Cumbria Supply Chain Network Group

David Neil BGN Ltd Greensyke House, Lamplugh, Workington CA14 4SA Tel/Fax 01946 861418

Cumbria Industrial Catalogue.

7th Meeting on 2nd November 1999 at 4.00pm -  Westlakes Science & Technology Park.

1.        Present:    D. Neil (Chairman), P. Caunce, R. Gilbert, H. Brown, E. O’Keefe, J. Knox

 

2.        Apologies: Nicholas Steven

 

 

3.        Minutes of Meetings 5 & 6: Accepted.

 

4.        Matters Arising: Edward O’Keefe reported that he had created a web site for viewing project/CIC information. This can be viewed on www.iprocure.co.uk/project. User name - CIC, password -********. Action on members: Please e-mail edward@isprojects.co.uk to give your preferences for user name & password.

In view of P. McGahon confirming his resignation as a Director it was proposed by E O’Keefe, seconded by P.Caunce and agreed unanimously that Brian Lightowler, Manager of Business Link Cumbria be invited to join the board of CIC.

 

5.        Project Plan Phase 1: Edward explained that to have 2 buyers & 2 suppliers the cost would not be significantly less than that for larger numbers. In order to complete phase1 working system by December the following were agreed: System to: list and show details of suppliers products, enable requisition/order to be made and forwarded to supplier, receive orders and notify by e-mail of order receipt. System to operate on purchasing cards by-passing  CIC. This initially simplifies the system and overcomes the legal issues of liability. It is noted in phase1 there is no direct connection between delivery & payment.  It was agreed that ISPL will complete by 10 December for a max cost of £8k. Actions D. Neil to arrange Marconi Marine as Buyer 1 with Gilberts & Deltawaite as suppliers and to agree Buyer 2 by end November.

 

6.        Genesis Discussions: D. Neil reported that no further discussion had taken place with H. Broatch but this would be arranged later in November. However Hazel had visited ISPL and appeared impressed. There was a suggestion that CIC could be appropriate for CCC purchases. Edward advised that he was seeking information that could facilitate funding via Genesis.

 

 

7.        Financial Report: Peter Caunce reported that £2k had been paid to ISPL and a cheque was being issued for Richard expenses re-the conference.

 

8.        Shareholder report: Additional cheques for ‘B’ shares been received from: TJ Services, Deltawaite, Peter Gawne-Cain, D.B. Neil, J. Neil, Mrs R. Gilbert. It was recommended that we seek advice on the Enterprise Investment Scheme- Action P Caunce to investigate with G. Lamont.  The Articles & Memorandum are being discussed at Lamont Pridmore and we await their recommendation. P Caunce to seek advice from Lamont Pridmore on the issue of further shares eg what is the recommended price of shares say £1k (or less) and existing holders being given multiple holdings. Once resolved share certificates need to be issued. In the meantime a communiqué to investors is highly desirable. This to be achieved via iprocure.co.uk/project.

 

 

9.        Next Steps: Nicholas had produced a document on 25 October and requested it be taken as proposals at this meeting. A) Phasing – two buyers/two suppliers - agreed. B)  Genesis: agreed  DBN/RG/H.Bell should meet with H. Broatch. C) Executive Structure: It was proposed by P. Caunce & seconded by R. Gilbert that David Neil be appointed Chief Executive. This was agreed unanimously. D) Functional Groups: It was agreed that Edward O’Keefe should be Technical Project Leader for the Product Catalogue Group and the team should include RG/PC/NT/. A separate team with David Heron as Technical Project Leader should be established for the Services and Engineering Group, the team comprising HB/JK. This team to become operational in first quarter 2000 and to liase with the Consortium project for CSCNG. E) Board Appointments: It was agreed that CIC invite the CPI nominee David Magrath to join the board of CIC Ltd for a period of two years. Proposed by P Caunce, seconded by R. Gilbert and agreed unanimously. It was proposed by H. Brown, seconded by R. Gilbert and agreed unanimously that David Neil be appointed a Director of CIC Ltd. F) Protected Web site: It was agreed that E.O’Keefe would produce a site for the development of the business plan etc. Already achieved see 4) above.

David Neil reported on discussions with J Haydon, NatWest Bank. A) BACS payment. There are two methods of payment. Either the Buyer sets up a Standard Direct Debit for CIC to take unspecified sums out from time to time giving notice in advance to the Buyer or payment is originated by the Buyer for each payment. There is a file charge of £4.40/file and a transaction charge per payment of 17.6p. Clearly if the BACS file has CIC as one of dozens the cost is low. NatWest has software which is Windows compatible and costs £750 +support charges. This is not an internet facility. B) John felt the major issue for CIC is a legal one. CIC should take legal advice on the liability CIC would have for the default of a supplier eg say a supplier goes bankrupt after goods had been paid for, who is financially liable? P. Caunce suggested the Fed of Small Business could be a source of information. E O’Keefe undertook to seek legal advice. Any other advice would be most welcome.

 

10.     AOB:  Edward O’Keefe undertook to update the business plan and cash flow. It was agreed that we need to communicate with the new investors and issue the share certificates. Communication can be achieved using the web site, but Lamont Pridmore is still resolving the issue of share certificates. We need to take professional advice on the nominal value of each share. It is perceived that £5k per share is excessive. Lamont Pridmore should recommend a more realistic value. Action Peter Caunce to progress.

 

11.     Next Meeting: Monday 13 December 3:00pm at Furness Internet, Barrow. Note: there will be an informal get-together following the 1Dec event at Armathwaite Hall.

 

 

 

 

David Neil 3 December 1999