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July 3, 2020

Staffordshire based gastro pub group secures £2m CBILS package

Parogon Pub Group Limited, operator of seven gastropubs based in Staffordshire, has secured £2m of funding from Santander UK as part of the Coronavirus Business Interruption Loan Scheme (CBILS). The funding will enable the business to meet immediate cashflow needs and ready the sites for reopening this weekend.

Based in Staffordshire, Parogon Pub Group is a privately owned, independent company started in 2007 and led by five local directors with a wealth of industry and business knowledge along with a true passion for hospitality. Each of the locations are carefully selected sites that offer a relaxed dining experience.

The hospitality sector was one of the first to see enforced closures back in March due to the outbreak of Coronavirus, which saw an immediate halt on cash inflow.

A total of £2m CBILS was provided to support the business as it furloughed all its staff but needed to continue to pay suppliers and meet contractual obligations. This support provided includes a CBILS loan, capital repayment holiday on an existing loan and a small overdraft.

Richard Colclough, managing director, Parogon Pub Group said: “As a Santander customer for around ten years, the bank has helped facilitate our growth from a single site to seven trading entities, owning the freehold of the majority of our venues. We still require the personal interaction with trusted and supportive bankers but also the ability to finance ambitious refurbishment works and expansion plans. Access to capital is critical for our projects and with this we have been able to acquire and subsequently transform well known but struggling restaurants into vibrant and hugely successful venues.

“More recently the Covid-19 crisis that has brought the country to an economic standstill and along with that an immediate liquidity issue for Parogon which was the biggest challenge our company has ever faced. With the help of our Santander relationship team we have managed to meet our payments on time and also set the business on the right footing to tackle the next challenging period of trade.”

Nick Ashman, relationship director, Santander UK, said: “Our pubs are a key part of British culture – found in amongst the hustle and bustle of the high street as well as the remotest parts of the countryside. Parogon Pub Group has grown considerably in the last decade, and we are delighted to support the business during this difficult time.”

Santander UK is hosting a series of free ‘Survive and Revive’ webinars for SMEs on how to bolster their business proposition. Covering a range of topics – from innovating effectively to aligning purpose and culture – our experts delve into some of the key ways in which businesses have adjusted, and thrived, since the outbreak of Coronavirus. You can find these webinars and a list of other helpful resources on our website: www.santanderbreakthrough.co.uk/coronavirus.

July 2, 2020

Aldermore provides £5m refinance facility to Quintain subsidiary

Aldermore, the specialist lender, has provided a £5m, 10 year, interest only Commercial Residential Investment refinance facility to Quintain Alto Residential Limited – a subsidiary of Quintain, which owns 13 apartments in Wembley Park’s Alto building, a development completed in 2017. The apartments are privately let and managed by Wembley Park Residential, Quintain’s private sales and lettings management team.

Warren Harrocks of Heron Financial advised Quintain and worked alongside James Maunder Taylor, head of finance advisory at Crestbridge Property Finance who recommended Aldermore for the financing as a lender who would consider a lower debt quantum and provide a high level of flexibility and service. This deal represents one of Aldermore’s major commercial residential investment transactions.

James Maunder Taylor, director at Crestbridge Property Finance said: “I have worked with Aldermore for many years, as the team can always be relied upon to take a commercial approach and deliver quickly; they were the perfect fit to meet Quintain’s requirements for this deal.”

Caroline Baker, lending manager at Aldermore said: “This financing demonstrates our ability to work with large developers to provide them with the bespoke facilities they need.

“We are delighted to be working with Quintain and to have been involved in such a high profile scheme. We worked hard to provide competitive terms which suited Quintain’s requirements and were able to turn the deal around swiftly. This deal underpins why Aldermore exists to back clients like Quintain and their ambitions.”

July 2, 2020

Bank support safeguards jobs at Stafford-based mobility equipment supplier

A leading provider of specialist mobility equipment for elderly and physically disabled people, has been able to secure all the jobs of its 36 staff during the coronavirus shutdown, after securing a Coronavirus Business Interruption Loan Scheme (CBILS) from Lloyds Bank.

Stafford-based Easy Living Mobility is one of the UK’s largest retailers of innovative mobility products including daily living aids, mobility scooters, manual and electric wheelchairs, rise recliners and stairlifts. It has a regional network of 12 stores across the Midlands and Staffordshire and serves more than 35,000 customers each year.

Like many ‘non-essential’ retail businesses, Easy Living Mobility faced unprecedented circumstances from the coronavirus outbreak as it was forced to close its doors to customers. The impact of lockdown on the firm’s cash flow has been significant, and it has had to furlough around two-thirds of its staff.

Lloyds Bank helped the firm to navigate the government support available and arranged a £307,000 funding package using the CBILS. This has enabled the firm to maintain some of its administration operations during the pandemic to respond to customer queries, giving it sufficient funds to pay its suppliers, whilst also being able to meet its own operational overheads and staff costs.

The business has recently re-opened its stores in-line with the government’s gradual relaxation of lockdown measures, but as many of Easy Living Mobility’s customers are aged over 70 years and therefore classified as vulnerable, the business’ recovery from the crisis is likely to be gradual. As such, the loan from Lloyds Bank will also allow Easy Living Mobility to more effectively trade back out of the pandemic over the longer-term.

Established in 2001, Easy Living Mobility also specialises in disabled bathroom conversions and installations and provides a mobility scooter repair service to its customers. The business’ stores are located in Newcastle-under-Lyme, Leek, Cannock, Lichfield, Dudley, Kidderminster, Hanley, Walsall, Northfield, Wylde Green, Telford and Wolverhampton.

The CBILS funding arranged by Lloyds Bank is also supporting Easy Living Mobility’s sister company Motus Medical, a leading supplier of specialist lightweight wheelchairs and powered wheelchairs.

Daniel Griffiths, director at Easy Living Mobility said: “Our specialist mobility equipment improves the quality of our customers’ lives. Unfortunately, they haven’t been able to access our stores or any of our installation or maintenance services during lockdown, and this has had a big impact on our customer’s lives as well as our business.

“We’ve seen a substantial decrease in turnover since the crisis unfolded, so the support we’ve had from Lloyds Bank has been invaluable. The team was really helpful and quickly provided a funding solution to give us the cashflow needed to meet our overheads and other costs during lockdown. This has been a real lifeline for our business.”

Adam Hartshorne, relationship manager at Lloyds Bank said: “The service and support that Easy Living Mobility provides to its customers is second to none. It helps people who rely on disability and mobility aids to live more independently, which is critical to their wellbeing. But as the business predominantly services a market that’s been impacted by the lockdown and social distancing rules, it needed extra support during these challenging times.

“We’re working flat out to help firms like Easy Living Mobility to navigate the disruption caused by Covid-19. This includes lending through the Bounce Back Loan Scheme and Coronavirus Business Interruption Scheme, as well as capital repayment holidays on loans for businesses that have been affected.”

July 2, 2020

Paragon supports Southampton-based printer with £250,000

Specialist SME lender Paragon Bank has continued its support for UK companies impacted by coronavirus, providing a £250,000 Coronavirus Business Interruption Loan (CBILS) to Southampton-based printing firm Indigo Press.

The CBILS loan has enabled the business to trade through Covid-19 as it had to continue to pay trade suppliers, even though turnover was significantly impacted. The company is now seeing sales rise again as the economic activity picks up.

Prior to this most recent support, Paragon also helped Indigo to free up cash flow by refinancing assets, allowing the business to consolidate and re-structure debt.

So far Paragon has lent £6m to UK SMEs through CBILS, with a number of deals in the pipeline due to complete.

Tony Swift, joint managing director at Indigo Press, said: “Paragon has been incredibly supportive. The team were very fast at turning around both of our agreements and extremely professional to deal with. Having experienced many issues with the big high street banks, it was an absolute breath of fresh air.

“We are now in a completely different situation and can now concentrate on what we actually do for a living, so that we are able to guide the business out the other side.”

Amanda Wytenburg, business development manager at Paragon, said: “We are extremely glad that we can support our customers through challenges presented by the pandemic. Our strong relationship with Indigo has meant that we have been able to provide ongoing support, tailored to their needs, both prior to the coronavirus pandemic and during.”

Established in 1989 and now with a turnover of approximately £4m, Indigo Press specialises in B2 Commercial Lithographic printing for a range of clients across many sectors. The business prides itself on being a high quality, competitively priced supplier of fast turnaround litho printed materials.

July 2, 2020

Aspen completes £1.2m bridge for BVI company

Aspen has completed a £1.2m residential bridging loan for a British Virgin Islands (BVI) company which commenced a debt restructuring programme just prior to the coronavirus outbreak.

The loan, which was completed at a rate of 0.89%pm flat rate with no exit fees over 12 months, was secured on a penthouse in the prestigious Pan Peninsula development in the City of London using the lender’s desktop valuations system.

The client, an experienced foreign businessman, required a quick turnaround to ensure the cashflow of his businesses was maintained during the uncertain period.

Continuing the practice of one underwriter per case, credit manager Harry Baker took the application from start-to-finish.

The lender met all Time-Based Service Excellence Targets with a fully-costed quote issued in the first 15 minutes and a submitted post-search DIP in one hour.

Legals and valuations were instructed within 30 minutes with enquiries and undertaking received same day.

Meetings with the client were undertaken by Facetime and Aspen’s legal partners were able to progress matters quickly, seamlessly working with a third-party legal team to provide the required legal opinion on the BVI Company.

Jack Coombs, director at Aspen Bridging said: “This case shows we are still able to deliver on our Time-Based Service Excellence Targets remotely, regardless of market challenges or case complexity.

“Our experienced team knew what to look for from day one to ensure it progressed in-line with the client’s expectations and to ensure the best turnaround time without any last-minute problems.

“Our business has been built to ensure the highest levels of service whether it’s a simple light refurb, complex legal structures or foreign national applications, and that is why we have seen a record number of brokers registering for our instant quoting ‘Broker View’ platform since the pandemic started.”

Aspen’s rate card has a maximum LTV to 75%, which can be realised through both physical and desktop valuations, and a top loan amount of £3m net.

The lender’s flat and stepped rate products include residential and light refurbishment, residential and medium refurbishment, HMOs, prime semi-commercial and prime commercial property.

The equity-funded lender further streamlined their processes during Covid-19, with full remote capacity and same day pay-out facilities.

July 1, 2020

Christie Finance support the purchase of two Scottish pharmacies by their existing managers

Specialist commercial finance broker, Christie Finance, has supported on the sale of two well-established Scottish Pharmacies, Eildon Pharmacy in Newtown St Boswells and Airth Pharmacy in Stirlingshire, to their existing Pharmacist Managers. Both businesses were sold by the same owner looking to pursue retirement.

Eildon Pharmacy is a community pharmacy servicing Newtown St Boswells, Roxburghshire, and its surrounding areas. Established over 20 years ago, it now dispenses an average of 5,000 items per month. The pharmacy has been purchased by Mr John McDougall, who has held the position of pharmacist manager at the pharmacy since 2013. John qualified in 1999 and has nearly 20 years’ experience as a community pharmacist in a variety of settings, including Lloyds Pharmacy and other independent chains.

Mr McDougall comments, “Sourcing finance as a first-time pharmacy buyer was not easy. At first, I was not sure about using a third party to secure finance due to the costs involved. However, after several months and having no success on my own, I let Craig at Christie Finance take over. Very quickly he was able to obtain more than one offer of finance with highly competitive terms. I am now extremely pleased to have completed on the purchase of my first pharmacy. I believe this would have happened a lot earlier if I had worked with Christie Finance from the outset. For any potential first-time buyer out there, I would not hesitate to recommend Craig’s services.”

Airth Pharmacy is also a community pharmacy located in the village of Airth, Stirlingshire. It services the local community with an average monthly dispensing volume of 2,673 items. The business has been purchased by Mr John Porter, who has been a pharmacist manager at the pharmacy since 2008. Mr Porter qualified in 1988 and has over 30 years’ experience as a Community Pharmacist, which includes working as an Area Manager at Lloyds Pharmacy, responsible for the running of ten pharmacies.

Mr Porter comments, “Craig atChristie Finance was involved from day one of my pharmacy purchase deal, easily contactable and fully understanding of my needs and goals from the beginning. We were in contact frequently and his business advice and sector experience were invaluable. Craig kept in touch even when his main role was completed and actively offered advice and help at every stage of my deal and beyond.”

Craig Dickson, director at Christie Finance, comments, “It was a pleasure working with my clients in realising their dreams and becoming the new owners of their respective pharmacies. This was a fantastic opportunity for me to be involved and assist in supporting not one, but two clients purchasing from the same vendor. I wish them both the very best in embarking on this new journey of business ownership and would be delighted to assist should they ever need my help again in the future.”

July 1, 2020

Pubs, restaurants and hotels prepare for 4 July reopening with Lloyds Bank support

A group of popular Derbyshire restaurant hotels has secured a six-figure Coronavirus Business Interruption Loan Scheme (CBILS) loan from Lloyds Bank to help secure its future as it keeps its doors shut during the Covid-19 pandemic.

The Boar’s Head in Draycott-in-the-Clay, The Lion Hotel in Belper and The Littleover Lodge Hotel in Littleover are owned and run by John Crooks, his wife Gail and their five children.

John bought The Boar’s Head back in 1984, a historic building originally part of the Vernon estate, which he transformed into a 23-bedroom hotel with an a la carte restaurant to seat 80.

The family business now employs 140 people across its three sites, which also attract thousands of people every year through its wedding and conferencing facilities.

The trio of restaurant hotels would usually be fully booked through the spring. But due to the Covid-19 pandemic, the business has had to temporarily close its doors to customers and furlough its staff.

The family sought the help of Lloyds Bank, its banking partner since 2011, to secure a CBILS loan to support the business’s employees and to help support its cashflow during the lockdown period.

John Crooks, director of the family business, JC Hotels, said: “This is the most challenging time our business has faced but we know we’re not alone. Pubs, restaurants and hotels across the region are feeling the same effects that we are and planning for the future is particularly difficult given the uncertainty surrounding when we’ll be able to open our doors again.

“We must remain optimistic and we’re doing everything we can to ensure that we’re ready to provide our customers with the quality and experience they have come to expect from us, when the time comes. Lloyds Bank has done a great job in helping us make sure we have the financial support we need to be in a position to welcome our customers back.”

Adam Hartshorne, relationship manager at Lloyds Bank, said: “John and his family have built a fantastic business over the last 36 years. The three restaurant hotels are each a part of the back-bone of their respective local scenes, providing wonderful food and accommodation for holidaymakers and businesses alike.

“The hospitality trade has been hit hard by the pandemic and we recognise that businesses like this are in urgent need of financial support. We’re committed to helping firms tackle the impact of Covid-19 and want to support businesses in preparing for what the future holds.”

July 1, 2020

Utilities firm flush with growth potential following Lloyds Bank investment

A Porth-headquartered utilities business is set for significant expansion as it looks to double sales in the next two years.

Arch Drainage, which provides advanced diagnostics and drain repair services for businesses and local authorities across Wales and the South West, aims to boost its turnover to £3.9m by 2022.

The expansion plans will see the firm create 12 new operations and back office roles in the next year, supported by a new £250k invoice finance facility provided by Lloyds Bank Commercial Banking.

The funding forms part of Lloyds Bank’s announcement that it expects to lend up to £1.1bn to support businesses in Wales in 2020.

Counting several major contractors among its client base, the business underwent a management buyout in 2019. It subsequently rebranded as Arch Drainage and has plans to add a new depot to its existing sites.

Commenting on its growth plans, Arch Drainage’s managing director Damian Tranter said: “Our business is entering a period of accelerated growth as we look to expand our offering in Wales and the M4 corridor.

“Having experienced sales director Dave Lewis join us recently, we’ve increased our new business pipeline and welcomed some key clients into our portfolio. With over £350k of new business invoiced since January, having the cashflow to invest in our growth is critical.

“The new facility from Lloyds Bank will give us the financial headroom to push on with those plans as we focus on the strengths of our core business and potentially add new satellite offices in Bristol and Swindon. In that respect, the team’s guidance and advice has been invaluable.”

Helena Warne, associate director at Lloyds Bank Commercial Banking, said: “Having been by their side through recent growth, the ambition of the new management team at Arch is second to none. With that in mind, I’ve every confidence that they will continue not only to boost the business’ financial performance but also its contribution to employment in South Wales and beyond.

“Invoice finance is a great way of releasing both working and investment capital and is just one of the many ways in which we are helping Britain prosper.”

July 1, 2020

Over one million UK businesses supported under Covid-19 lending schemes

The banking and finance industry has supported more than one million businesses through the three government-backed lending schemes in just over three months, figures published by HM Treasury today have revealed.

Almost 1.02 million facilities worth £42.9bn have been approved through the Coronavirus Businesses Interruption Loans Scheme (CBILS), Bounce Back Loan Scheme (BBLS) and Coronavirus Large Business Interruption Loan Scheme (CLBILS).

The support demonstrates the significant steps taken by lenders to make sure viable businesses of all sizes have access to the support they need to get through these challenging times.

To put the one million milestone in context, in the past five years the ten largest banking groups have approved an average of 275,000 loans and overdrafts each year to UK SMEs, equivalent to 70,000 facilities every three months. The one million government-backed facilities approved over three months is around 14 times higher than this quarterly average, as lenders work hard to meet unprecedented demand for finance from SMEs.

Bounce Back Loans have had continued success, with £29.5bn having been approved so far, reaching 967,000 businesses. Just over 46,000 businesses have been provided finance this week worth £1.4bn.

In just over three months since it was introduced, the banking and finance industry has approved 52,000 facilities through the CBIL scheme, totaling £11.1bn.

The CLBIL scheme, designed for the UK’s larger businesses, has seen 359 firms receive £2.3bn over the period.

These figures come after recent research for UK Finance by BVA BDRC revealed that almost 90% of SMEs have had their applications for a Bounce Bank Loan (BBL) or Coronavirus Business Interruption Loan (CBILS) facility approved where a final decision has been made.

Today’s figures mean that one in six of the UK’s 5.9 million private sector businesses have received support from lenders through one of the three government-backed coronavirus lending schemes. The banking and finance industry is also providing businesses with other forms of support including working capital extensions, overdraft extensions and capital repayment deferrals, as part of its plan to help firms of all sizes get through the crisis.

Stephen Pegge, managing director of Commercial Finance at UK Finance, said:

“These figures shine a light on the unprecedented levels of support from lenders to help get businesses through these challenging times.

“The fact that over one million businesses are receiving support through the coronavirus loan schemes is a credit to bank staff up and down the country who have worked tirelessly to get finance to those who need it.
“Almost £43bn has now been approved through these schemes, in addition to the industry’s broad package of support for businesses including overdraft extensions and capital repayment deferrals.

“Businesses should remember that any lending provided under government-backed schemes is a debt not a grant, and so should carefully consider their ability to repay before applying.”

 

June 30, 2020

Manufacturing businesses emerge from lockdown with support from Lloyds Bank

A Worcestershire-based specialist steel fabrication business remains open with the support of Lloyds Bank and hopes to realise its expansion plans post-Covid-19.

NHS supplier, All 4 One Engineering is continuing to process orders for the industrial roofing and cladding trades after working with the bank to secure a six-figure funding package via the government-backed Coronavirus Business Interruption Loan Scheme.As well as providing materials to NHS construction projects, the business is also manufacturing essential steel products for healthcare trusts across the UK. The funding will enable it to continue supporting the NHS while managing cashflow issues caused by the temporary closure of construction sites during the pandemic.

Prior to Covid-19, the £3m turnover firm had secured planning permission to double the size of its 22,000 sq ft Bromsgrove production facility and plans remain in place to expand the business when economic conditions improve.

Kim Williams, managing director of All 4 One Engineering, said: “We’ve been fortunate enough to remain open for business with a reduced team despite the impact of coronavirus on the construction industry. However, like all businesses, our suppliers and clients have been affected which has had implications for our cashflow.

“The rapid arrival of the funding has provided us with the short-term flexibility to weather the storm and continue to support projects for clients including the NHS.”

Ian Monk, relationship manager at Lloyds Bank, said: “We’re supporting businesses up and down the country as the current crisis continues to affect critical sectors, including manufacturing. We’ve worked with All 4 One Engineering for more than 15 years and it is clear that, prior to Covid-19, it was performing well. This funding will be critical in the short-term and hopefully leave them in a strong enough position to revisit their growth aims on the other side of the crisis.”

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