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March 30, 2020

Secure Trust Bank provides £3.5m facility to Lakes Distillery

The Lakes Distillery, a whisky maker with an artistic ethos, has received a £3.5 million asset-based lending facility from Secure Trust Bank Commercial Finance to help it triple the number of litres of alcohol it produces per annum.

Founded in 2011, the distillery is housed in a renovated 1850’s Victorian farmstead. Nestled on the shore of Bassenthwaite Lake in the heart of the Lake District National Park, it has become a popular visitor attraction, welcoming more than 32,000 visitors on its tours in the last 12 months, and over 60,000 diners in the onsite restaurant.

Having won a Gold award for The Lakes Single Malt at the 2020 World Whisky Awards, The Lakes has become renowned for its range of single malt and blended whiskies, but it has also won countless awards for its range of vodkas and gins. In January 2019, The Lakes Vodka was crowned the “World’s Best Vodka” at the World Vodka Awards.

As one of only 14 English whisky distilleries, The Lakes began distilling in 2014 and, as of the end of 2019, has produced over half a million litres of alcohol, which equates to 1.5 million bottles of whisky. As the spirit must remain in an oak cask for three years and one day before it is classified as whisky, the company made its first whisky sale in 2018, and has since sold more than 15,000 bottles.

In September 2019, The Lakes released its first widely available single malt whisky, The Whiskymaker’s Reserve No.1, which sold out in just five weeks through their website and stockists such as Booths, Harvey Nichols, and Master of Malt. Also sold out, The Whiskymaker’s Reserve No.2 followed in October, with the third single malt in the Whiskymaker series due to launch in April 2020.

The £3.5m provided by Secure Trust Bank Commercial Finance will allow The Lakes to increase the quantity of single malt whisky stock it can produce each year by threefold, from its current capacity of 130,000 litres. The facility is also able to grow over time, as the value of its current stock of whisky increases the older it becomes.

The deal was led by Paul Goodchild, director at Secure Trust Bank Commercial Finance, with support from John Gribbon, regional managing director for Yorkshire and the North East. Louise Duffy at Muckles advised The Lakes Distillery, whilst Ben Slack at Clarion Yorkshire and Christian Humphreys at Sanderson Weatherall advised Secure Trust Bank on the transaction.

David Robinson, chief financial officer at The Lakes Distillery, said: “In the past, it has been difficult for us to secure an asset-based facility due to the complexities of the whisky market.

“Secure Trust Bank took the time to understand our business model and was able to take a flexible and common sense approach to the lending criteria. They understood that the value of our whisky stock increases over time, meaning that the facility can grow as our business expands.”

John Gribbon at Secure Trust Bank Commercial Finance said: “The Lakes Distillery brand looks set to enjoy phenomenal growth over the next year, as it aims to increase production capacity, inventory age and holding. The quality of the company’s operations, management team and product range mean it has the potential to rival the very biggest and best alcohol brands, not only in the UK but across the world. We are excited to work with David and the team, and we’re pleased to be able to support them as The Lakes works towards becoming a household name.”

March 27, 2020

Hope springs for Somerset zoo during coronavirus closure

A Somerset zoo that has closed its doors during the coronavirus outbreak has secured a six-figure funding package to care for its animals during the lockdown, thanks to Lloyds Bank Commercial Banking.

Noah’s Ark Zoo Farm, in Wraxall near Bristol, closed its doors on 21 March but was facing substantial costs to keep more than 1,000 animals who live there healthy and happy.

The pressure was even greater because the zoo was approaching its busiest and most profitable time of the year.

But support from Lloyds Bank means it can now afford to keep a staff of 20 specialist keepers employed through the lockdown period to look after the animals, including giraffes, lions, tigers, rhinos and African elephants.

Managing director, Larry Bush said: “It’s been a very emotional week for everybody. We’ve had to ask non-essential staff to go home on furlough, retaining a skeleton team of around 20.

“Some of our catering suppliers donated fruit and veg that would otherwise have been delivered to local hotels and restaurants. And the public have shown their support through our Facebook page. However, running a zoo is a huge undertaking and we were really concerned about maintaining the safety and welfare of our animals.”

Larry contacted Lloyds Bank for support and within 24 hours secured a £300,000 package to keep the zoo going.

He said: “We’ve banked with Lloyds for the entire 66 years that we’ve been on this site. The team were very clear that the bank would support us through this crisis and it gave us a real boost that they understand the challenge we’re facing.

“This package gives us the breathing space we need right now, and we’re already talking about further financial backing through the government’s business interruption loan scheme.”

While the family-owned zoo, which is home to more than one hundred species of animals, remains closed, keepers will be posting regular updates from the animals on social media.

Last week it welcomed a baby female zebra, which the team decided to name Hope as a symbol of their positive outlook in the face of the coronavirus crisis.

The zoo was opened by Anthony and Christina Bush in 1999 and typically welcomes more than 200,000 visitors a year, with 55 full-time staff.

Neil Wright, agricultural relationship manager for Lloyds Bank Commercial Banking, said: “Noah’s Ark Zoo Farm is a thriving business and a much-loved destination for families from across the region.

“With our support, I’m sure that the zoo and all its staff will make it through this testing time and will be welcoming visitors once again as soon as it is safe.

“We’re working closely with customers across the region to offer support in managing their cash flow. This includes arrangement fee free overdrafts, capital repayment holidays on loans for businesses that have been severely affected, and the Coronavirus Business Loan Interruption Scheme to ensure the continued provision of finance to UK businesses.”

March 27, 2020

Support from Lloyds Bank strikes the right chord for music merchandiser Nylon

A specialist music merchandising company has secured jobs and is looking to the future with support from Lloyds Bank Commercial Banking.

Kent-based Nylon Merchandising Ltd. works with some of the biggest names in the music business to manufacture and sell merchandise at concerts and festivals. Its product range includes t-shirts, sweatshirts, posters and fridge magnets.

Like so many businesses operating in the events and entertainment sector, the company has seen almost all of its operations temporarily put on hold due to the Covid-19 outbreak.

Lloyds Bank has provided a package of financial support to help with the firm’s cashflow during this period. This has allowed Nylon to retain its five members of staff, ensuring it is ready to support rescheduled tour dates later this year.

Steve Hatton, director at Nylon Merchandising, said: “Every single live show that we had in our calendar has been either cancelled or postponed for the next three months at least.

“Lloyds Bank has been there for us since the very start of this. Our relationship director, Paul Kibby, reached out to me to offer support and very quickly worked to put a facility in place to help us with cashflow.

“The support from Lloyds Bank means we’re able to keep our staff on. It means that when things do go back to normal, and touring commences again, we’ll be ready to take advantage of the upturn in business we’re hoping to see.

“Without the support from the bank, a very difficult time would have been near on impossible.”

Alan Harber, SME South East area director at Lloyds Bank Commercial Banking, said: “Like many businesses, Nylon Merchandising was trading well a month ago with a great line-up of tours in the diary. The Covid-19 crisis has forced the business to pause much of its sales operation.

“We’re right by the side of businesses like Nylon Merchandising, supporting them through this difficult time.”

March 24, 2020

Octane Capital ‘committed’ to brokers and completes on four loans in 24 hours

‘Product-less’ lender, Octane Capital, today announced that it will continue to support its broker partners as normally as possible as the UK escalates its measures to contain Covid-19.

The lender confirmed that its entire workforce is fully operational from home and all systems have been tested and are functioning well.

In a highly fluid situation, Octane, like other lenders, will continue to review risk on an ongoing basis but says it has completed on four loans in the past 24 hours alone:

  • £230k development exit facility on two properties in the South East
  • £390k bridging loan to help a borrower purchase another property in London
  • £660k buy-to-let loan to a foreign national purchasing a flat in Battersea
  • £700k refurbishment loan comprising a £450k land loan and £250k toward works

Jonathan Samuels, CEO, Octane Capital, commented:

“These are extraordinary times but we wanted to make it clear to the broker community that we are fully committed and will continue to lend as close to normally as possible. The specialist lending sector is both agile and robust and will survive the challenge ahead just as it did the Global Financial Crisis.”

Mark Posniak, managing director, Octane Capital, added:

“All our staff have been working remotely since early last week and, in the weeks and months ahead, subject to the health of our team, there will no impact at the operational level on either existing or future applications. As the four loans completed in the past 24 hours hopefully show, we remain hungry to lend and will do our utmost to serve the broker community during these unprecedented times. If brokers have any questions, we’re encouraging them to speak to their normal point of contact.”

March 24, 2020

EdTech firm set for further growth with £100,000 NPIF loan

Chester-based EdTech firm Gluu, which aims to increase teaching capacity through technology, has received a £100,000 loan from NPIF – BFS & MSIF Microfinance, a product managed by GC Business Finance & MSIF and part of the Northern Powerhouse Investment Fund (NPIF).

Incorporated in 2016, Gluu’s purpose is to find the best EdTech practices and make them accessible to all. The model aims to distribute current best practices with others in the sector, creating a shared goal partnership and reducing teachers’ workloads. The business currently works with a number of international partners to scale its products globally, including Microsoft, HP and Britannica.

The platform identifies best in class solutions, which are tested by its partner school, Shireland Collegiate Academy (SCA) in the West Midlands. SCA is a Multi-Academy Trust that has gained a global reputation for the effective use of technology to improve standards and embed new approaches to learning. The solution is then licensed to potential partners, including schools and international brands, to scale with the respective network. The firm’s latest solution, Britannica LaunchPacks, is aimed at GCSE pupils studying history and geography. It was curated by teachers, for teachers and their students to build subject-area knowledge, think critically and make cross-curricular connections that help engage them in meaningful learning.

The £100,000 investment will allow Gluu to take on two new employees to join director Sean Gardner. The funding will also be used to fund content creation, while allowing the firm to partner with further schools and roll out its software more widely.

Sean Gardner, director of Gluu said: “Gluu’s purpose is to make a positive difference in schools to help children access new ways of learning. We noticed that across different sectors, best practices seemed to be shared but in education, this was not the case. By partnering with SCA and international EdTech brands, we are able to bring these ideas to life and, more importantly, make them accessible to all. I’m excited to be able to grow the business with this loan and welcome some new members of staff to join me on Gluu’s journey.”

Simon Truby, senior business loan manager at GC Business Finance said: “At GC Business Finance we are always looking for businesses that make a difference and we strive to help small firms reach their goals. Gluu has huge potential as a new EdTech category to push its product solutions far and wide, which is why it is such an exciting business to invest in. We look forward to working with Sean and his new team, helping children with new ways of learning which will in time lead to a more prosperous economy.”

Sue Barnard, senior manager at the British Business Bank, said: “The Northern Powerhouse Investment Fund seeks to boost growth in smaller businesses across the region with finance to support new jobs and expansion. Funding such as this highlights the important role of external finance as well as the positive impact NPIF is having on North West businesses. We would encourage other small businesses seeking to grow to see what funding support is available from NPIF.”

The Northern Powerhouse Investment Fund project is supported financially by the European Union using funding from the European Regional Development Fund (ERDF) as part of the European Structural and Investment Funds Growth Programme 2014-2020 and the European Investment Bank.

March 23, 2020

Future Generation embarks on phase 3 of Sheffield PBSA

Student accommodation specialist Future Generation has refinanced a £39m development loan that will partly fund construction of the third phase of a major Sheffield PBSA scheme.

It comes at the end of a remarkable five days of dealmaking for the company, which — despite turmoil in global markets due to coronavirus — saw it secure another £55m development loan to construct two other PBSA schemes in Loughborough and Nottingham.

The completion of these contracts in the face of unprecedented economic uncertainty has underlined the long-term strength of the student housing in the UK.

The work on the final phase of Steel City, Sheffield, is being funded by the refinancing of another Maslow Capital development loan that covered construction of both Steel City and the completed Future Generation PBSA scheme, Hythe Mills, in Colchester, Essex. The new lending from a fund advised by DRC Capital, steered to completion by Graham Fasham, a Principal at the firm, represents a long-term investment now that the development phase is almost entirely complete.

The third phase of Steel City will create 19 short-let serviced apartments — in addition to the scheme’s existing 324 bedrooms — to be used by parents and friends visiting student tenants. The concept is designed to make it much easier for students living away at university to maintain relationships with friends and family.

This is part of Future Generation’s unique approach to mental wellbeing, which sees all staff working at its PBSA schemes obtaining either a Level 1 or Level 2 Certificate in Mental Health Awareness, awarded by Training Qualifications UK (TQUK). The service apartments are being delivered by Southern Grove’s hospitality team led by Tim Barrett, who joined the company from Marriott.

The £35million scheme also boasts an interactive fitness studio plus Future Generation’s signature Sky Lounge — a rooftop social space where students can relax, interact and enjoy cityscape views. Construction of the third phase is expected to be completed by the spring of 2021 and a construction partner is yet to be chosen.

Steel City and Hythe Mills have both been fully let since September 2019.

Hythe Mills is a £25m, 229-bedroom student scheme containing an interactive fitness studio and riverside networking hub. The fitness suite is equipped with virtual training programs including Spin, Body Pump and Body Combat — all delivered in partnership with world-leading group fitness specialist Les Mills.

Andrew Southern, chairman of Southern Grove and Future Generation, said:

“The fact that these funding facilities are still coming together, even with Covid-19 wreaking havoc on industry and economies around the world, is testament to the long-term security of the student accommodation sector in the UK. We are going to weather this storm and come out of it even stronger, with positive consequences for the incomes of those firms and workers who help us to make these developments a reality.

“The completion of Steel City will also be an incredibly proud moment for me personally. Sheffield is my home town and I still have plenty of family and friends there.

“It is a pioneering example of everything we’re trying to achieve nationally, transforming people’s expectations of student accommodation in terms of design and quality.”

March 20, 2020

YourZooki in good health following £150,000 loan

YourZooki, which creates and manufactures premium liquid supplements using natural ingredients, has secured a £150,000 loan from Rosebud, a product managed by GC Business Finance.

YourZooki’s products deliver active ingredients using the same fats that surround human cells. The firm’s current range of supplements include CBD oils, Vitamin C sachets and Omega 3 fish oils which are all formulated and produced in a GMP certified facility and are third-party tested. All ingredients are sustainably sourced, organic and non-GMO. Its Vitamin C Zooki sachets are said to combat fatigue and have been recommended by GQ Magazine.

The firm has a turnover of £1.05m with three members of staff and exports all products from its Preston base. Its supplements are sold across 14 European countries including France, Sweden and Hungary, as well as directly through its website and across a number of independent retailers. It is stocked in Black Sheep Coffee, Harrods and Selfridges, with products also listed on John Bell and Croyden – the Queen’s pharmacy. YourZooki is also the first supplement company in the UK to sell CBD oil on the television shopping channel QVC.

The £150,000 loan will be used to recruit staff and move premises to a larger site in Blackpool. YourZooki plans increase its headcount significantly over the next 12 months, employing between 10 to 15 new staff. This will allow the firm to form a sales team, enable marketing support and employ warehouse staff. The business has future plans to launch in major retailers and also has a brand-new product in the pipeline in the form of a chocolate sauce CBD sachet.

GC Business Finance was appointed to deliver Lancashire County Council’s Rosebud Fund in July 2019. The £11.25m investment fund provides loans ranging from £10,000 to £300,000 to businesses across 12 local authority areas in the region and is aiming to create 150 jobs per year across Lancashire.

Marcus Mollinga, managing director at YourZooki said: “The loan from Rosebud comes at an exciting time for us, and will help us to really push the business to new heights. Creating a sales team and allowing increased marketing capabilities will boost our brand awareness and enable further sales nationally and internationally. We hope that as we continue to grow, we will have the capacity to take on major retailers in the near future and with the help from the team at Rosebud, we are positive about what’s to come for the business.”

Jonathan Nelson, senior loan manager at GC Business Finance said: “YourZooki really caught our eye, with its focus on nutrition offering huge growth potential due to an increased importance on wellbeing across the market. Having already launched its natural supplements across Europe, it now has the opportunity to launch into Britain’s biggest retail stores to build on the momentum of the current market trend. This is important for the Lancashire region, creating a number of new jobs with scope for more as YourZooki grows.”

Councillor Michael Green, Lancashire County Council said: “YourZooki is a great example of a growing Lancashire business with a focus on sustainability and nutrition. For Lancashire County Council it’s important we support businesses across Lancashire to expand, export and create new jobs to support the Lancashire community and economy. YourZooki’s plan to recruit 10-15 new staff members is one of the Core Purposes for Rosebud Finance and we’re proud to be able to support their journey.”

March 20, 2020

LendInvest closes £285m RMBS securitisation 9 months after first

LendInvest, the UK’s leading platform for property finance, has completed its second securitisation of buy-to-l (BTL) mortgages in an oversubscribed RMBS transaction, Mortimer BTL 2020-1.

Despite significant market turbulence from the global spread of the coronavirus, it took LendInvest six business days to price the transaction after opening investor discussions.

The securitisation, which comprised £285m of UK prime BTL mortgage loans, received an AAA(sf) rating (for 85% of the pool) from Fitch and S&P Global Ratings, the global credit rating agencies. The senior tranche was priced at 1.07% over SONIA; this is 23bps better than LendInvest’s securitisation last year.

Rod Lockhart, chief executive of LendInvest, commented: “When we launched the roadshow for this transaction, no-one could have predicted the full extent of the market turmoil that was about to unfold. It has been a truly unprecedented and unusual environment to agree and settle a transaction as substantial as this for LendInvest – let alone the whole UK mortgage market. The circumstances mean it’s all the more rewarding to have returned to the RMBS market as emphatically as we have done with this transaction.

Our much-improved pricing and the appetite for this transaction from both existing and new investors have proven our liquidity, our funding model and the resilience of our wider business strategy to withstand market uncertainty. This transaction ensures our levels of BTL lending needn’t dip over the coming months as the world works through this most unusual time.”

LendInvest remains the only UK fintech platform to have securitised its own assets. This transaction comes only nine months after LendInvest entered the RMBS market with its first securitisation of £259m  BTL loans, Mortimer BTL 2019-1.

Leveraging its end-to-end technology platform, LendInvest provides BTL borrowers and intermediaries with a superior customer experience. LendInvest remains one of few mortgage lenders to use Open Banking, a time-saving, tech-enabled service to which over two thirds of its BTL customers subscribe; and the company is typically able to make an BTL mortgage offer faster than its offline competition.

LendInvest has lent more than £3bn of property finance to UK borrowers since 2008.

Citi acted as sole arranger. Citi, National Australia Bank and JP Morgan acted as joint lead managers.

March 19, 2020

Christie & Co advises Cynergy Bank

Specialist business property adviser, Christie & Co has recently provided valuation services to Cynergy Bank on two new loans to Old Amersham Hotels (Holdings) Ltd, a company that runs three popular local hotels and venues in Buckinghamshire and its sister company Redesdale Holdings, which runs hotels in the Cotswolds. The newly negotiated finance will provide the two companies with more capital to realise their business plans.

Cynergy Bank provided £8.55 million in new loans for the two companies (£5.55m for Old Amersham Hotels and £3.00m for Redesdale Holdings). Both loans enabled the businesses to refinance existing bank debt and release part of the shareholder loans. The loans were provided with repayments modelled over a 25-year term.

Old Amersham Hotels has refinanced the debt on The Crown, Kings Arms and Kings Chapel – all of which are in Old Amersham. Redesdale Holdings has refinanced the debt on Redesdale Arms and Number Four at Stow, both of which are in the Cotswolds.

Sean Ludden, director – valuations at Christie & Co who led the project comments, “Christie & Co was delighted to be appointed by Steve Crosswell of Cynergy Bank to provide valuations of each of the respective businesses. Working with my colleague, Helena Gleeson, associate director, we were able to inspect the properties and turn our work around in a speedy fashion, enabling the bank to draw down the loans in accordance with the borrowers refinancing needs and preferred timescales.”

Helena Gleeson, associate director, valuations at Christie & Co adds, “It was a pleasure to work with these two companies whose respective management teams were impressive in their strategy and helpful at every stage of the valuation process. We wish them every success in the future.”

March 19, 2020

Christie & Co expands its’ dental team in the Midlands

 

In the last 12 months Christie & Co’s specialist team has valued or sold over 400 dental businesses across the UK with an aggregate value of over £500m.

Many of these sales were across the East and West Midlands, with a few notable highlights from smaller owner operated practices, through to high-value single assets and mid-market group activity.

To keep up with an ever-increasing number of transactions, we are delighted to announce that we are strengthening our dental team. Tom Morley, who has many years’ experience in the industry, joins us to support our Midlands based clients.

The Midlands and surrounding areas continue to be a hotspot of activity – a recent deal agreed was for a mixed income dental practice in Leicester that went unsold via a previous agent. However, after a ‘refresh’ we successfully arranged ten viewings within two weeks of going to market, which resulted in nine offers being received. After managing a competitive bidding process, an offer was accepted almost 10% above the initial guide price.

The current demand from buyers is a major catalyst for activity within the market. There are three main buyer profiles, including corporates, multiple operators and independent/first time buyers. Each purchaser type has its strengths and weaknesses, as well as different needs and demands, when looking to acquire a practice. Far too often we see sellers deal directly with a buyer, receiving unfavourable and unrealistic conditions, attached to a mediocre offer.

We understand that a seller may be concerned about staff and other peers finding out that their practice is being sold and therefore might just be tempted to just to pick up the phone directly to a couple of the local buyer groups. However, the likelihood is that the practice will be selling short of true market value! Working with an agent who acts on behalf of the seller, such as Christie & Co, eliminates any conflict of interest when speaking to a wide audience of buyers, ensuring a healthy and fair bidding process. All of this is still done on a highly confidential and controlled basis at the discretion and approval of the seller.

Practices are in demand and in the last 12 months we can report the following statistics based on sales handled by Christie & Co in the Midlands:

  • 54% of practices sold to first time buyers
  • 26% of practices sold to independent groups
  • 20% of practices sold to corporate operators
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