Tag: Bank of Scotland

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.”

Garden centre stays in bloom through coronavirus crisis

A local garden centre and tearoom is brightening up lockdown for its customers by offering a delivery service during the Coronavirus crisis, thanks to CBILS support from Bank of Scotland.

New Hopetoun Gardens in Broxburn was forced to close its doors to the public and furlough 28 of its 36 staff following the government’s announcement of a UK-wide lockdown.

The centre features 18 individually themed gardens and offers the largest range of plants for sale in Scotland, a tearoom and an award-winning gift shop.

April and May are the business’ busiest months with at least 10,000 people visiting each month to buy gardening essentials including potted plants, shrubs and pots.

Due to the current crisis, restrictions placed on the general public to avoid non-essential travel and purchases means the business can no longer rely on its usual income from customer visits.

In order to continue paying suppliers, provide care for the plants and deliver orders to customers during this unprecedented time, the business approached Bank of Scotland for support.

Within two weeks, New Hopetoun Gardens received a £195,000 CBIL funding package to assist with operations and an additional £110,000 CBIL earmarked for the end of the year should the lockdown continue beyond May.

Morag Macrae, joint owner of Hopetoun Gardens, said: “This should be our busiest time of year, but people simply aren’t allowed to visit us. To overcome this challenge, we’re focusing on home deliveries and currently send 15 orders a day to customers across Edinburgh.

“When the lockdown was announced we went through a lot of scenario planning. The deliveries do bring in a small amount of income, but we knew we’d need further support to pay our suppliers. We have a long-standing relationship with Bank of Scotland and thanks to the funding, we’re able to keep seven members of staff on board to deliver the plants and take care of the stock we still have.

“The support also gives us the flexibility required to make it through the quieter winter months. I hope our deliveries will continue to provide a bit of solace for our customers and brighten up what is a difficult time for all.”

Stuart McNaughton, relationship manager at Bank of Scotland, said: “With the general public unable to leave their homes unless absolutely necessary, a lot of businesses that rely on customer footfall are experiencing large decreases in income.

“For some however, there are alternatives. New Hopetoun Gardens is a great example of a business that is adapting and working to safely deliver plants to their customers.

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

March sees sharp fall in Scottish business confidence

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

  • Overall confidence for firms in Scotland fell 22 points in the past month to -7%
  • Firms’ confidence in their own business prospects was -4%, compared with 14% in February
  • Research undertaken between 2nd and 16th March shows a sharper fall in confidence nationally during second week of the survey at -3%, among the lowest figures seen since the financial crisis

Business confidence in Scotland fell 22 points during March to -7%, according to the latest Business Barometer from Bank of Scotland Commercial Banking.

The research, taken between the 2nd and 16th March, showed that companies in the region had lower confidence in their business prospects at -4%. When taken alongside their views of the economy overall, this gives an overall confidence of -7%.

Across the UK, overall business confidence fell by 17 percentage points to 6% in March, the lowest level since October 2019.

However, the report showed that nationally, for the second week of the survey, a much sharper fall in overall confidence was recorded at -3%. It matches the lowest dip seen by the barometer since December 2011 and is otherwise the lowest dip since March 2009 during the global financial crisis.

Responding specifically to the impact of the Coronavirus, 66% of Scotland businesses stated that they had already been affected or expected to be impacted, ahead of Boris Johnson’s initial call for the public to stay at home on March 16th. The data illustrates the impact that the outbreak was having on business confidence before many initiatives launched by the Government to help combat the virus were announced.

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

Fraser Sime, regional director for Scotland at Bank of Scotland, said: “It’s impossible to accurately predict how COVID-19 will impact the Scottish economy, so it’s not surprising to see the confidence of Scottish businesses taking a dip as the pandemic evolves.

“The First Minister has called for a partnership to get through this period where the public sector, trade unions, businesses and third sector organisations work together to support Scotland’s workforce. We’re also working by the side of businesses and the government to help firms adapt and adjust as we navigate through this unprecedented period.

“At Bank of Scotland, we’ve committed to lend up to £18bn to businesses this year and have set aside £2bn of arrangement fee free finance to help those directly impacted by COVID-19. From tourism and hospitality to manufacturing, this support is available now. And we will continue to guide and help businesses across all sectors through any interruptions they may face.”

Businesses in the North East had the highest confidence at 23%, ahead of the South West at 16%, and London at 12%.

Those in the South East were the least confident, with an overall confidence of -10%, 16 points below the national average.

Sector overview

In March, overall business confidence fell across all four sectors surveyed. Confidence in the retail sector saw the sharpest decline, falling 21 percentage points to 9%. The manufacturing sector also saw a big decline from 31% to 11%, services was down 18 points to 1%, while the construction sector fell by 15 points to 14%.

Paul Gordon, Managing Director for SME and Mid Corporates, Lloyds Bank Commercial Banking, said: “There is now little doubt that businesses across the board are feeling the impact of COVID-19. 

“Many businesses have already had to pause their work and others are trying to adapt to new ways of working.

While all sectors have displayed a real dip in confidence, it is important that businesses take the support that is available to them to help them through this unprecedented and uncertain time. We remain committed to supporting our customers in the weeks and months ahead in any way we can.”

Hann-Ju Ho, Senior Economist, Lloyds Bank Commercial Banking, said: “The results in March demonstrate the impact of the shutdown of large swathes of the economy to combat the pandemic even in advance of the Government’s stringent measures announced in recent days.

“Sentiment has returned to historic low levels after improving in recent months. We will continue to monitor what businesses are telling us, and hope that they can take steps to minimise the impact of current economic downturn.”

Rock bottom: Business confidence takes a battering

Bank of Scotland’s Business Barometer for July 2019 shows:

  • Overall confidence for firms in Scotland fell 17 points in the past month to zero per cent
  • Firms’ confidence in their own business prospects was six per cent, compared with 32 per cent in June

Continue reading Rock bottom: Business confidence takes a battering

Brexit, what Brexit?: Scottish business confidence continues to grow, says Bank of Scotland

Bank of Scotland’s Business Barometer for February 2019 shows:

  • Overall confidence for firms in Scotland rose four points in the past month to five per cent
  • Firms’ confidence in their own business prospects was 17 per cent, compared with three per cent in January

Continue reading Brexit, what Brexit?: Scottish business confidence continues to grow, says Bank of Scotland