DRIVING GROWTH WITH FAST FUNDING PACKAGE - Santander
DRIVING GROWTH WITH FAST FUNDING PACKAGE Colin Aspinall, Finance Director of coach operator Holmeswood Coaches, has plenty of experience dealing with the major banks, but for him, Santander’s agile approach in expanding the business made the bank stand out from the crowd. Finance Director Colin Aspinall is part of the third generation to run coach operator Holmeswood Coaches, his family business. His grandfather had several commercial interests before buying a coach in 1947 and focusing on transport as his primary business. Thanks in part to an aggressive expansion drive during the 1990s, today the business turns over more than £20 million and operates a fleet of 120 vehicles from six depots across the North-West of England. It has also diversified, incorporating coach sales as well as touring services.
“The Holmeswood side has sales of about £11 million and that nearly doubles with what our coach sales operation, Base Coach Sales, brings in to the business. Since a new coach can cost anything up to a third of a million pounds, you don’t have to do a lot of selling to turn over a lot of money.” Asset finance is important to the business, with facilities of about £10 million in use, with Santander being one of the most significant finance partners. Santander also deals with the business’ invoice finance facility, worth £1.25 million, and is in talks with Holmeswood about taking over day-to-day banking too.
The scope of the business Financing a new purchase “We have a portfolio of work; anything from school contracts through to European touring with very nice, posh buses,” explains Colin. “We do a whole spread of things such as taking kids to Alton Towers or transporting people going on cruise holidays. There’s also a large fleet of wheelchair-accessible vehicles, for those with limited mobility who want to go on a holiday or, as happened recently with the Para-Olympics, teams of wheelchair athletes going to sporting events.
At the end of 2012, the Holmeswood management team saw an opportunity to expand the business with a new depot which could add more than £1 million of additional sales to the business’ annual turnover. In the post-credit crunch environment, there were no guarantees that finance would be available for the purchase, particularly not at short notice. Ian Bateson, Holmeswood’s Relationship Director at Santander, was alerted to the purchase on Christmas Eve. Despite it being the festive season, with most businesses outside of retail taking a break, Ian was keen to work on the deal instead of putting it off until the New Year and potentially allowing it to slip. He admits this meant meeting the team and swapping phone calls at all hours.
Simple Personal Fair What a bank should be
CASE STUDY
“They’re fantastic people and they have a strong attitude when it comes to business. They will go to the ends of the earth to make the business succeed.” Ian Bateson, Relationship Director, Santander
Santander Relationship Directors encourage customers to know they can rely on the bank – it’s a good feeling and unusual in the modern world. Colin Aspinall, Finance Director, Holmeswood Coaches
Beyond nine to five “It’s a nice feeling when you’re in the middle of a purchase, being able to phone someone like Ian Bateson and bouncing a few ideas off him; you get a fair opinion,” says Colin. “We sat down with him between Christmas and New Year, started talking about the purchase and the conversation gave us sufficient assurance of the bank’s appetite to see it through.” Santander did see it through, replacing the business’ existing £200,000 loan facility with a beefed-up £350,000 loan, enabling the deal to be completed. Colin continues, “When we cracked on and got the deal done we knew Santander would support us. Santander Relationship Directors encourage customers to rely on the bank – it’s a good feeling and unusual in the modern world.”
For Colin, this is a considerable bonus: “When I was younger we expanded the business quite aggressively and credit was something you didn’t have to worry about. In today’s environment, Santander stands out from the crowd. If they feel they have found the right people with the right plan, then they will offer their support.”
“In today’s environment, Santander stands out from the crowd. If they feel they have found the right people with the right plan, then they will offer their support.” Colin Aspinall, Finance Director, Holmeswood Coaches All lending is subject to status.
The secret of their success For his part, Ian says he is impressed with the Holmeswood team’s ability to mix a laid-back “fun and quirky” approach to business with a razor-sharp acumen for delivering growth, while keeping well on top of the business’ financial reporting requirements. “The management information comes through regular as clockwork and they are always available to talk through the business plan,” he says. “They’re a completely open book and it’s because of this that they’ve become a major regional operator for the North-West.”
In brief Sector: Transport Turnover: £20 million Holmeswood Coaches is a medium sized coach operator covering the North-West of England. It has been providing coach hire and transport services for over 60 years. When the business saw the opportunity to expand the business, potentially adding more than £1 million to sales, Santander provided the funding. The new funding complements an existing package of facilities, incorporating asset finance, a revolving term loan, invoice finance and trade finance. Holmeswood was able to open a new operating centre, boosting the business and protecting jobs. Finance Director Colin Aspinall is sceptical about banking partners and has experienced many during his tenure at Holmeswood. He says Santander’s willingness to lend speed of response and its effort in getting to know its clients sets it apart from the rest.
Looking ahead Ian estimates that Santander’s financing of Holmeswood has provided a platform to grow the business by around 15 per cent, not to mention protecting the jobs of workers at the newly acquired depot. He adds that Santander will stand behind Holmeswood’s growth plans and consider any request for new finance.
Solutions delivered: Asset Finance Invoice Finance Trade Finance Revolving Term Loan
Santander Corporate & Commercial is a brand name of Santander UK plc, Abbey National Treasury Services plc (which also uses the brand name Santander Global Banking and Markets) and Santander Asset Finance plc, all (with the exception of Santander Asset Finance plc) authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Our Financial Services Register numbers are 106054 and 146003 respectively. You can check this on the Financial Services Register by visiting the FCA’s website www.fca.org.uk/register or by contacting the FCA on 0800 111 6768. Credit cards are provided by Santander UK plc. In Jersey, Santander UK plc is regulated by the Jersey Financial Services Commission to carry on deposit-taking business under the Banking Business (Jersey) Law 1991. Registered office: 2 Triton Square, Regent’s Place, London NW1 3AN. Company numbers: 2294747, 2338548 and 1533123 respectively. Registered in England. Santander and the flame logo are registered trademarks. Santander UK plc is a participant in the Jersey Bank Depositors Compensation Scheme. The Scheme offers protection for eligible deposits of up to £50,000. The maximum total amount of compensation is capped at £100,000,000 in any 5 year period. Full details of the Scheme and banking groups covered are available on the States of Jersey website (www.gov.je/dcs) or on request.
“The Holmeswood side has sales of about £11 million and that nearly doubles with what our coach sales operation, Base Coach Sales, brings in to the business. Since a new coach can cost anything up to a third of a million pounds, you don’t have to do a lot of selling to turn over a lot of money.” Asset finance is important to the business, with facilities of about £10 million in use, with Santander being one of the most significant finance partners. Santander also deals with the business’ invoice finance facility, worth £1.25 million, and is in talks with Holmeswood about taking over day-to-day banking too.
The scope of the business Financing a new purchase “We have a portfolio of work; anything from school contracts through to European touring with very nice, posh buses,” explains Colin. “We do a whole spread of things such as taking kids to Alton Towers or transporting people going on cruise holidays. There’s also a large fleet of wheelchair-accessible vehicles, for those with limited mobility who want to go on a holiday or, as happened recently with the Para-Olympics, teams of wheelchair athletes going to sporting events.
At the end of 2012, the Holmeswood management team saw an opportunity to expand the business with a new depot which could add more than £1 million of additional sales to the business’ annual turnover. In the post-credit crunch environment, there were no guarantees that finance would be available for the purchase, particularly not at short notice. Ian Bateson, Holmeswood’s Relationship Director at Santander, was alerted to the purchase on Christmas Eve. Despite it being the festive season, with most businesses outside of retail taking a break, Ian was keen to work on the deal instead of putting it off until the New Year and potentially allowing it to slip. He admits this meant meeting the team and swapping phone calls at all hours.
Simple Personal Fair What a bank should be
CASE STUDY
“They’re fantastic people and they have a strong attitude when it comes to business. They will go to the ends of the earth to make the business succeed.” Ian Bateson, Relationship Director, Santander
Santander Relationship Directors encourage customers to know they can rely on the bank – it’s a good feeling and unusual in the modern world. Colin Aspinall, Finance Director, Holmeswood Coaches
Beyond nine to five “It’s a nice feeling when you’re in the middle of a purchase, being able to phone someone like Ian Bateson and bouncing a few ideas off him; you get a fair opinion,” says Colin. “We sat down with him between Christmas and New Year, started talking about the purchase and the conversation gave us sufficient assurance of the bank’s appetite to see it through.” Santander did see it through, replacing the business’ existing £200,000 loan facility with a beefed-up £350,000 loan, enabling the deal to be completed. Colin continues, “When we cracked on and got the deal done we knew Santander would support us. Santander Relationship Directors encourage customers to rely on the bank – it’s a good feeling and unusual in the modern world.”
For Colin, this is a considerable bonus: “When I was younger we expanded the business quite aggressively and credit was something you didn’t have to worry about. In today’s environment, Santander stands out from the crowd. If they feel they have found the right people with the right plan, then they will offer their support.”
“In today’s environment, Santander stands out from the crowd. If they feel they have found the right people with the right plan, then they will offer their support.” Colin Aspinall, Finance Director, Holmeswood Coaches All lending is subject to status.
The secret of their success For his part, Ian says he is impressed with the Holmeswood team’s ability to mix a laid-back “fun and quirky” approach to business with a razor-sharp acumen for delivering growth, while keeping well on top of the business’ financial reporting requirements. “The management information comes through regular as clockwork and they are always available to talk through the business plan,” he says. “They’re a completely open book and it’s because of this that they’ve become a major regional operator for the North-West.”
In brief Sector: Transport Turnover: £20 million Holmeswood Coaches is a medium sized coach operator covering the North-West of England. It has been providing coach hire and transport services for over 60 years. When the business saw the opportunity to expand the business, potentially adding more than £1 million to sales, Santander provided the funding. The new funding complements an existing package of facilities, incorporating asset finance, a revolving term loan, invoice finance and trade finance. Holmeswood was able to open a new operating centre, boosting the business and protecting jobs. Finance Director Colin Aspinall is sceptical about banking partners and has experienced many during his tenure at Holmeswood. He says Santander’s willingness to lend speed of response and its effort in getting to know its clients sets it apart from the rest.
Looking ahead Ian estimates that Santander’s financing of Holmeswood has provided a platform to grow the business by around 15 per cent, not to mention protecting the jobs of workers at the newly acquired depot. He adds that Santander will stand behind Holmeswood’s growth plans and consider any request for new finance.
Solutions delivered: Asset Finance Invoice Finance Trade Finance Revolving Term Loan
Santander Corporate & Commercial is a brand name of Santander UK plc, Abbey National Treasury Services plc (which also uses the brand name Santander Global Banking and Markets) and Santander Asset Finance plc, all (with the exception of Santander Asset Finance plc) authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Our Financial Services Register numbers are 106054 and 146003 respectively. You can check this on the Financial Services Register by visiting the FCA’s website www.fca.org.uk/register or by contacting the FCA on 0800 111 6768. Credit cards are provided by Santander UK plc. In Jersey, Santander UK plc is regulated by the Jersey Financial Services Commission to carry on deposit-taking business under the Banking Business (Jersey) Law 1991. Registered office: 2 Triton Square, Regent’s Place, London NW1 3AN. Company numbers: 2294747, 2338548 and 1533123 respectively. Registered in England. Santander and the flame logo are registered trademarks. Santander UK plc is a participant in the Jersey Bank Depositors Compensation Scheme. The Scheme offers protection for eligible deposits of up to £50,000. The maximum total amount of compensation is capped at £100,000,000 in any 5 year period. Full details of the Scheme and banking groups covered are available on the States of Jersey website (www.gov.je/dcs) or on request.
