Investing in Oak
The Oak is open to all private and institutional crypto and fiat investors who are looking for a new way to diversify their investments from January 2019.
Oak Group One PLC shares will be in tokenised format to make global trading as easy as possible and to guarantee maximum security for the investors.
Interest in whisky as an investment has been growing steadily for many years and the positive trend seems to be continuing. Whisky offers a great diversification element for getting away from stocks and other traditional assets.
Our aim is to provide an average annual return of over 20% during the lifespan of the company.
Oak’s lifespan is from five to seven years depending on the market situation. During this period investors get an annual dividend. Dividends can even be paid quarterly, based on the market performance and liquidation of the short-term inventory.
Oak Group One Cash Flow model
Our cash flow model is based on the following assumptions and investments rules of the Oak:
- One million pounds will be raised by the end of Q1 2019
The whisky market will continue performing as it has in the past 12 months
- 40% of the profits will be re-invested
- 60% of the profits will be paid out as dividends
Operational costs will be maximum 20% of its profits. The company has been structured so that expenses are linked only into profits not into the value of the assets
UK corporate tax rate will be 16% in 2021 and onwards.
|RW 1000 APEX growth (%)||29.82||29.82||29.82||29,82||29.82||29.82||29.82||29.82|
|Value of the inventory beginning of the year (k£)||900||970.4||1 047.3||1 131.3||1 221.9||1 319.8||1 425.6||1 539.9||1 663.3|
|Value of inventory growth (k£)||268.4||289.4||312.3||337.3||364.4||393.6||425.1||459.2|
|Value of the inventory end of the year before adjustments (k£)||1 168.4||1 259.8||1 359.6||1 468.5||1 586.3||1 713.4||1 850.8||1 999.1|
|Operational costs Max (k£)||53.7||57.9||62.5||67.5||72.9||78.8||85.0||91.8|
|UK corporate tax (k£)||38.6||39.4||40.0||43.2||46.6||50.4||54.4||58.8|
|Net income (k£)||176.1||192.1||209.9||226.7||244.9||264.5||285.7||308.6|
|Dividend (k£)||105.6||115.3||125.9||136.0||146.9||158.7||171.4||185.1||1 663.3|
|Dividend per share (£)||0,007||0,008||0,009||0,009||0,010||0,011||0,012||0,013||0,116|
At the end of the company life, the inventory will be liquidated and the proceeds paid to investors.
Based on current market performance, the annual dividend yield varies between 7.34% and 11.90%. As a reference FTSE all-share dividend yield for 6/30/2018 was 3.64%.
The last dividend is paid when the inventory is liquidated. Based on our cash flow calculation estimated yield will be 106.94%.