As a Registered Society, Community Power Cornwall may use its profits to promote its objectives and may pay interest to members on their shareholdings sufficient to attract and retain capital in furtherance of our social purpose.
To date we have exceeded or achieved the share interest payments expected by our last two share offer documents. We expected to pay 2% pa related to year ending Oct 2013 and actually paid out 4%. We expected to pay 5% pa related to year ending Oct 2014 and did pay out 5%.
On our standard shares we expect to pay interest at 4.5% pa related to year ending 31st October 2015 onwards. This represents an Internal Rate of Return (IRR) of 4.5% over 10 years and 4.5% over 5 years. The expected IRR for Enterprise Investment Scheme eligible investments is 8.75% over 10 years and 11.92% over 5 years.
On our microgeneration shares we expect to pay interest at 3% pa related to year ending 31st October 2015 onwards. This represents an Internal Rate of Return (IRR) of 3% over 10 years and 3% over 5 years. The expected IRR for Enterprise Investment Scheme eligible investments is 6.99% over 10 years and 10.22% over 5 years.
In order to keep administration costs to a minimum, interest payments of less than £5 will be held by Community Power Cornwall and can be paid to members when the accrued value exceeds £5.