A company vital in keeping the UK’s lights on has secured one of the earliest Coronavirus Large Business Interruption Loan Scheme (CLBILS) packages. CLBILS is one of the government measures introduced to support businesses impacted by the Covid-19 pandemic.
Rainham Industrial Services, which specialises in the installation, maintenance and decommissioning of large industrial sites including power plants, saw project work grind to a halt after the onset of lockdown restrictions in March – which is usually the start of its peak season. The business expects to see increased demand for its services post lockdown.
Rainham works with clients within the nuclear, energy from waste and power generation sectors.
Facing cashflow issues as a result of reduced income, the business turned to longstanding banking partner, Lloyds Bank, for financial support. The money will be invested to increase operational capacity once infrastructure projects begin to restart. It means the business can complete six months’ worth of projects in less than four months, after projects scheduled for April and May have had to be pushed back due to the lockdown. The majority are projects which regulation states must happen this season.
Chris Banfield, management accountant at Rainham Industrial Services, said: “A lot of our big projects are carried out in the spring and summertime when our clients, particularly those in power generation, can take major plant offline for maintenance. This work is often essential for regulatory compliance, meaning almost all projects we’re booked for must be completed this season.
“Having worked alongside Lloyds Bank for eight years, they quickly understood the issue we faced in ramping up operations after a period of reduced income. With the new finance in place, we’re in a strong position to work alongside our suppliers and subcontractors to support customers with their critical maintenance requirements during this squeezed season.”
Mathew Durrant, relationship manager at Lloyds Bank, said: “Behind the scenes, Rainham is playing a critical role in keeping the nation running by helping to maintain key infrastructure. It’s demonstrated a remarkable commitment to its customers during the crisis, with its doors open to support essential work. It’s a great example of one of the many businesses we’re helping to get the financial buffer they need for the months ahead.”
Lloyds Banking Group has so far approved 21 CLBILS applications, to the value of over £157m.