A Redditch-based scaffolding contractor has secured a funding boost to support its cash flow after building sites across the UK closed due to the coronavirus.
Portway Scaffolding secured £100k from BCRS Business Loans via the Midlands Engine Investment Fund (MEIF) supported by the Coronavirus Business Interruption Loan Scheme (CBILS).
The company, which also has operations in Glasgow, hires and erects scaffolding at construction sites across the UK. With extensive experience in commercial and residential building works, transport infrastructure and demolition, Portway Scaffolding’s clients include Aldi, the Benniman Group and Persimmon Homes.
The coronavirus lockdown meant nearly all of Portway Scaffolding’s contracts were put on hold. This funding boost will help ease the firm’s cash flow and secure the jobs of 32 staff.
Director of Portway Scaffolding, Donald McGrath, said:
“Securing a funding boost at this time was an important step in helping us manage our cash flow during the period of interruption caused by the coronavirus.
“We expect business operations to start returning to normal soon, as lockdown measures are eased further and more construction sites re-open. In the meantime, we are busy reviewing our processes and putting additional measures into place to ensure it is safe for our staff to return to work.
“We have been communicating regularly with our customers and suppliers and envisage that demand for scaffolding will be similar to pre-lockdown levels, as we continue to fulfill pre-existing contracts and work on new construction sites resumes.
Stephen Deakin, Chief Executive of BCRS Business Loans, added:
“We are delighted to have supported Portway Scaffolding with the funding it required at this incredibly challenging time. This is an example of a strong, viable businesses whose growth plans were put on hold due to the unforeseen interruption to trading caused by the coronavirus.
“With such a loyal customer base, a strong pre-existing order book and a very experienced team in place, we know that Portway Scaffolding will be back to doing what it does best as soon it is safe to resume work.
“We believe that no viable business should go unsupported and understand how important SMEs are to the growth and prosperity of our local communities.”
Ryan Cartwright, Senior Manager at the British Business Bank, said:
“With this MEIF loan backed by CBILS, BCRS is providing Portway Scaffolding with the finance it needs to manage this period of interruption. It is great to see that we are able to support yet another business which is well placed and keen to progress existing and new projects.”
Pat Hanlon, Director for Access to Finance at GBSLEP, said:
“The COVID-19 pandemic has inflicted generational challenges on the construction sector, which is why it is imperative to support businesses such as Portway Scaffolding which represent a vital part of the supply chain and will play a critical role in the strength and speed of the construction industry’s recovery.
“It is our duty to provide as much support to local businesses as we can. This investment will enable Portway Scaffolding to continue its own success, support its partners as they develop key residential, commercial and infrastructure schemes throughout the region and safeguard 32 local jobs.”
The Coronavirus Business Interruption Loan Scheme (CBILS) is managed by the British Business Bank on behalf of, and with the financial backing of the Secretary of State for Business, Energy and industrial Strategy (BEIS).
The Midlands Engine Investment Fund project is supported financially by the European Union using funding from the European Regional Development Fund (ERDF) as part of the European Structural and Investment Funds Growth Programme 2014-2020 and the European Investment Bank.
West Midlands based businesses can secure loans from £50,001 to £150,000 via CBILS from accredited lender BCRS Business Loans. Visit www.bcrs.org.uk to discover more.