House of Hackney
House of Hackney, a pioneering B Corp, was founded in 2011 with a vision to bring the beauty of nature into our homes, offering an interiors range supporting British craftsmanship and design. As a profitable, £10m turnover business, which has grown income year-on-year in the last 5 years*, House of Hackney is proving that businesses can thrive, whilst still putting a purpose-driven mission over fast growth at any cost.
With an ambition to lead change in the SME community, House of Hackney seeks to redefine business success - one which puts people, planet and profit on equal footing. They are actively working on a nature-centric blueprint for conducting business that values all planetary stakeholders. To achieve this, they are calculating the ‘True Cost’ of their products, revealing hidden ecological and societal impacts, and setting ambitious targets to transform their materials and processes into regenerative ones.
Since 2023 they have held an annual supplier summit to drive meaningful change, focusing on key areas like building a regenerative cotton supply chain, pioneering wood fibre-free materials, and developing low-impact paint chemistry.
One year ago, they made Mother Nature & Future Generations a legal director of the company; represented by an independent voice on their board, ensuring that every decision considers its impact on the planet and human well-being. This formalises Nature’s role as a stakeholder and holds them accountable for transitioning to a model that protects and restores more than it takes.
House of Hackney’s 2024 Impact Report can be found here .
*to the financial year-end 31 March 2024
The bond offer
In 2017, to support the growth of the company, the founders sold shares to Rockpool – a UK-based private equity business. House of Hackney have recently agreed to repurchase those shares held by Rockpool for £3 million. The bonds will enable the business to fund the first tranche of the share buyback, returning it to full founder ownership. This will allow the company to accelerate its regenerative mission.
IFISA eligible
House of Hackney bonds are eligible to be held in a Triodos Innovative Finance ISA (IFISA). 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 all of money they have invested.
To invest in House of Hackney 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
House of Hackney Canopy Limited
Term
5 years, repayment due on 31 March 2030
Interest
8.25% gross per year. Payable in arrears on 31 March each year (paid net of UK basic rate tax unless held in an IFISA) with the first payment on 31 March 2026. Payment of interest and repayment of capital are not
guaranteed.
Early repayment
House of Hackney has the right to repay the bonds without penalty from 31 March 2027.
Unsecured
The bonds are unsecured, which means that bondholders will rank equally with House of Hackney’s other unsecured creditors and behind secured and preferential creditors on an insolvency.
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 five-year term.
Covenant
A covenant applies which limits total permitted borrowings
during the bond term to £2,000,000 (including the bond but excluding deferred
consideration relating to the Rockpool share repurchase). Within this cap, any
other borrowing must have a final repayment date after 30 March 2030. Payment
of dividends and repayment of any loans from directors are only permitted
subject to the retention of a minimum cash balance of £200,000 after any such
payment. An annual dividend cap of 35% of prior year audited consolidated
annual post-tax profits also applies and is subject to sufficient retained
earnings and the minimum cash requirement. The group cannot make loans to
directors during the bond term. A breach of any covenant constitutes an event
of default.
Minimum raise
£1,550,000. If less than £1,550,000 is raised, monies will be returned to investors with no accrued interest.
Bondholder benefits
Bondholders will be entitled to a 25% discount on any fully priced purchases made via the House of Hackney website or via the showrooms until the 31 March 2026.
Timetable
Closes on 27 March 2025, 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.
