Invest in sustainable cycling

Community bond
Temple Cycles
IFISA eligible
Minimum investment £50
Term 7 years
Interest 6% per year
£625,000
Raised
£625,000
Target
100%
£400k min. raise

Temple Cycles

Founded in 2014, Temple Cycles are a Bristol-based designer and manufacturer of high-quality bikes and an established lifestyle cycling brand. They offer a range of timeless bikes for a broad range of leisure pursuits, from urban commuting to multi-terrain adventures.  

Sustainability lies at the heart of their offer and a long product lifecycle is key to this; their bikes benefit from a lifetime warranty, a move designed to challenge the throwaway culture associated with many consumer brands, including within the cycling industry.  Most bike brands use materials such as carbon fibre which are harder to recycle, have a short product life cycle and a high carbon footprint. Temple Cycles use steel to make their bikes which comes from 70% recycled sources and can be recycled at the end of its life. Sustainable production is also integral to their ethos; from the materials used, to the choice of partnering suppliers and the production processes adopted.
 

For the 12 months ending 30 October 2021, Temple Cycles generated £1.9 million turnover, £65,000 of net operating profit and had £362,000 of net assets.

The bond offer

Temple Cycles are seeking to raise £625,000 to support further investment in their electric bike offer, to refinance existing debt and to build up inventory levels to ensure they can service growing demand and manage supply chain pressures across the industry. 

IFISA eligible

Temple Cycle bonds are eligible to be held in a Triodos Innovative Finance ISA (IFISA). For an investment to qualify for the 2021/22 ISA allowance, the payment must have been received by 23:59 on 5 April 2022. As with all ISAs, there are eligibility criteria and you receive interest tax-free. ISA eligibility does not guarantee returns or protect consumers from losing their money. 

To invest in Temple Cycle bonds through a Triodos IFISA, select the ‘Invest through IFISA’ option. This selection will add to your current year IFISA or will open a new IFISA if you haven’t previously opened one.

Transferring an existing ISA

If you want to invest by transferring an existing ISA to a Triodos IFISA you must first request the transfer. You can do this under ‘Account’ once you’ve become a registered user of the platform. Your ISA transfer must be completed first, before you make an application for bonds.

Key terms

Issuer
Temple Cycles Limited 
Target amount
£625,000
Term
7 years, repayable on 30 June 2029
Minimum investment
£50 
Minimum raise
£400,000. If less than £400,000 is raised, monies will be returned to investors with no accrued interest. 
Interest
6% gross per year. Payable in arrears on 30 June each year (paid net of UK basic rate tax unless held in an IFISA). Payment of interest and repayment of capital are not guaranteed. 
Early repayment
Temple Cycles has the right to repay the bonds without penalty from 30 June 2025.
Unsecured
The bonds are unsecured, which means that bondholders will rank equally with Temple Cycles' other unsecured creditors and behind secured and preferential creditors on insolvency.
Covenants
A gearing covenant applies which places a limit on the company’s total permitted borrowings. Whilst the bonds remain outstanding, repayment of any directors' loans or payment of dividends to any shareholder are only permitted subject to the retention of a minimum cash balance of £50,000 after any such payment. An annual dividend cap also applies. A breach of any covenant constitutes an event of default.
Transferability
Bonds are transferable but are not listed on any investment exchange which means that bondholders will have to find a willing buyer and agree a purchase price with them, which in practice may not be easy. Investors should be prepared to hold the bonds for their full seven-year term.
Timetable
Closes on 3 May 2022, unless fully subscribed earlier or the offer is extended. Bonds are allotted 14 days after close and investors start to accrue interest from that date.  
Capital at risk warning
Past performance is not an indication of future performance. Capital is at risk and returns are not guaranteed. Investors should read the offer document in full, including the risks section, before deciding whether to invest. 

Offer is closed

Offer Closed

Invest in sustainable cycling

Temple Cycles

The COVID-19 pandemic has helped the cycling industry to flourish and we believe this will be a lasting legacy. As the UK seeks to decarbonise its transport system, active travel and e-mobility now have strategic importance which will help strengthen the growth opportunities within the cycling industry, as too will the continuing national focus on physical and mental wellbeing.”

Matthew Mears, Founder and Director, Temple Cycles Limited

Temple Cycles

Founded in 2014, Temple Cycles are a Bristol-based designer and manufacturer of high-quality bikes and an established lifestyle cycling brand. They offer a range of timeless bikes for a broad range of leisure pursuits, from urban commuting to multi-terrain adventures.  

Sustainability lies at the heart of their offer and a long product lifecycle is key to this; their bikes benefit from a lifetime warranty, a move designed to challenge the throwaway culture associated with many consumer brands, including within the cycling industry.  Most bike brands use materials such as carbon fibre which are harder to recycle, have a short product life cycle and a high carbon footprint. Temple Cycles use steel to make their bikes which comes from 70% recycled sources and can be recycled at the end of its life. Sustainable production is also integral to their ethos; from the materials used, to the choice of partnering suppliers and the production processes adopted.
 

For the 12 months ending 30 October 2021, Temple Cycles generated £1.9 million turnover, £65,000 of net operating profit and had £362,000 of net assets.

The bond offer

Temple Cycles are seeking to raise £625,000 to support further investment in their electric bike offer, to refinance existing debt and to build up inventory levels to ensure they can service growing demand and manage supply chain pressures across the industry. 

IFISA eligible

Temple Cycle bonds are eligible to be held in a Triodos Innovative Finance ISA (IFISA). For an investment to qualify for the 2021/22 ISA allowance, the payment must have been received by 23:59 on 5 April 2022. As with all ISAs, there are eligibility criteria and you receive interest tax-free. ISA eligibility does not guarantee returns or protect consumers from losing their money. 

To invest in Temple Cycle bonds through a Triodos IFISA, select the ‘Invest through IFISA’ option. This selection will add to your current year IFISA or will open a new IFISA if you haven’t previously opened one.

Transferring an existing ISA

If you want to invest by transferring an existing ISA to a Triodos IFISA you must first request the transfer. You can do this under ‘Account’ once you’ve become a registered user of the platform. Your ISA transfer must be completed first, before you make an application for bonds.

Key terms

Issuer

Temple Cycles Limited 

Target amount

£625,000

Term

7 years, repayable on 30 June 2029

Minimum investment

£50 

Minimum raise

£400,000. If less than £400,000 is raised, monies will be returned to investors with no accrued interest. 

Interest

6% gross per year. Payable in arrears on 30 June each year (paid net of UK basic rate tax unless held in an IFISA). Payment of interest and repayment of capital are not guaranteed. 

Early repayment

Temple Cycles has the right to repay the bonds without penalty from 30 June 2025.

Unsecured

The bonds are unsecured, which means that bondholders will rank equally with Temple Cycles' other unsecured creditors and behind secured and preferential creditors on insolvency.

Covenants

A gearing covenant applies which places a limit on the company’s total permitted borrowings. Whilst the bonds remain outstanding, repayment of any directors' loans or payment of dividends to any shareholder are only permitted subject to the retention of a minimum cash balance of £50,000 after any such payment. An annual dividend cap also applies. A breach of any covenant constitutes an event of default.

Transferability

Bonds are transferable but are not listed on any investment exchange which means that bondholders will have to find a willing buyer and agree a purchase price with them, which in practice may not be easy. Investors should be prepared to hold the bonds for their full seven-year term.

Timetable

Closes on 3 May 2022, unless fully subscribed earlier or the offer is extended. Bonds are allotted 14 days after close and investors start to accrue interest from that date.  

Capital at risk - warning

Past performance is not an indication of future performance. Capital is at risk and returns are not guaranteed. Investors should read the offer document in full, including the risks section, before deciding whether to invest. 

Please note that payment of interest and capital is not guaranteed and is dependent on the continued successful operation of Temple Cycles