Love our Sausages, Steaks, and everything in between? You could invest in the sausage shop via SEIS, an exciting scheme that benefits both the investor and the business.
- The Idea -
Since forming in 2018 The Secret Sausage Shop has been blown away with the response to its sausages, winning 5 Awards to date. We find that wherever we go to sell our sausages, the response is always the same: “That’s a bloody good sausage!”.
Bishop’s Stortford based Secret Sausage Shop was formed in 2018 by James Goodchild. His enthusiasm and creative brilliance was immediately recognised, resulting in a number of awards for his sausages allowing the business to quickly establish itself as one of the leading producers of the finest quality sausages in the UK.
We manufacture our sausages exclusively with 100% pork shoulder. Taking the time and effort to bone out the whole shoulder ourselves to control as much of the process as possible to maintain the highest standards. We then simply add herbs, spices, rusk and other seasoning to create what we believe are the best possible traditional sausages available on the market today. Unfortunately, nowadays meat producers do not have such care in their meat selection, resulting in low quality sausages that have lost the incredible flavour of times gone by. At the Secret Sausage Shop, we are proud to be bringing this incredible quality of flavour to the consumer once more.
The manufacturing facility (as the name of the business suggests) has a retail shop at the front which is accessible to both commercial and retail shoppers 6 days a week.The business also operates a catering business which has its own HACCP, equipment and insurances. This caters in a relatively small way at present catering for a few local events and private events. In addition it also operates the Secret Sausage Stall in Bishop’s Stortford selling both fresh produce and cooked foods.
By investing in the Secret Sausage Shop, an investor not only has the opportunity to become part of a new and exciting business but also sharing in the potential of commercial returns enjoyed by the likes of Heck Sausages, Musk’s Limited, Powters Sausages and many other top quality sausage producers.
Due to our past successes at local events, our awards (5!), and our commitment to bringing the highest quality sausages to the consumer; The Secret Sausage Shop is looking to expand its operations
As well as selling our sausages at retail value ourselves, we also supply a small number of local establishments, and would like to supply more quality eateries. To do this we will need to purchase a vehicle with the ability to keep the sausages and other products refrigerated. This will both increase our production/sales, and the radius of businesses to which we can supply. As we believe that our sausages are of the highest quality, we strive to sell them to the highest quality businesses.
The Secret sausage Shop has had past success at events such as ‘Bish Bash’ and the ‘Festival of flavour’, as well as catering at private events such as weddings and birthday parties. This along with our selection of awards (5!), and our commitment to bringing the highest quality sausages to the consumer; The Secret Sausage Shop is looking to expand its operations
In order to fill the growing demand for our sausages we also have the goal to purchase a catering vehicle, allowing us to take our incredible flavour sensations further afield
There are many other perks to investing, as detailed ahead...
The Secret Sausage Shop has been granted Advanced Assurance from HMRC to raise £150,000 via the Seed Enterprise Investment Scheme (SEIS)
SEIS incentivises investors to place capital into the high-risk startup sector. By offering a selection of generous tax breaks, SEIS allows investors to offset the risk associated with startup investment, while also having involvement in a potentially successful new venture. All tax breaks become active three years from the initial investment.
The tax benefits break down as follows:
Income Tax Relief
SEIS income tax relief currently equates to up to 50% of the initial investment. There are no exclusions to this tax break and it can also be spread across the current and previous year’s income tax bill. This is called a “carry-back” and it allows the investor to use any surplus income tax relief for the previous year if the current year’s income tax is reduced to zero.
Capital Gains Tax Exemption
If, after the three year investment period, you decide to sell your shares in the SEIS business you’ve invested in, you will be 100% exempt from tax on any gains you have made.
CGT Reinvestment Relief
If you have other investments separate from SEIS, and you decide to cash these in to reinvest in a project that qualifies for the scheme, your capital gains on these initial investments will be subject to a 50% reduction on tax.
The money will allow further expansion of our business operations, and also allow us to invest in taking on more members of staff to further develop activities which the Secret Sausage Shop is rolling out to hopefully deliver a good return on investors monies over the next few years.
It is anticipated that the optimum holding period of investment will be 3-5 years. This is due to the 3 year holding period for SEIS investments. Pursuant to the rules, an exact exit cannot be prescribed at the point of investment. However, at the relevant time, a decision will be made as to the exit likely to provide the highest return for all shareholders. It is very important to have various exit strategies as Investors can only make a profit upon a successful sale or buy-out. Exit Strategies to be considered are a trade sale through management buy-outs, share buy backs, and refinancing.
Please note we cannot process investments of under £1000 for SEIS due to uneconomical accounting fees, but we are happy to take these as a form of crowdfunding, and still have rewards for these amounts listed on our rewards section.
A detailed breakdown of what we intend to spend monies on, as well as a business plan for the investment period are available upon request. Due to the rules surrounding investments we cannot make these details available to the public unless they demonstrate themselves to be a ‘Sophisticated’ or ’High Net Worth’ investor.
To read more about SEIS Click Here.
- Anyone who is interested simply emails James, and we can send more info and answer any questions
- Investment is sent to the Secret Sausage Shop
- A share certificate will be issued by our accountants, with the necessary paperwork to apply for the tax relief from HMRC to follow
If you are interested, and would like to discuss further, please contact James:
Email: [email protected]
The views expressed in this document do not constitute financial advice, and the Secret Sausage Shop expects potential investors to seek out independent financial advice before investing. As with any investment your capital is at risk.
Risks when investing in equity or funds
Investing in shares (also known as equity) on does not involve a regular return on your investment unlike bonds which offer interest paid regularly.
Investing in a fund may help to diversify your investments and to spread the risk but general risks while investing in equity continue to apply. Further specific risks are set out on the applicable fund pitch page.
Please bear in mind the following particular risks for equity and fund investments:
Loss of investment or tax relief
Investing in any business may involve significant risk. It is likely that you may lose all, or part, of your investment. You should only invest an amount that you are willing to lose and should build a diversified portfolio to spread risk and increase the chance of an overall return on your investment capital. If a business you invest in fails, they will not pay you back your investment. Tax relief may also be lost due to your personal circumstances or due to the activities of the company. Although the Secret Sausage Shop has Advance Assurance from HMRC, and this is widely regarded as proof that SEIS will apply to your investment, circumstances exist where it may not apply.
Rarity of dividends
Dividends are payments made by a business to its shareholders from the company’s profits. Most companies will rarely pay dividends to their investors, and the Secret Sausage Shop is no different: it intends to spend its investment on the business! This means that you are unlikely to see a return on your investment until you are able to sell your shares. Profits are typically re-invested into the business to fuel growth and build shareholder value. Businesses have no obligation to pay shareholder dividends.
Any investment in shares may be subject to dilution in the future. Dilution occurs when a company issues more shares. Dilution affects every existing shareholder who does not buy any of the new shares being issued. As a result an existing shareholder's proportionate shareholding of the company is reduced, or ‘diluted’-this has an effect on a number of things, including voting, dividends and value.