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June 1, 2020

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

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

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

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

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

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

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

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

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

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

May 29, 2020

Popular family-run restaurant hotels receive CBILS boost

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.”

May 27, 2020

SMEs in hospitality and leisure worst affected by Covid-19

New research from Aldermore, the specialist bank, reveals how the Covid-19 pandemic is hugely impacting small to medium-sized enterprises (SMEs) in different sectors across the UK. SMEs in the hospitality and leisure industries have been the hardest hit by the pandemic, losing on average 54% of their monthly business income. SMEs in the food and drink industry come in a close second, losing 52% of their monthly income.

Strict government rules around social distancing, mean businesses in sectors which traditionally require close face to face human interactions have on average lost the largest proportion of their monthly business income. A full sector breakdown can be found in the table below. All sectors in the UK have faced massive challenges, with the average SME losing over a third (34%) of monthly business income as a result of the crisis.

Tim Boag, group managing director, business finance at Aldermore, said: “Conditions are extremely tough for UK businesses at the moment. The pandemic has resulted in companies within the hardest hit sectors struggling to survive.”

“Small changes within a business can go a long way in preserving much needed capital. Even when the lockdown eases, business income will take time to recover and SMEs must continue to adapt to the ‘new norm’. Aldermore is here to back our customers and will continue to work closely with them, respond to their needs and provide the funding or guidance they are looking for.”

SMEs in the legal sector have on average been the least affected by the pandemic, losing 11% of their monthly business income. Advances in legal technology such as virtual courtrooms have allowed many law firms to continue working on cases remotely. Legal professionals have also come up with new ways to continue offering services such as Wills, which require witnesses to be present, while still abiding by strict social distancing measures.

Innovation has been one of the key factors influencing the impact the pandemic has had on businesses. SMEs in the manufacturing sector have been the most likely to have made adjustments to their business as a direct result of Covid-19 (56%). Unfortunately even by adapting their businesses, one in ten (11%) businesses believe they can only survive under current circumstances for approximately five months.

SMEs in the hospitality and leisure sector have been the worst affected by the Covid-19 pandemic losing 54% of their monthly business income

May 22, 2020

Travel and tourism is the sector worst hit by coronavirus

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

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

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

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

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

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

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

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

May 20, 2020

Historic midlands brewery secures support from Lloyds Bank

Independent Leicestershire-based family business Everards has successfully secured a £5m Coronavirus Business Interruption Loan Scheme (CBILS) from Lloyds Bank.

Everards, which owns over 170 tenanted pubs across the Midlands and brews a range of ales, has faced unprecedented challenges due to the coronavirus outbreak and temporary closure of pubs across the country.

The impact of the lockdown and the uncertainty over the length of pub closures on the firm’s cash flow has been immediate. The business has seen a significant decrease in turnover since last month and has had to furlough more than 70% of its staff.

Lloyds Bank has helped Everards to navigate the government support available and arranged a £5m funding package using the CBILS, which provides funding for businesses that are experiencing lost or deferred income as a result of coronavirus.

Nigel Allen, finance director at Everards, said: “It goes without saying that we’ve been significantly impacted by Covid-19. This loan will allow Everards to help continue to support our 170 individual business owners and enable us to remain on the front foot for re-opening once lockdown is lifted and pubs can re-open.

“It’s very difficult to envisage what the new post Covid-19 world will look like for the hospitality and leisure sector and how quickly consumers will return to their local pub. For us, the CBILS loan from Lloyds Bank means that we can continue to support our business, working towards delivery of our long-term strategy.”

The loan has also enabled the business to continue with the development of its new state-of-the-art brewery, beer hall and office site at Everards Meadows in Enderby, Leicestershire. The building project, which was originally due to be completed this autumn, has now been delayed until 2021 as a result of the pandemic.

Chris Pennick, relationship manager at Lloyds Bank said: “We’ve been banking partner to Everards for more than a decade and know it to be a very well led, innovative and robust business, with ambitious future growth plans. But of course, pubs have been one of the industry’s worst hit by the coronavirus closures.

“We’re committed to supporting businesses like Everards as they navigate these challenging times.”

May 15, 2020

Lake District inn sold for the first time in over 50 years

The 10-bedroom inn offers en suite accommodation, breakfast room and lounge for guests to enjoy, along with a public bar and restaurant for around 70 patrons. The property also offers an attractive beer garden with views over the rolling hills and a substantial on-site car park for up to 30 vehicles.

The Fish Inn is recognised for its location in one of the area’s most beautiful valleys, a short walk from both Buttermere and Crummock Water, at the foot of Honister Pass, with some of noted author and local explorer Alfred Wainwright OBE’s most famous walks right on its doorstep. It also features heavily in the local legend of ‘The Maid of Buttermere’, which tells of Mary Robinson, the famously beautiful daughter of the 18th century landlord, who was married to a local man illegally posing as nobleman ‘Colonel Hope’. The marriage was widely reported, resulting in his fraud being exposed and the false Colonel was tried and hanged, leaving Mary heartbroken until she was happily remarried to a local farmer.

The Fish Inn has been owned and operated by the current owners, Jean and John Richardson since 1968, and they sought a sale in order to pursue a well-deserved retirement.

The business has been purchased by Mike and Abi Martin, established hoteliers who also own and operate the Allerdale Court Hotel in nearby Cockermouth, which they plan to continue trading alongside The Fish Inn. They comment, “We are delighted to be part of this wonderful community and look forward to working in such a spectacular part of the Lake District.”

Alistair Greenhalgh, director at Christie & Co, handled the sale and comments, “We’re pleased to have helped Jean and John achieve their retirement, and are delighted to have found local operators who will continue their legacy. We wish Mike and Abi every success with their new venture, which will undoubtedly make a fine addition to their growing portfolio of hotels. Hotels within the Lake District continue to prove desirable as and when they come to the market, and The Fish Inn was no exception, with multiple expressions of interest from potential purchasers.”

The Fish Inn was sold on a freehold basis off an asking price of £1,350,000.

May 13, 2020

North Yorkshire restaurant aims to bounce back with Lloyds Bank support


A family-run Harrogate restaurant that has turned to making takeaway deliveries to survive the COVID-19 pandemic has secured a ‘bounce back’ loan from Lloyds Bank to boost its recovery hopes.

William & Victoria, a mainstay of the North Yorkshire town’s dining scene for over 30 years, is borrowing £50,000 via the government’s Bounce Back Loan Scheme (BBLS) and has also agreed six-month capital repayment holidays on other loans with the bank.

The restaurant and wine bar, which is run by husband and wife team David and Jo Straker, has been closed since March when Boris Johnson announced Britain’s lockdown, forcing the couple to furlough 26 employees.

In an effort to keep the restaurant trading, David and Jo began offering takeaway deliveries of a selection of its most popular dishes. But while the new service has been successful, weekly sales are only about 20% of those in a typical week before COVID-19.

Jo said: “This has been the most stressful time. Like all restaurants, lockdown made it impossible for us to operate so we had to close our doors. We had the idea of offering a takeaway service, which has proved really successful, but it can’t replace the income we’ve lost from being shut.

“The restaurant has been in the family for over 30 years but coronavirus is posing the biggest threat to our future we’ve known. We’re grateful to have Lloyds Bank on our side. The team helped us through the application process and the funding arrived within 24 hours, so we were able to breathe a huge sigh of relief.

“We’re hopeful it will see us through to the time when restaurants can reopen.”

Lee Rycraft, relationship director at Lloyds Bank, said: “David, Jo and their team have been with us since 2013, when we provided the support for them to buy the building that houses William & Victoria and further funding to refurbish two years later.

“Being one of Harrogate’s most popular restaurants, it’s a great example of the type of business BBLS exists to support during the coronavirus pandemic. We’re confident David and Jo will be serving the community for many years to come.”

May 11, 2020

4 in 10 pubs not confident of surviving a June lockdown

From a survey of over 500 pub owners undertaken by the Forum of Private Business (FPB), nearly 4 out of every 10 report that they are less than confident of surviving a June lockdown.

The survey of 560 pubs carried out on behalf of the FPB in the last two weeks of April indicates that less than 1 in 3 are at all confident of opening their doors again if the pub lockdown rules remain in place until the end of the year.

Despite the difficulties being faced by the pub sector, less than 20% report that they have so far been forced to make any redundancies, albeit that 86% are no longer paying full salaries.

Whilst only 1 in 5 have felt the need to apply for a Coronavirus Loan under the CBILS scheme, 2 out of 5 are still awaiting receipt of the £25,000 Retail, Hospitality and Leisure Fund payment.

Of those applying for a loan though less than 4% had been successful at the time of the survey.

Support from the PubCo’s remains disappointingly variable. Of the 560 respondents, more than 2/3rds were tied pub tenants. Yet more than 40% reported that they were still being asked to pay either partial or full rental despite being closed.

Commenting from the Forum of Private Business, managing director Ian Cass said, ‘95% of the respondents indicated that their, and their families’, stress levels have increased as a result of the present situation. The pub sector sits at the heart of our communities and the prospect of more than a third of them disappearing if the lockdown becomes anything like prolonged threatens an enormous impact. Much of the potential for survival lies in the hands of the PubCo’s, and whilst congratulating those who have deferred or cancelled rental payments, we would again call upon those who haven’t, to do so without delay.’

April 29, 2020

Pub group remains at the heart of communities with bank support

A local independent pub group has secured a £250,000 loan through the Coronavirus Business Interruption Loan Scheme (CBILS) from Lloyds Bank to help it to support its staff and suppliers during the COVID-19 lockdown.

Regency Corporation runs a number of local pubs along the Sussex Coast, including the Crown & Anchor in Shoreham. The business turned to Lloyds Bank to help secure its future, after its pubs were forced to shut amid the COVID-19 lockdown.

Due to the closure of its sites the company, which was started ten years ago, has had to furlough its 150-strong team of employees.

Regency Corporation has seen significant growth, specifically during 2019, when it successfully doubled its turnover and added a number of new sites to its portfolio. Its pubs are typically located in small towns and each pub is run independently and tailored to the local community it resides within.

The loan from Lloyds Bank will boost cashflow, meaning the business can pay its suppliers and its staff until its furlough grant is received from the government.

Matt Short, owner of Regency Corporation, said: “We were in growth mode and looking to increase our portfolio again this year. Now everything is on hold.

“During this difficult time, we want to make sure we look after both our staff and our suppliers. We use a lot of local suppliers, small brewers and artisan food producers that need to be paid.

“The support from Lloyds Bank has been great. It means we can pay our suppliers and pay staff wages whilst we wait for the furlough grant.

“Our Lloyds Bank relationship manager has been excellent – always available and willing to spare the time for us, despite being very busy himself. He talked us through several different options, and we agreed that CBILs was the right solution for us at this time. It was a very simple process and we had the money within a fortnight.

“Our pubs are typically at the heart of their communities. We have a lot of vulnerable people that use our sites. Some of these people don’t have families and are stuck at home. We’re mindful of our role in the community and want to support them. So, we’ve been checking in on customers and going to get them food if they need it. We have also allowed a few local street food vendors to use the kitchens in the pubs so that they can run delivery services.

Colin Grant, relationship manager at Lloyds Bank, said: “Matt and the team at Regency Corporation have grown the business over ten years. The business was going great guns and experiencing impressive growth pre the COVID-19 lockdown.

“We want to support businesses like Regency Corporation through the crisis and enable them to pursue growth once again in the months and years ahead.”

April 29, 2020

A great British tipple: UK winery expands service during coronavirus crisis

A South Staffordshire-based wine producer and retailer has been able to expand its production and has diversified its operations during the coronavirus shutdown, after securing support from Lloyds Bank.

The Halfpenny Green Wine Estate faced difficulties on both the agricultural and retail sides of its business due to the COVID-19 outbreak. Alongside adjusting to the forced closure of its on-site restaurant and tearoom, the business needed to respond to a surge in demand for its award-winning wines.

The business, which produces around 60,000 bottles of its own-label wine each year, also carries out contract winemaking and bottling for more than 50 vineyards across England and Wales.

To meet its obligations, owner Clive Vickers quickly realised that he would need to buy more bottles in order to get wine currently held in tanks from last year’s harvest into bottles. Clive contacted Lloyds Bank for support and secured a £180,000 funding package that included a capital loan repayment holiday for the next six months. This has enabled the company to maintain wine production and on-site bottling operations and manage an uplift in demand from customers for its award-winning wines, whilst also being able to meet its own operational overheads and staff costs.

While the business has had to furlough 45 of its 60 employees, who normally help to run its shop, restaurant and café, Clive has diversified the business’ retail operations to help counter some of the challenges posed by the lockdown.

Customers can book 20-minute individual personalised shopping experience with a member of staff to help with their wine selection – all while maintaining appropriate social distancing. With current high levels of demand, customers can also place orders via social media for collection.

The business has also launched a home-made food and wine delivery service for local residents and click & collect.

The Halfpenny Green Wine Estate farms almost 30 acres of south-facing vineyards near Bobbington in South Staffordshire. The wine is sold in the business’ on-site shop and is also stocked in other farm shops and delis across the region.

Clive Vickers, director and owner of the Halfpenny Green Wine Estate said: “In spite of the chaos that COVID-19 has brought to our business, we’ve seen a surge in demand for our wine. Above all, we still needed to maintain the agricultural side of our business, while adapting our retail arm to make the best of this unprecedented situation.

“We’re just a small rural business, but Lloyds Bank stepped in straight away to help us out. Without this funding, we simply wouldn’t have enough cash to buy in the volume of wine bottles we need to keep up with orders.

“We’re working flat out to make sure all our customers are looked after and our employees have jobs to return to at the end of the pandemic, so we’re very grateful for the speed and professionalism of the team at Lloyds Bank.”

Di Preece, relationship manager for Lloyds Bank said: “Halfpenny Green Wine Estate is one of largest vineyards in the UK and has a legion of loyal customers that enjoy its award-winning wines. The business needed to respond and adapt quickly to the COVID-19 outbreak, in order to ensure that its key wine production services remained operational and to help offset the temporary closure of the restaurant and tearoom.

“We’re committed to supporting land-based businesses and are working by their side to help them tackle the effects of COVID-19 by providing quick access to funding and capital repayment holiday options.”

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