Tag: Bank of Scotland

Scottish business confidence returns to pre-pandemic levels – but remains in negative territory

Bank of Scotland’s Business Barometer for March 2021 shows:

  • Overall confidence of firms in Scotland rose 15 points in the past month to -2%
  • Optimism grew in all UK nations and regions for a second consecutive month after roadmap for ending lockdown restrictions was laid out
  • Overall UK business confidence surged to its highest level since February 2020

Business confidence in Scotland rose 15 points during March to -2%, the highest reading since March 2020, according to the latest Business Barometer from Bank of Scotland Commercial Banking.

The data has been released just a week after the one-year anniversary of the first COVID-19 lockdown.

Companies reported higher confidence in their own business prospects month-on-month, up 6 points at -5%.  When taken alongside their optimism in the economy, which was up 24 points to 2%, the increases give a headline confidence reading of -2%. Despite the increase, Scotland was the only area of the UK to give a net pessimistic reading during March.

The Business Barometer questions 1,200 businesses monthly and provides early signals about UK economic trends both regionally and nationwide.

When it comes to jobs, a net balance of 20% of firms in Scotland expect to reduce staff levels over the next year, up 16 points on last month.

The UK picture

Overall UK business confidence rose for a second consecutive month in March. Firms’ confidence increased by 13 points to 15%, the highest reading since February 2020, before coronavirus was confirmed as a pandemic by the World Health Organisation. 

UK firms’ economic optimism also increased by 15 points to 17%, while confidence in their own business prospects jumped 10 points to 12%.

In fact, every UK region and nation reported an increase in overall confidence during March, with most reporting a double-digit rise month-on-month. The North East (1% to 26%), West Midlands (3% to 27%) and East of England (-8% to 12%) reported the largest increases.

Fraser Sime, regional director for Bank of Scotland Commercial Banking, said: “Scottish business confidence has increased for a second consecutive month and is the highest since March 2020. Despite it remaining in negative territory, there is hope that the end of a challenging year is now in sight. 

“We’ll remain by the side of businesses in Scotland as restrictions are eased in the coming weeks and months, helping them on the road to recovery and as they seek new growth opportunities.”

Paul Gordon, Managing Director for SME and Mid Corporates, Lloyds Bank Commercial Banking, said: “We have completed a full circle since lockdown began in March 2020 and it is uplifting to see businesses portraying confidence for the months ahead. The regions have reported a tremendous result in confidence, especially England which is positive across the board.

“In the sectors, the uptick in confidence for manufacturing is driven by strong trading prospects, while in retail, there is an anticipation that pent-up demand will drive consumption when restrictions are lifted. The months ahead will play a pivotal role in charting the course for the UK’s recovery and we remain by the side of businesses as they go along on this journey.”

Hann-Ju Ho, Senior Economist, Lloyds Bank Commercial Banking, said: “It’s been a year since the first lockdown and the surge in confidence this month tells us firms are increasingly confident about economic recovery.

“The broadly positive outlook is driven by steady vaccine deployment, the roadmap out of lockdown and the extension of government support measures. It will be interesting to see whether the momentum for stronger business optimism is sustained in the months ahead.”

Garden centre rooting for reopening

New Hopetoun Gardens, a garden centre in Broxburn, was among many retailers who were forced to suddenly close their doors when the pandemic hit in March last year.

The garden centre, which offers Scotland’s largest range of plants for sale, relied heavily on customer visits and face-to-face trading so the forced closure hit the business hard. With an average of 10,000 customers a month during a normal April and May, it missed out on the busiest trading months of the year.

Profits dropped considerably and 28 of its 36 staff were furloughed.

In April 2020, New Hopetoun Gardens approached Bank of Scotland for support and received a £195,000 Coronavirus Business Interruption Loan Scheme (CBILS) funding package. This allowed the business to ensure it had sufficient cashflow, pay suppliers, care for the plants, and provide reassurance to its staff that operations will continue once restrictions have eased.

New Hopetoun Gardens introduced home delivery services for its customers and launched a new website six weeks ago to facilitate a click and collect service.

These measures have helped over the past few months but the decision after Christmas to give ‘non-essential’ status to the centre has hampered business prospects of opening before its busiest trading period in early spring. 

Morag Macrae, joint owner of New Hopetoun Gardens, said: “The past year has been really challenging for us as a business. Most of our trading is done face-to-face and while we’re incredibly grateful to our fantastic customers who have used our click and collect and delivery service, we saw our revenue drop considerably.

“The change that saw us considered as a “non-essential” shop was quite a blow as we hoped to be open to take full benefit of our busy spring trading period.

“Thankfully, the support from Bank of Scotland has been a massive boost. It has allowed us to keep our operations running and keep us out of our overdraft which has been a huge relief.

“While times are still challenging, business has picked up considerably in March and we’re hoping we will be able to re-open soon to make the most out of our key trading period, when it is safe to do so.”

Confidence drops in Scotland as lockdown restrictions continue

Bank of Scotland’s Business Barometer for January 2021 shows:

  • Overall confidence of firms in Scotland fell 23 points in the past month to -32%
  • 52% of firms are confident the Covid-19 vaccination roll-out will boost trading prospects in 2021
  • Optimism falls in seven of 11 UK regions and nations as firms deal with latest lockdown restrictions

Business confidence in Scotland fell 23 points during January to -32%, according to the latest Business Barometer from Bank of Scotland Commercial Banking.

Companies in Scotland reported lower confidence in their own business prospects month-on-month, down 20 points to -27%.  When taken alongside their views of the economy, down 25 points to -37%, this gives a headline confidence reading of -32%.

The Business Barometer questions 1,200 businesses monthly and provides early signals about UK economic trends both regionally and nationwide.

The majority (65%) of firms said current Covid-19 restrictions had caused a fall in turnover but they expected the effects of the vaccine programme to boost trading prospects for 2021, with 52% saying the rollout had made them feel more confident about the year ahead. However, only 11% expect trading levels to return to pre-pandemic levels in the next twelve months.

When it comes to jobs, a net balance of 28% of businesses in Scotland expect to reduce staff levels over the next year, down five points on last month.

At UK level, overall business confidence dipped in January as the latest lockdown restrictions came into force, falling by three points to -7%. Firms’ economic optimism dropped dramatically month-on-month, decreasing by 34 points to -10%.

Almost all UK nations and regions saw a month-on-month dip in confidence during January, with the biggest falls after Scotland (-32% vs -9% in December) being reported in Wales (-20% vs -1% in December) and the South West (-8% vs 5% in December).

However, firms reported a month-on-month increase in confidence in London (up five percentage points to 3%), the South East (up seven percentage points to -4%) and North West (up eight percentage points to -5%). Yorkshire business confidence remained steady month-on-month at -4%.

Fraser Sime, regional director for Scotland at Bank of Scotland Commercial Banking, said: “This latest drop in confidence has appeared against a backdrop of tighter restrictions being reintroduced in Scotland. However, despite this dip, fewer firms report they are planning on making redundancies in the year ahead, the second consecutive month this has fallen.

“We know Scottish businesses have been resilient since the pandemic began and the vaccination roll-out is boosting firms’ optimism about the coming months. We’ll be by the side of businesses to help them navigate both the short-term challenges and long-term opportunities ahead.” 

In the industry sectors confidence remained above pre-vaccine levels (chart 4). While some sectors reported declines, manufacturing slipped by nine points to 9%, services fell by four points to -9% and retail by five points to 6%. Confidence levels in the construction sector improved for a second month, rising four points to -1%.

Paul Gordon, Managing Director for SME and Mid Corporates, Lloyds Bank Commercial Banking, said: “It has not been an easy start to 2021, but nonetheless businesses continue to persevere and remain resilient in the face of uncertainty and change – the construction sector’s confidence improving for a second month and more broadly, industry and the majority of the regional confidence sitting above pre-vaccine levels.

“While the road ahead will be challenging, we hope the news of the vaccine rollout progress will positively impact regional and sector confidence in the coming months.”

Hann-Ju Ho, Senior Economist, Lloyds Bank Commercial Banking, said: “It has been a challenging start to the New Year for UK businesses adapting to a third national lockdown alongside the new EU trade arrangement taking effect.

“Nevertheless, while confidence remains below average, it is encouraging that business sentiment is still the second highest since the low of May 2020. Overall, the vaccine rollout programme has lifted confidence and that will hopefully buoy business optimism in the coming months.”

Scottish business confidence sees sharp rise after vaccine rollout – but remains negative

Bank of Scotland’s Business Barometer for December 2020 shows:

  • Overall confidence of firms in Scotland rose 29 points in the past month to -9%
  • Companies in three of 12 UK nations and regions return to net optimistic position for the first time since March
  • Report shows biggest month-on-month improvement in UK business confidence in four years after vaccine rollout begins

Business confidence in Scotland increased to its highest point since the pandemic began in March, rising 29 points month-on-month to -9% during December, according to the latest Business Barometer from Bank of Scotland Commercial Banking.

Scottish firms’ optimism towards the economy increased by 38 points month-on-month to -12%, while confidence in their own business prospects rose 20 points to -7%.  Together, this gives a headline confidence reading of -9%.

Businesses’ hiring intentions showed that a net balance of 33% of businesses in Scotland expect to reduce staff levels over the next year, down 10 points on last month.

The Business Barometer questions 1,200 businesses monthly and provides early signals about UK economic trends both regionally and nationwide.

Across the UK, overall confidence saw its largest monthly increase for more than four years in December, following vaccine progression announcements. Confidence climbed by seventeen points to -4% in November to -4%. Economic optimism jumped 23 points to -5%, while firms’ confidence about their trading prospects increased 11 points to -3%.

All 12 UK nations and regions saw a rise in overall confidence during December. The most marked improvements were reported in Scotland (up twenty-nine points to -9%); the South West (up twenty-two points to 5%) and the West Midlands (up twenty-two points to 4%). The North East, South West and West Midlands all moved into net positive territory for the first time since March this year.

The South West recorded highest confidence at 5%, followed by the West Midlands and South West, each at 4%. The North West had the lowest confidence during December at -13%, despite confidence increasing month-on-month by 15 points.

Fraser Sime, regional director for Scotland at Bank of Scotland Commercial Banking, said: “To see an increase in the confidence of Scottish businesses is a step in the right direction as we come to the end of what has been a very difficult year.

“The roll-out of the vaccine should buoy spirits further as it helps to bring light to a Covid-19 exit strategy, but this optimism could falter in coming months with continued uncertainty over lockdown restrictions.

“Whatever the new year brings, we’ll continue to be by the side of businesses across Scotland, as we all work together to support the country’s recovery from the pandemic.”

National overview

In the industry sectors, confidence reached the highest levels seen since the start of the pandemic. Manufacturing reported a strong rebound this month despite looming uncertainty during the survey period about the UK’s new trading arrangements with the EU, surging by twenty-five points, from -25% to 0%.

This was followed by a growth in confidence for construction, which rose by eighteen points to -5%; services, which jumped by sixteen points to -5% and the retail sector which reported an eleven point lift in confidence to -1%. Nevertheless, entering the holiday trading period, confidence in retail, as in other sectors, remains below the long-term average.

Paul Gordon, Managing Director for SME and Mid Corporates, Lloyds Bank Commercial Banking, said: “It has been encouraging to see a clean sweep of regional confidence increases this month.

“Despite the regional restrictions across the UK, it is promising to see regions beginning to report above-average confidence figures. While we can primarily attribute this uptick to the news of the vaccine progress, it has also injected a boost in confidence for the sectors, with manufacturing rebounding strongly and other sectors following suit.

“We know that confidence has been volatile in 2021, it is positive to see this sharp rise in confidence and we hope this continues through to the New Year.”

Hann-Ju Ho, Senior Economist, Lloyds Bank Commercial Banking, said: “The news of the vaccine progress has bolstered this month’s confidence figures, more than offsetting uncertainties around the UK’s new trading relationship with the EU.

“While confidence remains below average and significant challenges lie ahead, it is heartening to conclude a challenging year with a notable improvement in business sentiment and with the positive momentum hopefully continuing into 2021.”

With Saturday’s latest setback, however, it’s clear that we’re far from out the woods yet. 2021 may prove to be every bit as challenging as 2020 has been for UK businesses – Ed.

Reindeer set for stable future despite Christmas shutdown

A family-owned reindeer visitor attraction has secured its future, thanks to a Bounce Back Loan from Bank of Scotland.

The Cairngorm Reindeer Herd looks after more than 150 free-range reindeer that live and roam across the Cairngorm Mountains and on the nearby Glenlivet Estate.

The herd were introduced to the mountains in 1952 by co-founders and husband and wife duo Mikel Utsi and Dr Ethel Lindgren before being taken over by Tilly Smith and her husband Alan in 1989. Since then, a visitor centre, shop and paddock have all been added to create a popular attraction suitable for the public.

Before the outbreak of Covid-19, visitors could meet the reindeer on guided group tours, and the herd would be hired out during the festive period to businesses and attractions across the UK to kick-start Christmas celebrations.

When the restrictions around social distancing and public events were implemented by the Government, the business was forced to rethink its business model.

Thanks to a Bounce Back Loan secured with Bank of Scotland, Cairngorm Reindeer decided to focus on its Adopt a Reindeer programme so that fans of the animals could still support the business.

The £42 annual adoption fee goes towards the upkeep, feeding and veterinary care for the animals. Adopters receive a certificate and photograph of the reindeer, regular updates and once restrictions allow, visits to the herd.

The income from the adoption programme, plus the Bounce Back Loan funding, has enabled the business to continue paying for the feed and care of the herd that would normally be funded through the guided tours and Christmas activity.

Tilly Smith, director of Cairngorm Reindeer Herd, said: “In a normal December, our reindeer would be busy pulling sleighs across the UK and making Christmas magical for local communities. But because we’ve had to put a stop to these visits, a huge part of our income has been lost.

“We’ve managed to keep going and our number one priority will always be to look after our herd. Thanks to the support from Bank of Scotland, we now have the safety net of additional income to help with overheads as we continue to promote our adoption programme which is now in its 30th year.

“The support so far from the public has been overwhelming and we hope people continue to help us by adopting a reindeer while we work towards welcoming everyone back in the future.”

Scott Robertson, relationship manager at Bank of Scotland, said: “Cairngorm Reindeer Herd are a perfect example of the more unusual and seasonal businesses that will be directly impacted by the pandemic. It’s encouraging to see the firm using other revenue streams to diversify and continue trading until normal operations recommence.

“At Bank of Scotland, we’re by the side of business as we all work through this challenging time and learn to adapt to restrictions where we can. We’ve worked with the team at Cairngorm Reindeer Herd for a long time, and I’m looking forward to when we’re able to meet again in person and see the great work they do with the herd.”

Scottish housebuilder shines ray of sunshine on Leith with new Tayworks development

A Scottish housebuilder is transforming a former Edinburgh industrial site into 77 new homes, thanks to a £5.8million funding package from Bank of Scotland.

MNM Developments has started construction on The Tayworks, a new £12m development located in the city’s popular Leith area, on West Bowling Green Street.

The new development consists of 77 one, two, and three-bedroom apartments, with 14 of these already reserved.  Housing association, Places for People, has also acquired 14 of the 77 properties to market as affordable housing. 

The housebuilder is headed up by sibling trio, Marc, Nathan, and Michaela Teague. In addition to The Tayworks, the family-run firm recently completed The Market development in Bonnyrigg and has sites underway at Willowbrae Road in Edinburgh, and Castlemains in Dirleton.

Over the past five years the firm has built over 100 properties across Edinburgh and the Lothians and has developed a reputation in providing a quality build at affordable prices.

Despite the Covid-19 pandemic halting construction of The Tayworks for four months, the firm has managed to adapt its original build plan and is now only five weeks away from its original completion date. It will welcome its first homeowners from October 2021.

Bank of Scotland provided the business with a £5.8million development loan, supporting the firm in the build of the site. The development itself also created around 50 jobs for local sub-contractors.

Marc Teague, managing director at MNM Developments, said: “We were just breaking ground at The Tayworks site when Covid-19 hit. Despite the pause in operations, construction is now back underway, and the response so far has been brilliant. 

“Leith is an increasingly popular area to live and work, and there’s been a great deal of redevelopment in this area in the last decade. It was also named one of the coolest places to live recently by Time Out so we’re confident these properties will sell quickly.

“As a family business, we’ve had a long-standing relationship with Bank of Scotland. The financial support and guidance the bank has provided has been invaluable in bringing The Tayworks to the market, and we look forward to welcoming the new homeowners next year.”

Douglas Spowart, relationship director at Bank of Scotland, said: “The past eight months have been extremely difficult, including for firms in the construction sector. So it’s heartening to see some firms turning these challenges into new opportunities.

“Property prices in Leith are up 5% on last year such is the demand to relocate to this vibrant area of Edinburgh. This is why it’s encouraging to see firms like MNM Developments capitalise on these positive market trends in order to grow, despite this year’s challenges.

“At Bank of Scotland, we’re working by the side of businesses across all sectors to help support them on the road to recovery.”

Scottish business confidence remains low

Bank of Scotland’s Business Barometer for July 2020 shows:

  • Overall confidence of firms in Scotland rose four points in the past month to     -37%
  • Firms’ confidence in their own business prospects was unchanged month-on-month at -33%
  • One in ten (9%) businesses experienced an increase in demand, up four points on June

Business confidence in Scotland rose four points during July to -37%, according to the latest Business Barometer from Bank of Scotland Commercial Banking.

Companies in Scotland reported the same level in confidence in their business prospects month-on-month at -33%.  When taken alongside their views of the economy overall, this gives a headline confidence reading of -37%.

The Business Barometer questions 1,200 businesses monthly and provides early signals about UK economic trends both regionally and nationwide.

The majority of firms continued to see demand negatively affected by coronavirus during July. Almost two thirds (64%) experienced a fall in demand for their products and services, up six points on the month before. However, 9% experienced an increase in demand, up four points on June.

With the Job Retention Scheme beginning to wind down from August, two fifths (41%) of Scottish firms surveyed said they didn’t currently have any furloughed workers.

Of the 55% of businesses reporting disruption to their supply chain during July, 18% expected the situation to improve within three months, while only 2% expected it would take more than 12 months to return to normal levels.

Fraser Sime, regional director for Scotland at Bank of Scotland Commercial Banking, said: “While marginal, the slight increase in confidence we’ve seen this month is a step in the right direction.

“There’s still a long way to go for confidence to fully recover, but the current transition to Phase 3 of lockdown should hopefully continue to boost many firms’ trading prospects.

“Pessimism is waning in many English regions as the hospitality and leisure sectors open their doors once again. With many firms beginning to restart operations here in Scotland this month, August will be telling as to whether the same confidence-inducing effect will take hold here too.”

National overview

At UK level, confidence increased eight points to -22% during July. The North East was the most confident region at -3% followed by the West Midlands (-7%) and the North West          (-15%). Wales and Scotland were the least confident with -31% and -37% respectively.

In July, the retail sector increased 11 points to -12%, manufacturing increased 14 points to -21% and services rose 10 points to -26%. However, construction fell eight points to -22% after last month’s strong increase of 30 percentage points.

Paul Gordon, Managing Director for SME and Mid Corporates, Lloyds Bank Commercial Banking, said: “With only one region reporting a fall in sentiment, we are starting to see sentiment lift for the vast majority of regions across the UK. 

“The easing of lockdown restrictions, including the reopening of the economy and the relaxation of social distancing rules, has resulted in most businesses reporting improvements in demand, from a record-low base. This is key for the summer season, which will allow businesses to continue to open their doors and trade in the weeks and months ahead.”

Hann-Ju Ho, Senior Economist, Lloyds Bank Commercial Banking, said: “While the results suggest the economy is starting to see some improvement, economic confidence still remains in deep negative territory.

“The Government announcement of the slight easing of social distancing measures has now enabled over half of businesses to reach their capacity and resume their usual activities. However, how businesses will continue to respond to the Job Retention Scheme will be key in the coming months.”

Bank support helps plant hire firm through COVID-19 crisis

A Scottish plant hire business is keeping moving during the current crisis after securing support thanks to Bank of Scotland. 

Mulholland Plant Services Ltd in Polbeth, West Calder, has over 600 units of plant equipment and machinery available for hire to civil engineering, housebuilders, local authorities, and industrial contractors across the UK, using its own fleet of lorries and service engineers to provide UK coverage for their customers.

Due to the government’s UK-wide lockdown introduced in March, the business saw 95% of its customers, mainly in the construction sector, stop work immediately though local councils and railway services continued to hire equipment.

As a result of the lockdown, turnover in April fell significantly compared to the same period last year.

The downturn has forced the business to furlough 85% of its employees with the remaining members working to support customers that are still open. This includes staff to deliver machinery, field engineers to support customers remotely, and labour to service and prepare the machines.

In order to pay its suppliers, staff wages and deposits for new plant equipment, Mulholland Plant Services Ltd, approached Bank of Scotland for support. The business secured a loan as part of the government’s Coronavirus Business Interruption Loan Scheme.

George Mulholland, director at Mulholland Plant Services Ltd, said: “The construction sector is a key revenue pillar for us but restrictions imposed by the government meant most of our customers, 95%,  were forced to stop work at very short notice.

“Some of our local authorities and industrial contractor customers are still working throughout this crisis and need our services.

“With Bank of Scotland’s help, we’re able to continue supporting our customers that are currently working through what is a hugely challenging time for everyone.

“The funding will also help ensure we can pay our suppliers and equipment costs when business as usual resumes although it is unlikely to pick up as quickly as where we left in March.”

David Allan, relationship director at Bank of Scotland, said: “Planning a route through this stormy period is a huge hurdle for almost every business in Scotland.

“This is why we’re committed to being by the side of companies like Mulholland Plant Services Ltd to help them adapt and adjust in the short-term and come out of this unprecedented time in a strong position.”

Scottish Firms’ confidence rises but remains near record low

Bank of Scotland’s Business Barometer for May 2020 shows: 

  • Overall confidence for firms in Scotland rose 17 points in the past month to -33%
  • Firms’ confidence in their own business prospects was -26%, compared with -29% in April
  • Growing number of firms experienced an increase in demand for goods and services

Business confidence in Scotland rose 17 points during May to -33%, remaining near record lows, according to the latest Business Barometer from Bank of Scotland Commercial Banking.

Companies in Scotland reported higher confidence in their own business prospects than in April at -26%. When taken alongside their views of the economy overall, this gives a headline confidence reading of -33%.

The Business Barometer questions 1,200 businesses monthly and provides early signals about UK economic trends both regionally and nationwide.

In an illustration of the impact COVID-19 is having on Scotland’s business, the majority of firms continued to see demand negatively affected during May, but with the picture improving slightly since April.

65% experienced a fall in demand for their products and services, down seven points on the month before. Meanwhile, 12% experienced an increase in demand, up on 5% in April.

The number of Scottish firms operating at less than 50% capacity increased 18 points to 43%. A fifth of firms (20%) weren’t operating at all, down from 32% in April.

Of the 75% of businesses reporting disruption to their supply chain during May, 19% expected the situation to improve within three months, while 14% expected it would take more than 12 months to return to normal levels.

Fraser Sime, regional director for Scotland at Bank of Scotland Commercial Banking, said: “Scottish firms have been hit hard by this crisis, but they’re showing resilience in the face of great challenge.

“It’s encouraging to see that some businesses are beginning to reopen as demand creeps back. We’re standing shoulder-to-shoulder with companies from all sectors to help them overcome the challenges presented during this difficult time.”

National overview

Across the UK, business confidence held steady month-on-month, dipping just one point to   -33%. The North East and London both saw confidence rise month-on-month, scoring the joint-highest confidence reading at -20%. The South West recorded lowest confidence at         -51%, compared to -35% the month prior.

From a regional perspective, despite all being in negative sentiment, six of the 12 regions reported a higher confidence in May. The North East was the least negative region at -20%. The South West was the most negative region at -51% followed by the South East at -45%.

In May, the construction sector saw the sharpest decline, falling 24 percentage points to -44%. However, all the three other major sectors saw a modest increase. The retail sector increased eight points to -25%, while manufacturing rose to -27% and services saw a small increase of four points to -18%.

Paul Gordon, Managing Director for SME and Mid Corporates, Lloyds Bank Commercial Banking, said: “While May continued to show the unprecedented impact of the shutdown for businesses across the UK, it is important to see that now half of all regions are climbing back from the lowest levels seen last month.

“As Britain sees further easing of measures in the coming weeks, with more businesses re-opening, it is hoped that this will further improve businesses’ confidence. Government schemes and finance options continue to be made readily available to businesses so that they can be best placed and prepared to open once again in the months ahead.”

Hann-Ju Ho, Senior Economist, Lloyds Bank Commercial Banking, said: “Despite the results partly capturing the period since the Government’s announcement of an initial easing of restrictions, trading conditions remain difficult for most firms.

“Nevertheless, a further relaxation of constraints will enable more businesses to resume their activities.”

CBIL boost helps recycling business support gardeners in lockdown

  • Bank of Scotland supports green waste recycling firm with six-figure CBILS loan
  • Forth Resource Management triples online compost and topsoil delivery sales as more people spend time in their gardens
  • Working capital injection comes as local authority clients stop garden waste collections and close local recycling centres 

An East Lothian recycling business has seen its online sales more than triple and has stepped up its local delivery service with the support of Bank of Scotland. It is believed that the jump in sales is partly as a result COVID-19, with more people spending time at home and in their garden.

Forth Resource Management recycles more than 100,000 tonnes of organic waste for local councils and landscapers across Scotland each year, retailing subsequent product direct to local residents, builders merchants, garden centres and farmers.

With the UK now on lockdown, the business has increased the output of its online retail offer, supported by a six-figure loan from Bank of Scotland as part of the government-backed Coronavirus Business Interruption Loan Scheme.

The funding comes as a number of Forth Resource Management’s key local authority clients have stopped their garden waste collection services and closed their local recycling centres.

While the business has ultimately had to furlough a small number of its employees, the booming online delivery service – alongside the working capital injection from the bank – is expected to stand it in good stead for when normal trading resumes.

Tommy Dale, managing director at Forth Resource Management, said: “Local authority contracts have always been a key revenue pillar within our company but we’re fortunate that the nature of our business means we can adjust our focus and meet growing need elsewhere.

“Gardening and time spent outdoors is offering valuable respite up and down the country so it’s nice to know we’re positively contributing to keeping spirits up.

“The speed at which Bank of Scotland provided the funding has given us a great deal of confidence to trade through this challenging period and line up investment for growth in more certain times.”

Daniel Burns, relationship manager at Bank of Scotland, said: “Plotting a path against current headwinds is a challenge for almost every business at present.

“As such, we’re committed to being by the side of companies like Forth Resource Management – working with government to enable them to adapt their operations for the short-term.”