<p>&nbsp;</p>

<p><a name="_MailOriginal"><strong>From:</strong></a> Rachel Rossiter &lt;rachel@harcourtinns.co.uk&gt;<br />
<strong>Sent:</strong> 30 June 2020 10:15<br />
<strong>To:</strong> Stephen Nurse &lt;nurse_stephen@hotmail.com&gt;; James McCulloch &lt;james@harcourtinns.co.uk&gt;<br />
<strong>Cc:</strong> &#39;John Soden&#39; &lt;soden.j@gmail.com&gt;<br />
<strong>Subject:</strong> RE: Data request (follow-up from May 29 commitment)</p>

<p>&nbsp;</p>

<p>Hi Stephen</p>

<p>&nbsp;</p>

<p>Email received, thank you.&nbsp;&nbsp; Noted on your correction of the dates.</p>

<p>&nbsp;</p>

<p>Kind regards</p>

<p>Rachel</p>

<p>&nbsp;</p>

<p>Rachel Rossiter</p>

<p>Group Finance Director</p>

<p>Harcourt Inns</p>

<p>T: 07915 615 930</p>

<p>E: <a href="mailto:rachel@harcourtinns.co.uk">rachel@harcourtinns.co.uk</a>&nbsp;</p>

<p>&nbsp;</p>

<p><img src="data:image/png;base64,[encoded data, 33372 characters]" style="height:168px; width:624px" /></p>

<p>&nbsp;</p>

<p>&nbsp;</p>

<p>&nbsp;</p>

<p><strong>From:</strong> Stephen Nurse &lt;<a href="mailto:nurse_stephen@hotmail.com">nurse_stephen@hotmail.com</a>&gt;<br />
<strong>Sent:</strong> 30 June 2020 10:02<br />
<strong>To:</strong> Rachel Rossiter &lt;<a href="mailto:rachel@harcourtinns.co.uk">rachel@harcourtinns.co.uk</a>&gt;; James McCulloch &lt;<a href="mailto:james@harcourtinns.co.uk">james@harcourtinns.co.uk</a>&gt;<br />
<strong>Cc:</strong> &#39;John Soden&#39; &lt;<a href="mailto:soden.j@gmail.com">soden.j@gmail.com</a>&gt;<br />
<strong>Subject:</strong> RE: Data request (follow-up from May 29 commitment)</p>

<p>&nbsp;</p>

<p>&nbsp;</p>

<p>Rachel,</p>

<p>Thank you for email and the information about furlough and fees &ndash; that is very helpful. &nbsp;Much appreciated.</p>

<p>I would like to correct a misunderstanding about the request for management accounts -&nbsp; the original request on the 18thMay does mention all management accounts for previous years &ndash; the email chain, including James reply that he would provide by 29th May is attached below.</p>

<p>This request was also reiterated on the call with James on the 12th June, along with the request for all the loan documentation and James agreed to provide them immediately.&nbsp;&nbsp;&nbsp;</p>

<p>We would appreciate you making the request for investor information your priority. &nbsp;&nbsp;If we are reviewing the exit offer on Saturday, providing the data on Friday is insufficient time for us to analyse and syndicate to all the other investors. &nbsp;</p>

<p>&nbsp;</p>

<p>Kind rgds</p>

<p>Stephen</p>

<p>&nbsp;</p>

<p><strong>From:</strong> Rachel Rossiter &lt;<a href="mailto:rachel@harcourtinns.co.uk">rachel@harcourtinns.co.uk</a>&gt;<br />
<strong>Sent:</strong> 29 June 2020 19:07<br />
<strong>To:</strong> Stephen Nurse &lt;<a href="mailto:nurse_stephen@hotmail.com">nurse_stephen@hotmail.com</a>&gt;; James McCulloch &lt;<a href="mailto:james@harcourtinns.co.uk">james@harcourtinns.co.uk</a>&gt;<br />
<strong>Cc:</strong> John Soden &lt;<a href="mailto:john.soden@moorgateindustries.com">john.soden@moorgateindustries.com</a>&gt;<br />
<strong>Subject:</strong> RE: Data request (follow-up from May 29 commitment)</p>

<p>Hi Stephen</p>

<p>Hope you had a nice weekend.</p>

<p>Regarding the management accounts for 2019 year, as previously mentioned, this was not in the original document request, it only stated statutory accounts which has been supplied.&nbsp; So the below is a new request received 18th May.&nbsp; I will endeavour to have those across to you by the end of this week.</p>

<p>Regarding the loan information, you have the majority of that already provided last week but I will build on that report to added any additional information you&rsquo;ve requested and then send that across this week also.</p>

<ul>
	<li>Overview of the response to Covid
	<ul style="list-style-type:circle">
		<li>Which employees are furloughed, which are not. &nbsp;All PAYE staff have been furloughed. &nbsp;In addition to furlough, Henry is receiving a top up of &pound;1,800 per month covered by us for the work that has been ongoing during lockdown to reset for reopening.&nbsp; We&rsquo;re paying all staff this month and also for July, a 20% top up which is a company liability, for holiday pay entitlement,&nbsp;5 days this month and 5 days next month, to cover the holiday accrued whilst on furlough.&nbsp; Therefore utilising the government 80% as allowable under furlough rules, to ensure when we re-open, all holiday accrued has been paid out and we don&rsquo;t reopen with large holiday accruals for people to then take.</li>
		<li>Are management fees to Harcourt being paid? &nbsp;No, all monthly retainer amounts are being accrued for but not paid since December2019, except a small payment of &pound;10k as a contribution towards accruing fees .</li>
		<li>Are operational fees being paid?&nbsp; Do you mean head office operational fee?&nbsp; If so, then no.&nbsp; The only payments going out for any pub whilst closed is insurance, alarm systems, nominal cost to the payroll company of &pound;70-&pound;80 per month, broadband fixed fees, all our other contracted service providers have given us on a contract holiday for three months.&nbsp; As well, we have been making nominal amounts to food and beverage suppliers to cover pre-existing liabilities on the payables ledger, under payment plan agreements.</li>
	</ul>
	</li>
	<li>Copy of the operations contract
	<ul style="list-style-type:circle">
		<li>What is the contractual agreement with Henry Harris&nbsp; Henry is on a standard Harcourt Inns employment contract, via PAYE, of &pound;125k pa</li>
	</ul>
	</li>
</ul>

<p>Be back in touch at the end of the week with the remaining information.</p>

<p>Kind regards</p>

<p>Rachel</p>

<p>&nbsp;</p>

<p>Rachel Rossiter</p>

<p>Group Finance Director</p>

<p>Harcourt Inns</p>

<p>T: 07915 615 930</p>

<p>E: <a href="mailto:rachel@harcourtinns.co.uk">rachel@harcourtinns.co.uk</a>&nbsp;</p>

<p><strong>From:</strong> Stephen Nurse &lt;<a href="mailto:nurse_stephen@hotmail.com">nurse_stephen@hotmail.com</a>&gt;<br />
<strong>Sent:</strong> 29 June 2020 09:01<br />
<strong>To:</strong> James McCulloch &lt;<a href="mailto:james@harcourtinns.co.uk">james@harcourtinns.co.uk</a>&gt;<br />
<strong>Cc:</strong> Rachel Rossiter &lt;<a href="mailto:rachel@harcourtinns.co.uk">rachel@harcourtinns.co.uk</a>&gt;; John Soden &lt;<a href="mailto:john.soden@moorgateindustries.com">john.soden@moorgateindustries.com</a>&gt;<br />
<strong>Subject:</strong> Data request (follow-up from May 29 commitment)</p>

<p>&nbsp;</p>

<p>James,</p>

<p>Following on from John&rsquo;s email this morning, please can you complete the request for information &nbsp;promised a month ago. I believe &nbsp;the items highlighted in blue/yellow I think are still outstanding - but please accept my apologies if I have missed an email &ndash; there are literally hundreds on Harcourt-related emails at the moment.</p>

<p>&nbsp;</p>

<p>So we can move forward as fast as possible &ndash; knowing that we will be reviewing the exit offer details this Saturday -please don&rsquo;t wait until you have all the details to reply but send them as you go.&nbsp; Please prioritise the yellow ones first.</p>

<p>&nbsp;</p>

<p>For the loans please can you provide, as well as the documentation (in due course), the following specifics :</p>

<ul>
	<li>Relevant pub</li>
	<li>Lender</li>
	<li>Security terms/guarantees</li>
	<li>Notional and any repayment schedule</li>
	<li>Interest rate (and any schedule if it varies over time)</li>
	<li>Early repayment terms (fees etc)</li>
	<li>Any of other information required to model the payments over the &nbsp;life of the loan</li>
	<li>Any fees paid/accrued/accruing</li>
</ul>

<p>&nbsp;</p>

<p>Hopefully all this information is readily available and I look forward to working through the details with you and Rachel.</p>

<p>&nbsp;</p>

<p>Kind rgds,</p>

<p>Stephen (on behalf of investor group)</p>

<p>&nbsp;</p>

<p><strong>From:</strong> James McCulloch &lt;<a href="mailto:james@harcourtinns.co.uk">james@harcourtinns.co.uk</a>&gt;<br />
<strong>Sent:</strong> 19 May 2020 10:23<br />
<strong>To:</strong> Stephen Nurse &lt;<a href="mailto:nurse_stephen@hotmail.com">nurse_stephen@hotmail.com</a>&gt;<br />
<strong>Subject:</strong> RE: Accounts and break-out of PnL for each of the Harcourt pubs.</p>

<p>&nbsp;</p>

<p>Steve,</p>

<p>&nbsp;</p>

<p>No problems providing this info.</p>

<p>&nbsp;</p>

<p>This week is the end of our payroll cycle and so we need to work to a fast turnaround deadline to get the furlough submission to HMRC to ensure funds are in the accounts by the end of the month to meet payday on 29th May so this Fri is unrealistic.</p>

<p>&nbsp;</p>

<p><strong>I will provide all info requested plus 12 month PL and cash flow forecasts for each pub by Fri 29th May.</strong></p>

<p>&nbsp;</p>

<p>Regards,</p>

<p>James &nbsp;</p>

<p>&nbsp;</p>

<p><strong>From:</strong> Stephen Nurse &lt;<a href="mailto:nurse_stephen@hotmail.com">nurse_stephen@hotmail.com</a>&gt;<br />
<strong>Sent:</strong> 18 May 2020 17:33<br />
<strong>To:</strong> James McCulloch &lt;<a href="mailto:james@harcourtinns.co.uk">james@harcourtinns.co.uk</a>&gt;<br />
<strong>Subject:</strong> Accounts and break-out of PnL for each of the Harcourt pubs.</p>

<p>James,</p>

<p>Please can you share with me the following for all the pubs:-</p>

<ul>
	<li>Management accounts/full financials for 2019 and <strong>previous years</strong>

	<ul style="list-style-type:circle">
		<li>P&amp;L, balance sheet</li>
		<li>Break-out of any creditors including aged payables and any finance arrangements such as long/short term loans, over-drafts etc</li>
		<li>Break-out of any capital holidays or leniency on covenants</li>
	</ul>
	</li>
	<li>Overview of the response to Covid
	<ul style="list-style-type:circle">
		<li>Which employees are furloughed, which are not.</li>
		<li>Are management fees to Harcourt being paid?</li>
		<li>Are operational fees being paid?</li>
	</ul>
	</li>
	<li>Copy of the operations contract
	<ul style="list-style-type:circle">
		<li>What is the contractual agreement with Henry Harris</li>
	</ul>
	</li>
	<li>Any other material information that are pertinent to a valuation</li>
	<li>All material contracts</li>
</ul>

<p>Our intention is to disseminate the data to investors equally/simultaneously (in those pubs that they are invested in). I hope you will be able to assist us in locating those investors we haven&rsquo;t been able to contact.</p>

<p>There is an investor-zoom call this Friday. Please can I have this information in advance of that meeting (by Thursday CoB latest) so we can have had some time to analyse them before the call on Friday.</p>

<p>&nbsp;</p>

<p>Thanks</p>

<p>Steve</p>

<p>&nbsp;</p>

<p>&nbsp;</p>