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June 2, 2020

Holiday firm is planning for sunnier times

A holiday company says it is planning for the future and looking forward to welcoming its customers back, thanks to support from Lloyds Bank.

Alfa Leisureplex Group has secured a £17m credit facility, including a £5m Coronavirus Business Interruption Loan Scheme (CBILS) loan from Lloyds Bank.

The funding will be used to support the business in the wake of the Covid-19 crisis and follows on from a £1.9m overdraft extension that was put in place by Lloyds Bank at the end of March.

The Alfa Leisureplex Group takes over 115,000 people on holiday every year with a fleet of 48 state-of-the-art tourist coaches and has 22 seaside hotels across the UK, including in popular resorts such as Newquay and Llandudno.

Managing director Emma Russell said: “Lloyds Bank has given us the financial support we’ve needed during this difficult period. The bank put emergency overdraft funding in place within 48 hours during the early stages of the crisis. The facility provided immediate assistance, enabling us to refund our customers.

“Over the past few weeks we’ve worked with Lloyds Bank on a broader package of support. The new facility means that we haven’t had to make difficult decisions in relation to our staff and our customers. We’ve been able to use this period of closure to design and shape our future holiday experiences. We will be introducing a new range of weekend short coach breaks in 2021 incorporating ‘must see’ events across the UK. We’ll also be adding more pick up points as we recognise that more people may choose to holiday closer to home in the future.

“Whilst we are waiting to resume operations, we have been working on our plans to safeguard our customers and teams when we re-open, so that our guests can continue to enjoy our holidays and service, knowing that their safety is our priority.”

The £43m turnover business, which is based in Chorley, Lancashire, is 75% owned by its 710 employees, who each receive an equal share of the company’s profits.

Emma continues: “The word most used to describe the business in our recent employee survey was ‘family’ and our customers are also an integral part of our Alfa Leisureplex family. We are really looking forward to being able to open again later in the year and welcome our customers back on board.

“A lot of our customers are over 50 and we wanted to make sure that they could stay connected during these times, so we have established a community group on Facebook where people can share happy memories of their holidays and have conversations with like-minded people.

“When we closed in March we had no choice other than to put a large proportion of our team on furlough and we are looking forward to welcoming our teams back to work. Being employee owned has really shaped the culture of our business and many of our employee owners are missing being at work.

“We’ve banked with Lloyds Bank for over 10 years and they have been a big part of supporting our growth and making sure our business is in the best position to build on its success in the future. John, our relationship director has been a phenomenal support throughout this time and the bank has really been by our side.”
The company has been offering customers whose holidays have been cancelled the option of either postponing their trip to a later date, getting a credit note valid until the end of 2022 or a full refund.
John Csizmadia, relationship director at Lloyds Bank, said: “Alfa Leisureplex is a prime example of a business that was in good health and trading well before the COVID-19 crisis hit. It now just needs a bit of support to get through this period where it has had to put its business on hold.
“There are lots of businesses across the UK in a similar situation and we’re doing all we can to help them through this difficult time.”

June 1, 2020

Award-winning Isle of Skye hotel books future thanks to bank support

An award-winning luxury hotel on the Isle of Skye that has lost over a thousand bookings because of the Covid-19 pandemic has secured its future with the support of Bank of Scotland.

Kinloch Lodge, a family-run 19-bedroom hotel, relies heavily on revenue from international tourists so the ban on overseas travel hit it hard. Some 1,200 bookings from March to June were cancelled, forcing the hotel to temporarily close and furlough all 32 members of staff.

However, it has now secured a six-figure loan from Bank of Scotland via the UK government’s Coronavirus Business Interruption Loan Scheme (CBILS), allowing it to trade through the pandemic until travel restrictions are lifted, as well as pay suppliers.

The hotel relies heavily on international travellers, which account for 75% of bookings. Located at the bottom of Loch na Dal, guests often use the hotel as a base to explore local hillwalking trails and fishing spots.

Isabella Macdonald, director of Kinloch Lodge, said: “Most businesses in the Highlands experience quieter trading periods during the winter, so we tend to rely on our spring and summer months. Unfortunately, when the ban on non-essential travel hit in March we went from being fully booked to nothing, almost overnight.

“Thanks to the support from Bank of Scotland, we’ve been given the breathing space needed to allow us to pay our suppliers and overheads, and we now look forward to welcoming our team and guests back when the restrictions are eased.

“Despite our bookings normally being largely made up of international travelers, we’re hopeful for a rise in UK staycations and a busy end to the year for our business.”

Barrie Aird, relationship manager at Bank of Scotland, said: “Kinloch Lodge is a prominent Highland business that’s been operating for almost 50 years. Many companies like this in the tourist industry have been hugely impacted by the restrictions imposed during the pandemic and are learning to adapt and adjust to the climate.

“At Bank of Scotland, we’re committed to supporting businesses like this as they navigate these challenging times.”

May 22, 2020

Travel and tourism is the sector worst hit by coronavirus

Travel agencies and tour operators are the worst hit of all major industries by the coronavirus crisis, with turnover of the sector in the UK falling 56% from £2.6bn in March 2019 to just £1.2bn in March 2020.

UHY Hacker Young, the national accountancy group, says that the lockdown has already hit the prime Easter holiday season as well as two bank holidays in the Spring, sharply reducing sales for some of the highest-revenue points in the calendar.

Millions of customers who would normally be booking summer holidays at the moment have put their purchases on hold due to the coronavirus. At the same time, many customers who had previously booked holidays are now receiving refunds, further pushing down the income of travel agents and tour operators.

UHY Hacker Young says that some in the sector are still high street businesses, who are now struggling to pay rent as well as being forced to furlough staff. The firm says it is likely that many travels agents and tour operators will not survive the coronavirus even after the lockdown ends.

Although the government has provided businesses with temporary help to limit the impact of the coronavirus, such as the CBILS scheme, the ban on evictions and winding up petitions and business rate relief, UHY Hacker Young says that once these protections lapse many businesses will go under.

Peter Kubik, partner at UHY Hacker Young, says: “The UK’s travel agents and tour operators have been hit hardest by the double whammy of the lockdown and a collapse in discretionary consumer spending.”

“The lockdown is a particularly hard blow to high street travel agencies who have been struggling for years against the shift to the internet and the huge DIY sites like Booking.com and Expedia.”

“There will be a rush of people booking holidays once lockdown ends but that may come too late for some in the sector. Many are likely to be effectively insolvent already and only surviving because of the help the government has put in place.”

May 1, 2020

VAT on e-books – zero rated from today! But not all will benefit

The zero rating of e-books is welcome at time when more people are reading on line, but not all e-publications will benefit, say leading tax and advisory firm Blick Rothenberg.

Alan Pearce, VAT partner at the firm said: “This has been brought forward due to the outbreak of coronavirus pandemic and the current lockdown requiring people to stay at home.

He added: “The zero rating of e-books, was originally planned to take effect from 1 December 2020, has been brought forward to today so that there is a reduced cost to access online publications at a time when many people are confined to their homes and schools and libraries are closed”.

Antje Forbirch, VAT director at the firm said: “This alignment of the VAT treatment for physical and digital publications will be welcome news for publishers and consumers, provided the VAT saving is passed on to end consumer.”

She added: “However, suppliers will need to review their offering as not all e-publications will benefit from the zero rate. E-publications that are predominantly (i.e. more than half) devoted to advertising or contain audio and or video content, and audiobooks themselves, will remain subject to the 20% rate of VAT.”

Alan stressed: “Suppliers will need to quickly adjust their VAT accounting systems. Furthermore, where subscription services for e-books have been invoiced in advance and VAT has already been paid upfront, HMRC will allow suppliers to issue credit notes and refund the VAT to consumers for the proportion of the annual subscription that runs beyond 1 May 2020.”

April 29, 2020

Simply helps south coast student coach firm navigate current period of disruption

Simply, the SME lender, has helped Swanage Taxis Ltd, operating as Linkrider Coaches, restructure its finance agreements to ensure that it can weather the current COVID-19 storm and continue trading.

Linkrider Coaches is a family-run firm that provides student and private coach hire services to the whole of Dorset and the south coast. Established 35 years ago as Swanage Taxis Ltd, it has seven employees and is one of the longest running passenger hire firms in the region. Because the bulk of its work is focussed on the transport of students to and from their places of study, there has been no business for the firm since educational establishments closed before Easter.

Simply worked with Nick Hubbard at Linkrider Coaches to create a bespoke payment profile that mirrored the seasonal nature of the business, benefiting the company and giving it as much flexibility as possible.

Andy Beard, area sales manager at Simply, commented: “I’ve worked with the team at Linkrider Coaches for over ten years so obviously wanted to help in the current circumstances. Whilst things are more difficult at the moment, the longer-term view is bright for smaller operators such as Linkrider, particularly as there should be a trend for more UK-based day trips and work in general once we are able to move around a little more. I’m really glad to have played a small part in saving this business.”

Nick Hubbard at Linkrider Coaches commented: “It’s obviously a difficult time for many businesses. We contacted Andy as soon as knew what was likely to happen over the next few months and knew that he would go the extra mile for us. He was proactive in rewriting our agreements, thus helping clear our arrears and also doing everything such as asset inspections and document signing remotely. A number of our competitors are no longer trading and thankfully, due to Simply’s tailored solutions, our business has been spared the same fate.”

April 23, 2020

Investment for screen-industry body to support growth

Create Central, the industry-led body set up in late 2019 has secured £2m of investment to deliver a programme of activities to help turbo charge the West Midlands film, TV and games sector.

Create Central has been awarded £1m through the BFI’s National Cluster Growth Fund using National Lottery money to deliver a long term growth plan specifically to meet the needs of the West Midlands’ screen businesses. In addition, £500,000 investment has been confirmed by the West Midlands Combined Authority (WMCA) and £500,000 from Tin Smart Social, a regional social enterprise.

The investment package will support the West Midlands local industrial strategy including a two-year programme developed by Create Central members to support the continued growth of the region’s screen sector which will be ever more important to the UK screen sector’s post Covid-19 recovery. The programme is heavily focused on the ‘future of media’, with innovation, digital infrastructure, immersive storytelling and digital employability programmes taking place amongst more traditional elements such as attracting film and TV production to the region and promoting the West Midlands screen sector on a global stage.

Leading industry professionals are backing the work of Create Central which has members including Peaky Blinders writer Steven Knight and Nativity film franchise founder, Debbie Isitt.

Steven Knight said: “I joined Create Central to work with other business leaders from the screen sector to ensure that Birmingham and the wider region attracts new international production, supports homegrown talent and shouts about all the amazing things happening already in the West Midlands. This support from the BFI could not come at a better time for our industry.”

Debbie Isitt added: “In these extremely challenging times this is a very welcome and meaningful investment for our independent film, TV and games makers. Create Central has come up with an action plan based on our collective experience of working in the region with the aim of supporting film, TV and games production over the next two years and beyond.

“Many talented people work tirelessly and passionately in this region and the BFI has clearly signalled their belief in us. We need to use this opportunity to ensure that we are ready to bounce back with the amazing talent that our region has to offer and be part of the human storytelling and economic recovery that the whole world needs right now.

“There is much work to be done but this is a wonderful opportunity to build a regional screen industry that will be of national and global importance for years to come.”

Create Central works in close partnership with the WMCA, the three Local Enterprise Partnerships, West Midlands Growth Company, The Innovation Alliance for the West Midlands, West Midlands Combined Universities, WM5G and other public sector organisations.

Mayor of the West Midlands, Andy Street, said: “This important BFI investment will help Create Central to deliver a dynamic programme of activities, especially at this challenging time for the screen sector.

“Create Central was established to improve the region’s film, TV and games industries, and this new funding will see it play a supportive role, focusing on boosting the resilience of the West Midlands screen industries and helping them to return to the growth they were generating prior to the coronavirus crisis.”

Create Central is today launching its search for industry specialists to work with them over the coming months to develop and deliver its ambitious programme – these include a global head-hunter to secure production investment into the region, an innovation lead and specialists in skills and training as well as communications and content.

Ben Roberts, Chief Executive of the BFI said: “The West Midlands film, TV and games sector has an important role to play in contributing creatively and economically to the UK screen industry, as well to the West Midlands local industrial strategy.

“We are pleased to be supporting Create Central with BFI National Lottery funding and see areas of business such as developing digital skills alongside film, television and digital production as crucial to the growth of the UK screen sector, creating jobs and new trading opportunities in the longer term.”

Founded just six months ago Create Central brings together nearly 30 of the region’s most successful TV, film, games and wider creative content business leaders who offer their time and experience to develop innovative approaches to turbo-charge the region’s creative content sector.

Chair of Create Central, Ed Shedd, said: “We established Create Central to provide energetic, collaborative leadership for our amazing creative content sector in the West Midlands.

“We have built early momentum, developing a region wide Growth Plan, and have now secured our first round of funding to deliver an exciting programme of activity: developed by our industry, for our industry. We look forward to announcing the details, and working with local businesses, over the coming weeks, months and years ahead.”

Cllr Ian Brookfield, WMCA portfolio holder for economy and innovation and leader of Wolverhampton City Council, said: “The wide ranging and damaging impact of the virus is being felt across many parts of the West Midlands screen industry and at many levels. That is why I am heartened by this announcement of new funding received by Create Central.

“Our region is home to some outstanding creative and cultural talent, and this new support is a much-needed boost in this difficult time.”

April 17, 2020

The show must go on – West End set designers supported through COVID-19

A Cardiff-based business can continue designing and building sets for West End productions post-lockdown with the support of Lloyds Bank.

Bay Productions, which works with renowned opera and theatre producers including Cameron Mackintosh and the English National Opera, has secured a six-figure funding package via the Coronavirus Business Interruption Loan Scheme (CBILS).

The funding will support the firm’s cashflow while it is unable to operate as normal during the Covid-19 outbreak.

The firm’s 50-strong team has seen a number of its projects paused. This includes the set for the new Disney musical, Frozen, which is scheduled to open in London later this year and sets for Matthew Bourne’s ballet The Red Shoes and Derren Brown’s live tour, Showman.

With the business’ overheads now covered for a period of extended closure, Bay Productions’ directors are carrying out preparatory work to ensure it is able to accommodate new projects, including a contract with the BBC for Eastenders, when it returns to production.

Peter Jones, director at Bay Productions, said: “The current pandemic has brought the shutters down not only for our business but for our clients who have large amounts invested in bringing shows to the theatre both in the UK and overseas.

“We launched our business towards the end of the last recession, which was a somewhat uncertain time. We’re once again facing into the unknown. However, the team at Lloyds Bank has brought a calmness to proceedings. The bank has put us in a position where we can bridge any gaps that appear in our cashflow while projects await completion. The funding will also enable us to spring back into action when the time comes.”

Jonathan Cave, relationship manager at Lloyds Bank, said: “I’ve watched Bay Productions grow over the last nine years as the team of designers has taken on bigger and more elaborate projects over time. The big-budget sets they produce are enjoyed by theatre-goers everywhere. It’s a real privilege to be able to support them, providing the financial stability needed for them to pick up where they left off when it is appropriate.

“The funding will also benefit the business’ furloughed staff while the government’s Coronavirus Job Retention Scheme comes into force. We remain committed to being by the side of businesses, helping them find the right emergency funding as part of the £2bn of arrangement fee-free finance we’ve set aside to help firms affected by COVID-19.”

April 14, 2020

Family behind independent bed shop rests easier with bank’s coronavirus support

A family-run bed shop trading in Hampshire for more than 30 years has safeguarded jobs amid the coronavirus crisis with a five-figure emergency loan from longstanding banking partner Lloyds Bank.

Ian Cleary has been running Forty Winks Bed Co. in Farnborough for three decades, having started the business with his father when he was just 17. He now runs the independent shop alongside his wife, Emma, and sisters Anne and Eileen, selling a wide range of beds, mattresses and bedroom furniture from a base in Camp Road.

However, when the coronavirus pandemic hit and a UK lockdown was announced, the family-run retailer was forced to close, leaving the business facing major cashflow issues.

Turning to his banking partner of more than 19 years, Lloyds Bank offered Ian an arrangement fee-free £75,000 loan – turned around in just four days – to cover wages for his team of four and settle outstanding supplier invoices.

He said: “Forty Winks is part of a very close community and to lose that connection would be devastating on both a personal and business level. Not only will this new funding mean that I can continue to pay the team’s wages while we ride out this storm but it’s helped to secure my business’ long-term future, which is hugely reassuring.

“The help that I’ve been given by Lloyds Bank has been absolutely first-class. It’s clear they’re being proactive in their support of businesses like mine at this very difficult time.”

Tim Gall, relationship manager at Lloyds Bank, said: “I know the Forty Winks business well and we were able to turn around the money it needed with speed after Ian’s initial enquiry. We’re working round the clock to help previously successful firms deal with extremely difficult conditions during the pandemic. We will be by their side as they emerge on the other side – ready to resume their growth journey.”

April 14, 2020

Holidaymakers affected by COVID-19 cancellations may get redress

Since the outbreak of the COVID-19 coronavirus pandemic, many hotel and travel businesses have refused to refund holidaymakers, with some left out of pocket for large sums.

This week a UK family who booked a £17,000 chalet in France were told that they could not re-book, or receive a refund even though they could not attend the venue due to the pandemic lockdowns in each country.

The UK European Consumer Centre (UK ECC) has seen a surge in queries from concerned holidaymakers looking for refunds for their cancelled holidays.

Andy Allen, service director at UK ECC, said: “This unprecedented pandemic has led to an enormous increase in consumers attempting to cancel or re-book their holidays. Sadly, many hotels are refusing either option and leaving some holidaymakers out of pocket with substantial sums.

“If the holiday venue cancels then it’s an entirely different story altogether, but in many cases, venues are refusing to cancel, or re-book. I advise consumers in this situation to contact UK ECC, as there may be options to try and get back some if not all of their fees, or to gain reward vouchers as a form of repayment.”

The UK ECC offers free advice and assistance to consumers who have bought goods or services in EU countries and Norway and Iceland. Consumers may contact UK ECC through the email address, eccnet-uk@ec.europa.eu

April 14, 2020

New scheme helps customers come to the rescue

It’s predicted that as many as a million local businesses may not survive a four-week-long coronavirus lockdown. As the isolation period stretches onwards, many formerly profitable restaurants, shops and other local businesses fear they may never re-open their doors.

But a new local business voucher scheme could come to the rescue of many popular local stores and cafes. Saving Local enables loyal customers who are keen to support their favourite local businesses to buy vouchers for products and meals now, for later use when the lockdown period finally ends.

The scheme is the brainchild of the well-known small business entrepreneur Charles Astwood, founder of leading Noughties dining website London-Eating, which pioneered user reviews by ordinary customers.

Charles has returned to the fray to help save local restaurants and stores by launching the new voucher-based scheme. Saving Local vouchers enable customers to support the local businesses they love by buying a voucher now, to use when the lockdown ends.

Says Charles: ‘The banks’ Covid-19 response seems to be slow in coming to the rescue of many much-loved businesses, while overheads continue to mount and expensive stock stands unwanted. But while the government and lenders may be entangled in bureaucracy, it’s businesses’ own customers who can come to the rescue. For many customers, the Saving Local voucher scheme is both a chance to buy themselves a treat to look forward to when the lockdown ends and, at the same time, it’s a purchase that could help ensure their favourite local shop, pub or café remains in business for the long term.

‘I’ve been really worried that several of my own favourite local business will never reopen and this independent, entirely not-for profit site seemed the best solution. The only deduction is the credit card fee; 100% of the voucher price goes to the venue.’

‘The scheme is open now for businesses to join for free. They can register online at https://www.savinglocal.com/register-business/. Customers keen to ensure their favourite local firms continue to serve them when the crisis has passed can simply send details to suggestions@savinglocal.com and we will contact them to sign them onboard.’

For full details of the new scheme and how to get local businesses registered, see: https://www.savinglocal.com/

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