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June 30, 2020

Scottish Transport group on the road to success with £9m Group funding deal

Bibby Financial Services (BFS) has provided a £9m Group funding facility to support the re-finance of Currie European Transport Ltd, a transport and storage solutions group made up of 7 trading companies across Scotland, England, the Netherlands and France. The group, which is headquartered in Dumfries, Scotland, is using the funding to support an ambitious acquisition led growth strategy.

The funding included a £1.5m CID facility to support the acquisition of Laser Transport International Ltd, a haulage company based in Kent with a turnover of £18m, bringing the Group’s total turnover to £75m.

BFS was introduced to the business by Robert Stewart of Generis Corporate Finance LLP who was very influential in driving the deal forward and managing all the external stakeholder’s. The BFS team also worked with Stephen Turner, the Group’s managing director, and his management team to guide the business through considerable legal, geographical and technical complexities.

The facility has already allowed the successful acquisition of Laser Transport International Ltd, and the increased working capital will support Currie Group’s continued growth plans across the UK and Europe.

Stephen Turner, managing director, Currie European Transport Group. commented:

“We wanted to work with a relationship-based funder who not only understood our market but understood what we were trying to achieve. We needed to move quickly to seize an opportunity, and right from the start our BFS team, led by Ronnie Stokes and Dan Burton, understood that.

“BFS managed to conclude a deal in just eight weeks, even though it involved seven companies and four countries. We are excited about the acquisition of Laser Transport, and the facility we have in place will allow us to continue to grow”.

Ronnie Stokes, corporate manager, Bibby Financial Services, said:

“We were approached by an ambitious client who knew what they wanted but needed a lender who was willing to take the time to understand their business. Arranging a deal in eight weeks, across seven companies and four countries was never going to be easy but speed of delivery is vital for UK businesses looking to grow once again.

“This partnership is hopefully just the start, and we can’t wait to see what Stephen and the team at Currie Group turn their ambition to next.”

Dan Burton, regional head of corporate, Bibby Financial Services, added:

“Being an independent lender allows us to create facilities that meet the unique needs of our clients. We could clearly see the long term benefits that the Group’s growth strategy would bring and by working closely with Stephen and his team, we’ve provided a facility that has not only allowed them to make a successful acquisition, but will support them moving forward.

“I want to thank everyone who’s played a part in getting this deal arranged at BFS, and Robert Stewart of the Generis Advisory who was a key link between Bibby and Currie Management.”

June 30, 2020

Octane Capital completes £2.6m bridge-to-let loan in 9 days

‘Product-less’ lender, Octane Capital, today announced it has completed a £2.6m bridge-to-let loan in just nine days to a client of specialist broker, PCF Financial Services (‘PCF’).

The 2-year facility was made against a block of 47 unencumbered residential flats in Suffolk with a value of £5m. The borrower, an experienced and acquisitive landlord, wanted to free up capital to purchase further properties in an attractive market.

PCF’s client plans to get the flats fully let and refinanced during the in-built 7-month ERC-free period (with the buy-to-let facility provided by Octane Capital acting as a back-up).

Octane Capital offers 2- and 3-year bridge-to-let facilities, with an ERC-free period at the start of the term to allow developers to exit without penalty, and includes a buy-to-let period acting as a safety net for borrowers.

Mark Posniak, managing director, Octane Capital, commented:

“Despite the complexity of the security, we had the best of both worlds on this deal. PCF’s client is a highly experienced UK landlord while PCF are an exceptional broker who packaged everything just as we needed it. On this occasion the loan made was at roughly 50% LTV, but brokers should be aware that we will consider higher LTVs and more challenging borrower profiles with this particular product. This product was perfect for the client too as it offers the flexibility of a bridge for the first 7 months coupled with the security of a buy-to-let for the remainder of the term if needed.”

Mark Sarratt, managing director, PCF, added:

“This was specialist short-term property finance at its finest. We really appreciate the speed and attention to detail demonstrated by Rick Hollingsworth and the rest of the Octane team. When it comes to complex and larger loans like this, Octane are among the best out there. We’ll definitely be putting more deals their way in the future.”

June 29, 2020

Funding deal enables Manchester developer to buck trend with new residential scheme

North West bespoke property developer Northern Property Consortium (NPC) has agreed a deal with Yorkshire-based SME funding specialist One Stop Business Finance to push forward with its third new housing development this year valued at £750,000.

The development of two bespoke four-bedroom new homes in a highly sought-after location near Hyde, Greater Manchester marks an important next stage in the growth of NPC, which was founded last year by experienced construction manager Rick Parker. It is a project that enables NPC to expand its property portfolio at a time when construction across the UK remains heavily subdued following the coronavirus pandemic.

The acquisition of the Godley Brook Lane Site and its development has been made possible through funding provided by One Stop Business Finance, who have supported NPC on its previous two developments. Because of the way they operate, they have been able to continue providing much-needed finance to SMEs across the UK throughout the Covid-19 crisis, despite many lenders dramatically scaling back the availability of funding.

One Stop Business Finance’s experience and understanding of the rapidly changing circumstances that affect property development ensured it could adapt quickly to NPC’s requirements and help bring the deal to completion despite a sudden tightening in lending conditions by many of the larger lenders.

Director of NPC, Rick Parker said: “We’re thrilled to get the ball rolling on this development which is in a superb location that’s attracting a lot of interest locally. Despite the impact of the coronavirus pandemic, the housing market is still very active and there is still a pressing need to create high quality new homes, particularly in highly sought-after locations like our latest site in Godley.

“It’s no secret that businesses have found it more difficult to access property development funding since the coronavirus pandemic hit. That’s why having One Stop Business Finance as our funding partner makes such a big difference, giving us confidence and certainty that any funding needs we have can be met quickly and professionally.”

Andrew Mackenzie, MD of One Stop Business Finance added: “We’re delighted to have been able to support NPC on its latest development during a difficult time for the construction sector. As Rick knows well, having funding available at the stages when it is needed, with the flexibility to adapt quickly when circumstances change, is so vital in successful property development. That’s why our ability to broker deals with numerous finance providers and from our own lending book is so beneficial and why we continue to work with so many developers like NPC.”

 

June 29, 2020

Scottish start up capitalises on new working from home culture

Throughout the Covid-19 crisis, small businesses have had to continually adapt their business models to survive. Many are facing untold challenges in the wake of changing consumer behaviours and supply chain disruption, while others have been able to find opportunities to adapt and grow despite the disruption.

Sara Roberts, founder of Healthy Nibbles, a Scottish-based snack delivery service delivering across the UK, is one business owner who has adapted to the challenges of Covid-19 and is achieving growth despite the difficult environment.

Previously providing tech-enabled healthy vending machines to offices in London, Sara trialled home delivery of healthy snacks at the start of lockdown and found there was a huge demand for her products as employers searched for new ways to motivate their staff from home.

Quick to identify that the working from home culture originally enforced by government restrictions was more than just a fleeting moment, Sara has now adapted her service to deliver healthy snacks across the country direct to employees’ homes.

She has since included a home-delivery service as part of her future business strategy and is planning how best to optimise this new offering as lockdown lifts.

Sara Roberts, the founder of Healthy Nibbles, said: “Since founding Healthy Nibbles, I’ve learnt that as a small business owner you need to make the most of the challenges that come your way and not be afraid to re-evaluate your business plan if circumstances change.

“Initially I was concerned about the impact working from home regulations would have on Healthy Nibbles, but I am confident that I have been able to find a new way for Healthy Nibbles to add value to customers during this uncertain time, and beyond.”

Richard Bearman, the managing director of Start Up Loans, said: “We recognise that in the current environment small businesses across the UK are facing significant challenges. However, it’s brilliant to see that some businesses are finding ways to make the disruption work for them and are thriving as a result. We urge everyone to continue supporting small businesses, which will play a large part in our economic recovery, as they adapt to ever-changing demands without the financial insulation that many larger firms have access to.”

Start Up Loans – part of the British Business Bank – is continuing to provide support to business owners like Sara through its network of delivery partners.

It has also published a series of guides on important areas of business including social media, marketing and SEO. The guides are designed to ensure business owners, existing and new, have all the resources they need to build and grow a successful business.

June 26, 2020

Arbuthnot Commercial backs MBO of Britdoors and JCK

Arbuthnot Commercial ABL has supported a management buyout (MBO) of Britdoors and JCK, two door manufacturing businesses within the System Building Products Group. The £3.75m asset based lending facility comprised a revolving invoice discounting line, a plant & machinery loan and a cashflow loan.

The MBO will form a new company, Unity Group Ltd, comprising of Unity Doors and the existing JCK brand.

Unity Doors manufactures residential composite entrance doors, while JCK specialises in handcrafted and bespoke timber doors for both retail and high-end specification markets.

The highly experienced MBO team was led by Graham Hughes, MD and operations director, who has been with the business seven years and has 30 years’ experience with blue-chip manufacturing businesses.

Graham Hughes, MD and operations director, said: “Right from the start Arbuthnot Commercial ABL demonstrated clear experience in working with manufacturing businesses. We gained a lot of comfort from the fact that they were interested in our processes and in us as a management team. They are very enthusiastic supporters of our business and share our down to earth, straightforward approach; it is the ideal match. Their systems are modern and efficient, enabling us to view our availability on a day-by-day basis, while allowing for instantaneous reconciliation.

Completing the MBO with Arbuthnot Commercial ABL has created a very exciting opportunity for our team to focus on developing and expanding the business. We look forward to generating incremental top line growth by focusing our sales efforts across both brands, while reducing costs thanks to operational efficiencies.”

June 26, 2020

Egg sales soar for family farm delivering direct to homes

A family-owned free-range egg farm in Oxfordshire has diversified its operations to help meet a significant uplift in demand for eggs during the Covid-19 pandemic, after securing support from Lloyds Bank.

Witney-based Mayfield Eggs has adapted its processes to provide packs of fresh free-range eggs to homes across Oxfordshire, whilst maintaining its supply to local independent stores. The shift has helped to ensure that elderly and vulnerable residents who are unable to get to the shops can still buy eggs during the coronavirus outbreak.

The farming business has been able to deliver its produce more quickly and efficiently with the help of a new on-site packaging facility and grading machine, which speeds up the packing process by sorting the eggs by size and weight and packing them into cartons. The machine was purchased with the help of a £480,000 loan provided as part of Lloyds Bank’s Clean Growth Financing Initiative (CGFI).

The funding has also enabled Mayfield Eggs to cut its emissions by removing road miles from transporting eggs to and from the previous packing site, as well as reducing operating costs.

James Lyall, director at Mayfield Eggs, said: “As more people are cooking and baking at home during lockdown, demand for eggs has rocketed. We pride ourselves on being part of the community, and wanted to adapt our processes to offer a door-to-door delivery service for local residents during this difficult time.

“Our new packing facility and grading machine have enabled us to get our produce out to residents more quickly and efficiently, whilst ensuring every egg we deliver is as fresh and delicious as possible.”

Mayfield Eggs, founded by Joy and Gordon Lyall more than fifteen years ago and led today by their son, James, provides the highest-quality free range eggs, with a rich golden yolk, that are delivered to customers within 72 hours of being laid to ensure optimum freshness.

James Lyall added: “Lloyds Bank has been by our side throughout our incredible journey from our humble beginnings, with my mother, father and I selling our eggs at the end of our driveway, to supplying renowned customers throughout Oxfordshire and beyond. We look forward to continuing our journey with them.”

Sarah Beckley, agricultural relationship manager at Lloyds Bank, said: “Mayfield Eggs is a great example of a local business that has adapted to the challenges presented by COVID-19 for the good of the local community, and it’s been great to see their investment in the new packing plant aid their efforts.

“We’re working with business customers right across the region to offer guidance and help them access the support that’s available during this difficult time.”

June 26, 2020

Giggling Squid secures £5m funding from Barclays through the CBILS

The country’s leading Thai restaurant group has completed a £5m loan by accessing the CBIL scheme through Barclays.

With 35 sites across the Midlands and Southern England, Giggling Squid had been performing extremely well going into the crisis, despite the well-publicised headwinds effecting the casual dining sector.

The Barclays loan will cover liquidity needs and ensure the ongoing viability of the business through the pandemic, safeguarding almost 1,000 jobs. As the UK transitions out of lockdown, the funding will enable the business to kick start its operations and ensure it is well placed to avail itself of the opportunity that the new normal will present.

Andrew Laurillard, CEO and co-founder of Giggling Squid, said: “When the government mandated Lockdown, we saw our revenues fall from a positive like for like level to zero over 9 days at the end of March 2020. The business urgently needed liquidity to survive the crisis. Barclays could not have been more helpful in supporting us through this awful situation.

“We expect to survive and thrive once the restrictions lift and this is entirely due to the extraordinary assistance of the account team and the bank as a whole, in helping us access the government aid to the fullest extent.”

Mike Saul, head of hospitality & leisure at Barclays, commented: “Barclays is absolutely committed to supporting all businesses through these uncertain times and we understand the challenges they face. We are working closely with clients like Giggling Squid to provide the vital funding they need to help them come out strongly the other side and we look forward to seeing their restaurants open and operating again.”

June 25, 2020

High street stores begin to reopen with Lloyds Bank support

Branded footwear retailer Charles Clinkard is set to reopen all of its stores in the coming weeks, with the support of Lloyds Bank.

The Middlesbrough-headquartered retailer, which has more than 30 stores and concessions across the UK, has secured a £2m Coronavirus Business Interruption Loan via its long-term banking partner Lloyds Bank.

The funding, which accompanies a significant extension to their current overdraft facility provided by the bank, will enable the business to get back up to speed as non-essential retailers are allowed to open their doors again from 15th June.

Plans are in place for Charles Clinkard to re-open stores with a reduced workforce and social distancing measures, in addition to optional booked appointments, to enable customers to return with confidence. The funding will continue to support the retailer’s overheads, including investment in its £10m summer range.

Owner and managing director, Charles Clinkard, said: “The last few months have been a challenging period for non-essential retailers. We’ve been fortunate to maintain around 30 per cent of our usual revenue through online sales and to have the support of many of our suppliers and independent landlords during the lockdown period.

“However, the arrival of the pandemic has placed a significant strain on our planning for the spring and summer seasons. Lloyds Bank stepped in swiftly and has put us in a position where we can bring our stores out of hibernation at pace while beginning to bring our team back from furlough.”

Hannah Douglass, relationship director at Lloyds Bank, said: “The retail sector is among those hit hardest by the economic effects of Covid-19 and will continue to face working capital challenges as it gets back up to speed. Charles Clinkard is a great example of the ambition within the sector to return to trading and we look forward to helping them meet the needs of consumers as the economy inevitably evolves over the next 12 months.”

June 25, 2020

Independent booksellers getting back to business thanks to Lloyds Bank support

A much-loved independent booksellers is reopening its doors and returning to normality thanks to a six-figure loan from Lloyds Bank.

Family-run Topping & Company Booksellers had to close its stores in Ely, Bath, St Andrews and Edinburgh, in accordance with government guidelines back in March. The company furloughed almost all of its 50 employees, sales dropped significantly and their popular literary events and reading groups were all cancelled.

With face-to-face transactions previously making up around 95% of sales, co-founder Robert Topping and his son, Hugh, adapted how they worked by selling books over the phone from their homes and improving the company’s website to increase online revenue.

The business continued to work with authors from across the UK to curate reading lists and collections for visitors to its website, and delivered signed copies of the latest fiction and non-fiction books to its loyal base of subscribers every month. However, these measures still left Topping & Company Booksellers surviving on 20% of sales compared with before lockdown.

The £250,000 loan from long-term banking partner Lloyds Bank, via the Coronavirus Business Interruption Loan Scheme (CBILS), meant the company could continue to pay for stock while its stores were closed.

The recent easing of lockdown in England saw the company reopen its Ely and Bath stores on 15th June, and it plans to reopen its Scotland stores on the 29th. Encouragingly, sales in Ely and Bath have already returned to normal, and Robert Topping cites current political and societal movements as a key factor in the rise in sales.

He said: “The relationship between a community and its independent bookshop is something unique, especially in times of uncertainty. We’ve seen so many political and societal changes in the first half of 2020, so it’s no surprise that we’ve seen an uplift in sales of non-fiction and current affairs books, especially on the topic of race due to the Black Lives Matter movement. We’ve also heard from customers that they’re particularly keen to support independent bookstores during these times – knowing the competition we face from major online retailers.

“Lloyds Bank’s support has been vital in getting us through a difficult period to where we are now, on the brink of having all four stores back up and running and with sales getting there too. That’s the advantage of having a relationship manager who knows our business inside out from a bank that’s supported us all these years.”

Topping & Company Booksellers has been a customer of Lloyds Bank since it opened in 2002.

Scott Murphy, relationship manager at Lloyds Bank, added: “It’s wonderful to see Topping & Company Booksellers making great strides in its recovery after an uncertain few months. We will continue to be by the side of the business to ensure it emerges from lockdown in as strong a position as possible, and we’ll be supporting other firms across all sectors to do the same.”

June 25, 2020

Schoolbooks.ie raises €100,000 through Linked Finance during the coronavirus crisis

Schoolbooks.ie, based in Tralee, Co. Kerry, has raised over €100,000 from Linked Finance, Ireland’s leading peer-to-peer (P2P) lender. As Ireland’s largest online retailer of schoolbooks, the funds raised have been used by the company to increase its art, craft and school-book stock to cater for increased demand as parents have coped with home-schooling during the coronavirus pandemic.

In the three months since the beginning of March, Irish SMEs have raised working capital and investment funding worth over €5.2m from Linked Finance since the Covid-19 pandemic hit the country.

Schoolbooks.ie saw increased demand for its products as a result of school closures during the coronavirus pandemic which saw thousands of parents across the country home-schooling their children.

choolbooks.ie stock a wide range of school books, art supplies and craft materials to keep children entertained and learning from home. Given the size and urgency of these orders, Schoolbooks.ie sought access to fast and affordable funds to fulfil orders and replenish stock.

Established in 2004, Schoolbooks.ie is Irish owned and works to take the hassle out of buying school books and bring better value to parents. This is the third loan Schoolbooks.ie has used Linked Finance to raise funds to expand its business.

Commenting on the funding, Paul McCann, managing director, Schoolbooks.ie:

“Linked Finance has been our go-to loans provider in recent years. They understand our business and the needs of SMEs and the support we’ve had from them during the Covid-19 pandemic has made a real difference. When we needed to scale up art & craft supplies and school-book stock to meet home-schooling demands during the lockdown they were there to provide the finance we needed, fast and with no hassle.”

Niall Dorrian, chief executive of Linked Finance said:

‘‘The purpose of our platform is to finance great Irish businesses like Schoolbooks.ie, and provide them with fast, easy access to funding so they can unlock the full potential of their business. The drive, innovation and resilience of Irish SMEs is essential to the recovery of the Irish economy from the shock of recent months. Our experience supporting SMEs during this crisis shows the critical importance of the next government making non-bank lenders such as Linked Finance part of the solution to support SMEs as the country reopens.”

During the current pandemic, Linked Finance has worked with businesses in 21 counties, across all sectors including medical, construction and wholesale businesses to raise capital to fulfil orders including essential supplies such as PPE equipment and scrubs.

In March, Linked Finance launched a new “Deferred Start Loan” for businesses affected by the coronavirus. The innovative 15-month loan allows businesses to borrow up to €100,000, with repayments due in 12 monthly instalments after the first 3 months, during which no interest or capital repayment will be paid.

Since its launch in 2013 Linked Finance has provided loans totalling over €135m, for more than 2,500 ambitious local businesses in every county of the country.

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