Linskill, a thriving community hub in North Shields, Tyneside, provides a place for members of the local community to learn, relax and engage in activities. They attract more than 260,000 visitors per year and their mission is to operate as a valued, self-sustaining, community anchor organisations providing opportunities, support and guidance to local communities, responding to local needs.
Social investment has been crucial for us in addressing our rising energy costs and reducing our environmental impact. The process, while intensive, was facilitated by the support and responsiveness of our investment manager. The financial savings and sustainability it brings allow us to focus more on our community programs and the long-term maintenance of our facilities."
- Simeon Ripely, Chief Executive at Linskill and North Tyneside Community Development Trust
Challenge
The community hub faced various challenges post-covid, including a rise in operational costs largely resulting from the crippling energy prices bought in around 2022 and 2023. In real terms, this meant that yearly bills across the three community hubs they operate sky-rocketed from £70,000 to £140,000 per year.
In addition to this, they found that as they increased revenue-generating activity and therefore turnover, they found themselves ineligible for many grants they may have otherwise gone for when it comes to energy retrofit.
Solution
Through the North East Flexible Social Finance Fund, Linskill were able to access a £130,000 loan and a £20,000 grant, enabling them to purchase 120 solar panels and two air source heat pumps. They were keen to reduce their environmental impact and carbon footprint while also addressing the significant increase in energy costs. The solar panels provide the ability to track kilowatt hours saved through their energy generation, and they have already seen the benefits of this despite only completing on the project around a month ago.
Ultimately, this investment empowered them to become more financially sustainable, reducing operating costs with projected savings of around £14,000 per year, allowing them to put these savings back into essential services and activities for the local community.
Revenue
Linskill have various income streams which has led them to become largely self-reliant, with only 1% of their turnover coming in the form of grants. These streams include…
- A nursery, providing places for up to 80 children a day
- Room hire and office hire for 30 permanent tenants
- Casual rental of spaces for events and community activities
- Catering services and events
- Consultancy income
They operate one of the largest community centres in England, and the focus on being self-sustaining has empowered them to thrive, not just survive, against a backdrop of uncertain economic contexts.
Impact
The investment enabled the organisation to meet three key objectives; a reduction in carbon footprint, lowering their overall environmental impact, a reduction in operating costs freeing them up to spend more on what really matters and investment into the long-term maintenance and upgrade of their building, which requires constant upkeep.
Through meeting all of these objectives, Linskill is able to stick to what they know best; delivering essential social impact to their local communities. As one community member put it…
“Linskill is very much part of the local community – we brought the grandchildren to classes here, use the café regularly and always look out for events that may be of interest.”
- Linskill Centre Community Member
We were really pleased to work with Simeon and the Trustees to structure finance via the NECA FSF facility to complete their project to maximise their own power generation to mitigate the energy price rises and volatility. The savings generated help towards managing operating costs, securing staff and ensuring the great community base that Linskill provides for many different community groups continues!