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August 4, 2020

60% sales boom for food manufacturer during Covid-19

A food manufacturer and wholesaler in Shrewsbury has been able to expand its services and safeguard the future of the business with the help of a six-figure Coronavirus Business Interruption Scheme (CLBILS) package from Lloyds Bank.

Oriental Food Express, which supplies Asian food ingredients to restaurants and oriental supermarkets including Wing Yip, saw a significant increase in demand for its products immediately following the coronavirus outbreak as people spent lockdown honing their cooking skills and experimenting with new dishes. Its sales doubled in March compared with the same period last year, and were up by 60% in April.

The loan helped the business to ramp up production of its popular Chinese dumplings and Xiao Long Bao Buns, while investing in development of new flavours and varieties to expand its range. As production increased, it was able to continue paying all staff wages, meaning that none of the forty staff at its Shrewsbury production site were placed on furlough or lost their jobs.

The funding has also been crucial in offsetting income lost from a drop in export sales, which normally account for around 40% of Oriental Food Express’s sales and which have been significantly affected by the pandemic. The business is anticipating a longer-term dip in demand from international students who usually make up a big proportion of their target audience and may no longer be attending courses in the UK for the coming academic year.

Daniel Wang, general manager at Oriental Food Express, said: “We saw a huge spike in demand during the lockdown period, which presented a big opportunity for our business, but also meant we faced a number of operational challenges.

“The finance package provided by Lloyds Bank provided us with the cashflow we needed to react quickly to make the most of this demand. It will also help to provide us with extra support as we move forward and demand continues to fluctuate.”

Numan Rezaul, relationship manager at Lloyds Bank Commercial Banking, said: “Oriental Food Express is a fantastic example of a business that was able to quickly adapt to the changing landscape after the coronavirus outbreak, and reap the benefits as a result.

“We’re pleased that we have been able to support them during this time and will remain by their side as they face new challenges in the months ahead.”

July 23, 2020

Knock Castle Hotel and Spa in Crieff brought to market

Knock Castle Hotel & Spa dates back to 1870 and is well-known as the grand former home of Scottish shipping magnate, Lady MacBrayne.

The hotel comprises a total of 30 letting bedrooms, nine of which are situated in the adjacent ‘Castle Lodge’ building. The site sits within approximately three and a half acres of mature gardens and woodland in a stately, baronial sandstone structure which has obvious nods to a ‘castle’ with its conical towers, stepped chimney and carved entrance lintel reached by stone lion flanked stairs. The site also has a lower ground spa, a rooftop terrace/restaurant which offers panoramic views of the beautiful Strathearn Valley, and a self-contained pool and leisure club. Two function suites are available to suit small meetings, weddings or grand gala dinners, and the residents’ cinema can also be used for small meetings of up to 12 people.

The sale comes complete with two additional two-bedroom flats – one in the main hotel building and the other on the top floor of the Castle Lodge – both of which could be utilised as owner’s accommodation or for staff use.

Set in the idyllic hills of the Strathearn Valley and within one hour’s drive of Scotland’s major cities, Knock Castle Hotel & Spa offers uninterrupted views across the beautiful Perthshire countryside and the historic town of Crieff.

The business is well recognised as a reputable wedding venue and is also popular for leisure and spa breaks as well as conference meetings. The hotel offers a first-class opportunity for a discerning operator to further transform an already popular venue to the next level.

Brian Sheldon, regional director (Scotland), who is handling the sale, comments, “This presents a great opportunity for the discerning buyer to further enhance this established business and increase income and profit.”

Knock Castle Hotel & Spa is on the market for an asking price of £1,750,000.

The seller will also accept offers for Knock Castle and Castle Lodge individually, for asking prices of £1,250,000 and £500,000 respectively.

July 15, 2020

Award-winning Swansea hotel and wedding venue pushes for summer return

An award-winning, family-run hotel, pub and wedding venue in Swansea is hoping to welcome patrons back in July following support from Bank of Scotland.

Based on the Gower peninsular, the King Arthur Hotel has secured a six-figure loan from Bank of Scotland via the Coronavirus Business Interruption Loan Scheme (CBILS) to help it cover critical overheads and support its cashflow, including paying suppliers, when the time comes to re-open. The business, which has furloughed around 50 members of staff, has been operating a takeaway-only service since government lockdown measures were introduced to reduce the spread of coronavirus.

While the funding is expected to support the business until the autumn, the hotel’s owners predict that missing out on a full summer of trading could undo nearly 30 years of growth. King Arthur Hotel, which includes an 18th century pub and holiday cottages, has previously been recognised as Wales’ best wedding location.

Owner and managing director Kim Slade said: “We’ve grown the hotel from the ground up, creating a successful wedding venue and a holiday lettings business that brings visiting trade for the local economy in Swansea. While next year will undoubtedly be busy in terms of postponed weddings, losing an entire summer of lettings and activity in the pub and restaurant is almost the same as losing a full year of income.

“Although the Welsh government’s current plan for re-opening the visitor economy is different to the rest of the UK, we’re hopeful that we can welcome guests soon and minimise the impact of lockdown.

“In the interim, Bank of Scotland has been quick to step in and given us the confidence that we will be able to make the most of whatever trading is possible this year.”

David Williams, relationship manager at Bank of Scotland, said: “Kim and her family have demonstrated real resilience in reacting to the challenges brought about by coronavirus. Like many businesses in the hospitality industry, they are planning how best to accommodate for losing out on their most critical period of trade while being reactive to the possibility of opening at short notice.

“The ability to get back up to speed quickly is essential but also comes with significant capital expenditure and uncertainty around cashflow. As such, we’re standing by the side of the nation’s tourism industry and providing the stability for them to re-open with confidence when the time comes.”

July 15, 2020

Scottish hotel business Crieff Hydro secures £5m CBILS support

Crieff Hydro, a family-run Scottish hotel group, has secured a £5m CBILS overdraft from Santander UK to help the business through the challenges facing the hospitality and leisure sector during the pandemic.

The company, which was founded in 1868, owns and operates seven hotels across Scotland. The hotels are in rural locations and offer a range of accommodation and outdoor activities, including self-catering options – making them well placed to provide a safe and socially distanced environment for visitors as the hospitality and leisure sector reopens in Scotland.

The £5m CBILS support package helped to support Crieff Hydro through the challenges of lockdown and a sharp drop in income when the hotels closed their doors over three months ago. With help from Santander UK the business has focussed on preparing to reopen and will welcome guests from 15 July.

Stephen Leckie, CEO Of Crieff Hydro, commented: “Our relationship with Santander has always gone beyond banking. Our relationship director, Kirsty Johnston, combined her knowledge of our business with the workings of the bank and the new CBILS scheme to support us when we needed it most. Now we can focus on reopening and we can’t wait to welcome our guests back.”

Kirsty Johnston, relationship director at Santander UK, said: “Crieff Hydro is a fantastic business that puts its guests at the very heart of everything it does. By working with them to provide support through CBILS we are delighted that they’ll be ready to reopen and offer the warm welcome and range of facilities its guests have come to expect.”

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 the ways that businesses have adjusted, and thrived, since the outbreak of coronavirus. You can find these webinars and a list of other helpful resources at www.santanderbreakthrough.co.uk/coronavirus.

July 13, 2020

La Barca is grilled to bits with £175k support from Santander

La Barca is an established Italian restaurant that has operated from the same premises in central London for over 40 years. The restaurant has an impressive list of regular diners ranging from high profile politicians, actors and TV and film directors as well as visitors, residents, and businesses. The restaurant closed in March in line with the government’s guidance and is excited to be reopening this Wednesday 15 July.

Santander UK agreed a £175k CBILS support package with the funding supporting La Barca to invest in internal renovations to ensure social distancing can be adhered to. The funding will also help to equip colleagues with personal protective equipment (PPE) and fund marketing to help bring in new income streams. The restaurant has increased its outdoor seating capacity and introduced “fine dining” takeaway and catering services.

Tanya Davoli, part owner and director at La Barca, said: “With Santander’s support we could invest in increasing outdoor seating for customers as well as training and safety equipment for our staff. Santander not only provided us with support to meet our financial obligations but assisted us in preparing the restaurant for the future, making the business safer, more competitive and attractive going forward.”

Robert Riffkin, relationship director at Santander UK, commented: “We’re delighted to be working with La Barca to provide vital funding so the business can adapt and get ready to reopen. Its many loyal customers will be happy to return for their fantastic food and improved take away and catering services.”

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 ways that businesses have adjusted, and thrived, since the outbreak of coronavirus. You can find these webinars and a list of other helpful resources at www.santanderbreakthrough.co.uk/coronavirus.

July 13, 2020

The great lockdown cook off – Yorkshire firm takes slice of pizza oven sales spike

A Pudsey metal fabricator is ramping up production of outdoor pizza ovens and indoor BBQ grills to meet demand for luxury home cooking appliances with support from Lloyds Bank.

Huey Group Ltd has seen a surge in demand for its Deli Vita outdoor pizza ovens, stocked by retailers including John Lewis, which the firm manufactures under licence, as homeowners spend on home improvements and gadgets during lockdown.

The firm has also secured the contract to produce a new range of Japanese style indoor grills, while it’s meeting businesses’ needs for hygiene essentials by manufacturing a standing soap dispenser for the first time.

Shifting its production helps the business to make up for cancelled orders for its bespoke catering projects, which has recently included transforming an old bus into a gin bar and converting a Fiat 500 into a mobile pizza kitchen. Its most popular catering product is a horsebox style trailer, often used by food and drink vendors at events.

These catering projects typically comprise half its overall sales, but its order book disappeared overnight due to the Covid-19 pandemic.

Huey Group turned to Lloyds Bank to secure £45,000 as part of the Coronavirus Business Interruption Loan Scheme (CBILS). It follows the bank helping the firm to quickly get off the ground when it started trading in January last year, by providing a £100,000 invoice finance line.

Martin Wilson, owner at Huey Group Ltd, said: “Many people are craving new cooking experiences at home to keep them entertained, while satisfying an appetite for restaurant quality food through lockdown.

“This is a vital revenue stream for us as our traditional business delivering bespoke catering facilities suffers from the blow Covid-19 has had on the events and hospitality industries. But we’re confident that demand here will pick back up, particularly as restaurants and pubs adapt to trading with physical distancing restrictions in place – by maximising use of their outdoor space.

“The support from Lloyds Bank meant we didn’t have to worry about money with the onset of the crisis, allowing us to plan ahead, diversify and boost the consumer appliance side of the business.”

Gary Whittaker, relationship manager at Lloyds Bank, said: “While consumers may be spending less money across the economy, many are buying more goods for their homes in lockdown life.

“Huey Group were quick to respond and adapt to make the most of this opportunity, protecting the firm while its catering facility business recovers. It’s a great example of a firm we’re supporting as we help Britain recover.”

July 9, 2020

Association of Taxation Technicians: Proof of the pudding in the eating for VAT change

The Association of Taxation Technicians (ATT) welcomes the temporary VAT cut for food and drinks..

In the Plan for Jobs presented by the chancellor, it was announced that the rate of VAT on supplies of food and non-alcoholic drinks by restaurants, pubs, bars, cafes and similar premises will be cut temporarily from 20% to 5%.

Jeremy Coker, ATT President, said:

“Struggling hospitality businesses will welcome this temporary VAT cut but, as it comes into effect on 15 July, they will have only a week to adjust prices and update their tills and accounting systems.

“The proof of the pudding is in the eating, so it is welcome that HMRC are committing to publishing further guidance in the coming days, especially as the exact scope of the reduction, and who can apply it, remains unclear. The businesses who will benefit from this measure are still getting to grips with reopening and the adjustments they need to make to keep their staff and customers safe. We would urge HMRC to make guidance as simple and practical as possible.”

Also announced on 8 July was the introduction of ‘Eat Out to Help Out‘. This will see the government contribute up to £10 per head towards the cost of certain eat-in meals bought by diners on Mondays to Wednesdays during August.

Jeremy Coker, continued:

“This proposal is certainly innovative, but the interaction with the tax system will have to be considered. In particular, we need to know how those businesses who receive payments from the government under the scheme will treat them for VAT purposes.

“The changes announced today serve to once again highlight the complicated rules around VAT on food and drink. Many of these derive from the old purchase tax regime, which was replaced with VAT when the UK joined the EU in 1973. As a result, they are often out of date and difficult to apply in the modern world.

“We suggest the end of the Brexit transition period on 31 December 2020 presents an opportunity for the government to consult more widely on ways to modernise and rationalise the VAT rules on food and drink. A clearer, more up to date set of rules would reduce confusion and save both businesses and HMRC the time and costs associated with arguments over VAT treatment.”

July 8, 2020

Wylie and Bisset advises hospitality operators facing financial difficulties to apply to the RPS

Ahead of the reopening of pubs and restaurants on Wednesday 15th July as lockdown measures are eased, chartered accountants Wylie & Bisset is advising those hospitality sector operators facing financial difficulties because of the coronavirus to consider applying to the Redundancy Payments Service (RPS) for financial assistance.

With estimates that around 100,000 of the 280,000 people employed in Scotland’s hospitality sector could lose their jobs – 55% of workers in Scotland’s licensed trade have been furloughed due to Covid-19 and 29% have been made redundant – many businesses having struggled to access financial support throughout the lockdown, and larger businesses have been denied grant support altogether.

Operators that cannot afford to pay their employees redundancy pay can apply to the RPS for assistance. If approved, the RPS will make statutory redundancy payments directly to the redundant employees on the employer’s behalf.

Any employer who is not subject to formal insolvency proceedings can apply. This includes businesses that: are still trading; have stopped trading but have not gone formally insolvent and those that will soon stop trading but are not going formally insolvent.

Donald McKinnon, managing partner at Wylie & Bisset, said: “With many hospitality businesses having been hit hard by the lockdown, with many teetering on the edge and struggling to survive, the RPS may act as a lifeline for those worrying about having to make redundancies but unable to afford the redundancy payments, which, in turn, may force the business into a route of formal insolvency.

“Having the government help pay for some redundancies may save the business going forward.”

RPS payments are subject to statutory limits. These include a maximum of 20 years redundancy that can be paid and a cap on a weekly rate of pay. The RPS cannot make any other types of payments, such as arrears of pay, holiday pay, or notice pay unless the employer enters formal insolvency proceedings.

If the RPS makes statutory redundancy payments on behalf of a solvent employer, it will then look to recover the cost of the payments from the employer. If the employer fails to repay debt, enforcement action may be taken.

“As an employer in financial difficulty it is your responsibility to consider whether it remains appropriate to continue trading, and to seek professional advice if you are unsure,” said McKinnon.

Employers must make statutory redundancy payments to redundant employees who meet the qualifying criteria for redundancy under the Employment Rights Act 1996. In most cases this will be employees who have worked continuously for their employer for two or more years.

Employers are required by law to consult with their employees about any potential redundancies. They must also notify the Insolvency Service in advance of any proposal to dismiss 20 or more employees as redundant at an establishment

July 8, 2020

Award-winning Swansea hotel, pub & wedding venue pushes for summer return

An award-winning, family-run hotel, pub and wedding venue in Swansea is hoping to welcome patrons back in July following support from Bank of Scotland.

Based on the Gower peninsular, the King Arthur Hotel has secured a six-figure loan from Bank of Scotland via the Coronavirus Business Interruption Loan Scheme (CBILS) to help it cover critical overheads and support its cashflow, including paying suppliers, when the time comes to re-open. The business, which has furloughed around 50 members of staff, has been operating a takeaway-only service since government lockdown measures were introduced to reduce the spread of coronavirus.

While the funding is expected to support the business until the autumn, the hotel’s owners predict that missing out on a full summer of trading could undo nearly 30 years of growth. King Arthur Hotel, which includes an 18th century pub and holiday cottages, has previously been recognised as Wales’ best wedding location.

Owner and managing director Kim Slade said: “We’ve grown the hotel from the ground up, creating a successful wedding venue and a holiday lettings business that brings visiting trade for the local economy in Swansea. While next year will undoubtedly be busy in terms of postponed weddings, losing an entire summer of lettings and activity in the pub and restaurant is almost the same as losing a full year of income.

“Although the Welsh government’s current plan for re-opening the visitor economy is different to the rest of the UK, we’re hopeful that we can welcome guests soon and minimise the impact of lockdown.

“In the interim, Bank of Scotland has been quick to step in and given us the confidence that we will be able to make the most of whatever trading is possible this year.”

David Williams, relationship manager at Bank of Scotland, said: “Kim and her family have demonstrated real resilience in reacting to the challenges brought about by coronavirus. Like many businesses in the hospitality industry, they are planning how best to accommodate for losing out on their most critical period of trade while being reactive to the possibility of opening at short notice.

“The ability to get back up to speed quickly is essential but also comes with significant capital expenditure and uncertainty around cashflow. As such, we’re standing by the side of the nation’s tourism industry and providing the stability for them to re-open with confidence when the time comes.”

July 8, 2020

Leading hotel group welcomes staycationers thanks to CBILS funding

Torquay Leisure Hotels Limited, the South West’s largest serviced accommodation provider, successfully secured a £1m Coronavirus Business Interruption Loan Scheme (CBILS) facility from Santander UK. The Group has now begun reopening in stages to comply with industry and government guidelines.

The Group was established in the 1940s and has seen strong growth in recent years. The business successfully operates four hotels, apartment complexes and leisure centres and provides a range of services for guests – from weekend and spa breaks, to wedding functions and self-catering holidays.

Torquay Leisure was forced to close its doors on 20 March causing its income to stop overnight. 359 of its staff were placed on furlough during the uncertainty. The finance package has supported the business during the closure and enabled it to prepare to reopen safely from 4 July. As international travel remains uncertain, The Group is well placed to safely and warmly welcome Brits who choose to staycation.

Ian Piercy, managing director & CFO, Torquay Leisure Hotels Limited, said: “Our experience with Santander is nothing but excellent, unwavering support of our business, allowing confidence in our planning to address the current challenges.”

Martin Pitcher, relationship director, Santander UK, said: “As the lockdown measures in the UK begin to ease, thoughts turn to summer holidays. For many, they will now be looking to stay in the UK, so I am delighted that our funding has enabled Torquay Leisure to reopen. This will provide crucial support to the local economy and vital hotel and leisure employment, as well as a much-needed break for many Brits.”

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 – the sessions see experts explore some of the ways that businesses have adjusted, and thrived, since the outbreak of coronavirus. You can find these webinars and other helpful resources here: www.santanderbreakthrough.co.uk/coronavirus.

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