in place at the start, a flexible structure to the business which enables us to offer a blank canvas approach to funeral provision, where families can make their own decisions for us to implement.

Read more

Loan Offers

What is the loan for?

When we opened our first funeral home in 2014, it was always an expectation that, if successful, we would eventually outgrow some of the facilities. I felt that our current mortuary provision would be able to cater for in the region of 150 funerals per year. The mortuary area provides full facilities for looking after those who have died, including embalming etc, but has a maximum capacity. As we have continued to grow, it has become apparent that the mortuary is under strain, and in order for us to continue looking after people in the proper, dignified fashion, we need to create more space. This would involve knocking through to the bathroom next door, relocating that bathroom, and then re-doing the new space to bring it into line with our mortuary expectations. In order of us to continue with the current rate of growth, we must make this provision to ensure we are properly looking after those who have died and come into our care.

The second part of the development relates to the provision of a service room for funeral services to take place. At present, there is little choice for families in the area but to use the Crematorium or Cemetery chapels, or churches. However, society is changing and an ever larger proportion of families are not religious so a church is out of the question, and the crematorium chapel is just a faceless, impersonal room.

We want to provide the fullest service we can for our families, and so feel that if we can offer a room where the funeral service can take place, where families can come to personalise the space, and make it more about them and their loved one, this will be another step away from what most of our competition is doing.

So why is this a good idea? Above all, it is about continuity of care. It enables us to offer an “under one roof” service to families which can only enhance the support we already offer. But not only that. In the case of the majority of our funerals, we look after four or five people, close family, and only they get to see our facilities. By having control of a service room as well, we immediately open up our facilities not to just four or five immediate family, many more members of the public who get to experience not just our service and how well we conduct ourselves, but our facilities too. There can be no greater advert that for people to actually experience what we offer, but of course, this only usually happens when a person dies. This can only stand to increase our funeral numbers, and with it, our income and it is this which will enable us to comfortably satisfy the loan repayments.

By carrying out these two vital projects, we will secure the future of the business for the next five/ten years.

Why consider investing?

As the saying goes, the only two guarantees in this life are death and taxes. If I had a pound for every time someone said “you’ll never be out of work, will you!”, I wouldn’t be looking for people to invest!

So, why invest? The simplest and most obvious answer is, that we have a track record with Rebuilding Society already. This amazing way to raise investment helped us create our second office in Poole. Without that support, we would not have been able to open there. We had our loan over a two year period, and paid it off in 2018. No payments were late or missed, and it is a way to secure funding that I don’t hesitate to use again.

Five years is a long time in business, and the company today is very different to then, and yet, when it comes to securing finance, we are often judged on the last five years. Rebuilding Society is much more focused on details which enables you to get to know us. We’re not just a bunch of figures on a screen, or a credit score, and so we want you to know what and who you’re investing in.

Chester Pearce is a remarkable company, with remarkable and committed staff. It is their hard work which is responsible for such positive growth, and means your investment is in safe hands. offering the very highest standards of care to those who have died and their families, and this is the reason we have gone from zero to 250 funerals plus per year, in eight years.

While the provision of the mortuary extension may not be seen to increase income or profit, it is an essential part of our progression. Where income and profit will be found, is the provision of the service chapel. It will undoubtedly increase funeral numbers as families choose the option which means they can avoid church or crematorium chapels. With the average expected charge for the chapel being £300.00 per service, we can see where the additional funds will come from to support the loan, and thus pay for both projects.

Chester Pearce has now been established for eight years, and in that time, has shown very steady growth, year on year, both in Funeral numbers and in financial terms. We are looking after families who have used our service several times before, which shows that we are a truly established company in the community.

Director Explanation - 2017 Losses

In relation to the question about why there were losses in 2017, the simple answer is Canford Heath. This was our second office that Rebuilding Society very kindly helped us fund, and while their funding got us most of the way to opening, there was still significant expenditure required to complete the project.

With a Funeral home, there can be no sub measures, and so everything has to be in place prior to opening, so there was considerable expenditure bringing the Funeral home up to the standards we expect of ourselves. In addition, there was the need to employ a further member of staff to assist with the office.

Through 2017, the Canford Heath office began to establish itself with funerals coming from the local community, but we were also able to secure the local authority contract and the Pool Hospital contract. Both of these were only secured by having this office. You will see from 2018 and into 2019, that turnover has increased. In its first full year, Canford Heath office performed in the region of 60 funerals (the expected average for a new office is between 12 and 15), and through 2019, it continues to grow. But in those early days, there was considerable pressure financially, which I hope explains the losses in that particular year.

Security

This loan is to be secured by way of Personal Guarantees.

PGs will be provided by the sole director, Mr Stephen Nimmo, and his mother, Judith Nimmo.

Stephen is not a homeowner and as such, the realisable value assigned to this PG is negligible. The PG will therefore be used as a tool to bring a reluctant debtor to the table or to achieve an Income Payment Order / Income Payment Arrangement rather than a direct bankruptcy dividend.

A PG will also be provided by Stephen's mother, Judith Nimmo. Judith is the sole owner of her personal residence, a property with an estimated value of £310,000 and £125,000 estimated equity. Judith's estimated net worth is £110,000. As per our PG policy, the assigned value of this PG as displayed on the overview tab has been capped at £50,000.

DateAmountCapitalInterestReceived
12/10/2019£1,455.82£541.17£914.65Not Due
12/11/2019£1,455.82£550.17£905.65Not Due
12/12/2019£1,455.82£559.32£896.50Not Due
12/01/2020£1,455.82£568.62£887.20Not Due
12/02/2020£1,455.82£578.07£877.75Not Due
12/03/2020£1,455.82£587.69£868.13Not Due
12/04/2020£1,455.82£597.46£858.36Not Due
12/05/2020£1,455.82£607.40£848.42Not Due
12/06/2020£1,455.82£617.50£838.32Not Due
12/07/2020£1,455.82£627.77£828.05Not Due
12/08/2020£1,455.82£638.21£817.61Not Due
12/09/2020£1,455.82£648.82£807.00Not Due
12/10/2020£1,455.82£659.61£796.21Not Due
12/11/2020£1,455.82£670.58£785.24Not Due
12/12/2020£1,455.82£681.73£774.09Not Due
12/01/2021£1,455.82£693.07£762.75Not Due
12/02/2021£1,455.82£704.59£751.23Not Due
12/03/2021£1,455.82£716.31£739.51Not Due
12/04/2021£1,455.82£728.22£727.60Not Due
12/05/2021£1,455.82£740.33£715.49Not Due
12/06/2021£1,455.82£752.64£703.18Not Due
12/07/2021£1,455.82£765.16£690.66Not Due
12/08/2021£1,455.82£777.89£677.93Not Due
12/09/2021£1,455.82£790.82£665.00Not Due
12/10/2021£1,455.82£803.97£651.85Not Due
12/11/2021£1,455.82£817.34£638.48Not Due
12/12/2021£1,455.82£830.94£624.88Not Due
12/01/2022£1,455.82£844.75£611.07Not Due
12/02/2022£1,455.82£858.80£597.02Not Due
12/03/2022£1,455.82£873.08£582.74Not Due
12/04/2022£1,455.82£887.60£568.22Not Due
12/05/2022£1,455.82£902.36£553.46Not Due
12/06/2022£1,455.82£917.37£538.45Not Due
12/07/2022£1,455.82£932.63£523.19Not Due
12/08/2022£1,455.82£948.14£507.68Not Due
12/09/2022£1,455.82£963.90£491.92Not Due
12/10/2022£1,455.82£979.93£475.89Not Due
12/11/2022£1,455.82£996.23£459.59Not Due
12/12/2022£1,455.82£1,012.80£443.02Not Due
12/01/2023£1,455.82£1,029.64£426.18Not Due
12/02/2023£1,455.82£1,046.76£409.06Not Due
12/03/2023£1,455.82£1,064.17£391.65Not Due
12/04/2023£1,455.82£1,081.87£373.95Not Due
12/05/2023£1,455.82£1,099.86£355.96Not Due
12/06/2023£1,455.82£1,118.15£337.67Not Due
12/07/2023£1,455.82£1,136.75£319.07Not Due
12/08/2023£1,455.82£1,155.65£300.17Not Due
12/09/2023£1,455.82£1,174.87£280.95Not Due
12/10/2023£1,455.82£1,194.41£261.41Not Due
12/11/2023£1,455.82£1,214.27£241.55Not Due
12/12/2023£1,455.82£1,234.46£221.36Not Due
12/01/2024£1,455.82£1,254.99£200.83Not Due
12/02/2024£1,455.82£1,275.86£179.96Not Due
12/03/2024£1,455.82£1,297.08£158.74Not Due
12/04/2024£1,455.82£1,318.65£137.17Not Due
12/05/2024£1,455.82£1,340.58£115.24Not Due
12/06/2024£1,455.82£1,362.87£92.95Not Due
12/07/2024£1,455.82£1,385.54£70.28Not Due
12/08/2024£1,455.82£1,408.58£47.24Not Due
12/09/2024£1,455.82£1,432.00£23.82Not Due
Total:£55,000.00£32,349.20