Depher/CPH CIC #2 The erratic and reactive way you run this causes half your problems

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Seaford Haggington said:
The accounts say the house was bought from reserves from previous years...

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...but those reserves were also generated from donations and not the profit of paid work.
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An investment property to generate a return “Which should be greater than what can otherwise be achieved in interest from the bank”…

I’m getting 5.5% on my savings. What is he getting for the rent, and is it coming from the public purse by way of housing benefit??
 
He made £72,793 in profit from paid work from 2018 to 2023. That is less than the value of the house. So the house was bought from donations. Alternatively, paid work profits have not been used for free work. Pick one.

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But even if we assume all the profits from paid work were used for free work, once added to the donations they would make up only 4% of the funding for free work over the last five years.

And over a third of donations to date are now in the house and cash in the bank.
 
He is, it seems, possibly the most not very bright, not very bright person, I've had the displeasure of reading about.

How did he think this would all work out? The only answer for me is that he is unable to think. That's why he thought this would work.

The incontinence stuff is also weird. Anyone of us who has ever suffered an "abdominal issue" short or long term, don't tend to want to tell the world in ~250 characters.
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Lazarus said:
An investment property to generate a return “Which should be greater than what can otherwise be achieved in interest from the bank”…

I’m getting 5.5% on my savings. What is he getting for the rent, and is it coming from the public purse by way of housing benefit??
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I mean if you buy the right property you can easily gross in more than 6%. But it's taxable and carries a risk. And locks up capital in a CIC created to allow the distribution of essential services rather than the holding of long term investments (all the more long term when tenanted. You can't sell a tenanted property quickly for full vacancy value). If a boiler costs £2000 (too high I know) 70k allows you to buy 35. The rent (maybe 500-600 a month max?) would only allow you to pay for one every 4 months or more... at the maximum, 3 a year.

It's a terrible investment for a CIC aimed at helping people with heating.

If it was such a great investment, why didn't they buy 5, 4 of which weren't for family? With the cash held. Could it be because it's not a great investment?

I've diverted money out of property in the last couple of years because overall it isn't the best investment, right now, for my circumstances. Which is all the more reason not to seek to rent to friends and family. Clouds your judgment on numbers.
 
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Seaford Haggington said:
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Why is he doing free work for the police and government departments? is he going round putting boilers in their offices??
given he won't do free installations in properties that are rented, it seems obscene that he's doing free work for the government estate. either it's: a lie, a misrepresentation, or he's mislead those who donate small/large sums of money to help those in dire circumstances.
 
WoolyMammoth said:
He is, it seems, possibly the most not very bright, not very bright person, I've had the displeasure of reading about.

How did he think this would all work out? The only answer for me is that he is unable to think. That's why he thought this would work.

The incontinence stuff is also weird. Anyone of us who has ever suffered an "abdominal issue" short or long term, don't tend to want to tell the world in ~250 characters.
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I mean if you buy the right property you can easily gross in more than 6%. But it's taxable and carries a risk. And locks up capital in a CIC created to allow the distribution of essential services rather than the holding of long term investments (all the more long term when tenanted. You can't sell a tenanted property quickly for full vacancy value). If a boiler costs £2000 (too high I know) 70k allows you to buy 35. The rent (maybe 500-600 a month max?) would only allow you to pay for one every 4 months or more... at the maximum, 3 a year.

It's a terrible investment for a CIC aimed at helping people with heating.

If it was such a great investment, why didn't they buy 5, 4 of which weren't for family? With the cash held. Could it be because it's not a great investment?

I've diverted money out of property in the last couple of years because overall it isn't the best investment, right now, for my circumstances. Which is all the more reason not to seek to rent to friends and family. Clouds your judgment on numbers.
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The accounts only refer to the house as an investment. There is no mention whatsoever about the role of the CIC as a landlord.
 
WoolyMammoth said:
He is, it seems, possibly the most not very bright, not very bright person, I've had the displeasure of reading about.

How did he think this would all work out? The only answer for me is that he is unable to think. That's why he thought this would work.

The incontinence stuff is also weird. Anyone of us who has ever suffered an "abdominal issue" short or long term, don't tend to want to tell the world in ~250 characters.
---


I mean if you buy the right property you can easily gross in more than 6%. But it's taxable and carries a risk. And locks up capital in a CIC created to allow the distribution of essential services rather than the holding of long term investments (all the more long term when tenanted. You can't sell a tenanted property quickly for full vacancy value). If a boiler costs £2000 (too high I know) 70k allows you to buy 35. The rent (maybe 500-600 a month max?) would only allow you to pay for one every 4 months or more... at the maximum, 3 a year.

It's a terrible investment for a CIC aimed at helping people with heating.

If it was such a great investment, why didn't they buy 5, 4 of which weren't for family? With the cash held. Could it be because it's not a great investment?

I've diverted money out of property in the last couple of years because overall it isn't the best investment, right now, for my circumstances. Which is all the more reason not to seek to rent to friends and family. Clouds your judgment on numbers.
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Throughout this whole period he’s been begging on Twitter for donations from the public for plumbing work when he’s had more cash in the bank than he can actually spend on plumbing.
The job of his CIC is not to accumulate cash or invest it for the future, it is to use profits/income for a social purpose. If you are not spending it you should not be soliciting donations.
the level of overheads/admin is insane compared to t/o and cost of sales. As I’ve said before Depher is a job (and housing) creation scheme for his family.
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BlairWaldorf86 said:
It seems so far that the CIC regulator are as toothless as the ASA.
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Probably. Does anyone know if they ever take enforcement action?
 
ChiaraRimini said:
Throughout this whole period he’s been begging on Twitter for donations from the public for plumbing work when he’s had more cash in the bank than he can actually spend on plumbing.
The job of his CIC is not to accumulate cash or invest it for the future, it is to use profits/income for a social purpose. If you are not spending it you should not be soliciting donations.
the level of overheads/admin is insane compared to t/o and cost of sales. As I’ve said before Depher is a job (and housing) creation scheme for his family.
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Probably. Does anyone know if they ever take enforcement action?
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There are many people with inadequate heating mind. When you look at the boiler install list he posted, I was shocked there were so few. Then more shocked how much money there was 1. Being kept and 2. Being used on expenses (that aren't much related to the boilers unless you have gas safe installing employees sat around doing nothing for most of the time).
 
WoolyMammoth said:
There are many people with inadequate heating mind. When you look at the boiler install list he posted, I was shocked there were so few. Then more shocked how much money there was 1. Being kept and 2. Being used on expenses (that aren't much related to the boilers unless you have gas safe installing employees sat around doing nothing for most of the time).
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it’s almost like he was much more successful at getting donations than getting new plumbing jobs, isn’t it.
 
ChiaraRimini said:
Throughout this whole period he’s been begging on Twitter for donations from the public for plumbing work when he’s had more cash in the bank than he can actually spend on plumbing.
The job of his CIC is not to accumulate cash or invest it for the future, it is to use profits/income for a social purpose. If you are not spending it you should not be soliciting donations.
Click to expand...
yes, i've given this some thought too. i had thought of it alongside charities who are constantly out with the begging bowl despite having millions (sometimes hundreds of millions) in the bank. but then i reminded myself he isn't a charity and that isn't how CICs work.

he's playing a very dangerous game here. i bet Hugh Grant wouldn't have given 20k if he'd known the half of it.
 
ChiaraRimini said:
Yeah I’m sure Hugh Grant wishes he hadn’t attached his name to this guy.
Hugh wont miss the £20k, but how many people could have been helped if the money had been used for its proper purpose instead of sitting in the bank or used to pay for vans and a house?
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He's got enough money not to miss it. But he also has deep enough pockets to seek to recover it, if he so chose to. He seems to stick to his principles so I'm wondering if anything will come from it.
 
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