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Supporting jobs and the Hull economy

Picture of caravan interior

A caravan manufactured by Atlas Leisure Homes

Atlas Holiday Homes, a Hull-based caravan manufacturer, went into administration in 2008, with the loss of 480 jobs. The directors worked to save the Atlas brand, start a new business and bring jobs back to the local area. They approached high street and investment banks for funding without success, but managed to get things up and running by putting in their own funds for working capital and renting the plant and equipment from the administrators. With the support of customers and suppliers, Atlas Leisure Homes Ltd was formed in 2009.

Andrew Innes is now Commercial Director and recalls,

“As soon as we started trading it meant some money was going into the creditor’s pot for the old company. When it was evident there was a sustainable business, we realised we would need to buy the plant and machinery, and so looked for ways to do this.”

The directors had previously been advised that they would be able to get a current account but not borrow money from a bank. So they approached Hull City Council for help, and they were put in touch with the Acorn Fund.

Atlas Leisure Homes went on to receive a loan of £400,000 from the Acorn Fund, to be repaid over five years, with no capital repayments in the first year.

Creating jobs

Since taking the loan the business has doubled its workforce from 60 to 120 and has been profitable every year. Andrew comments,

“There is a sizeable caravan industry in Hull and it had been through a calamitous period. For every 60 jobs we created there is probably another 60 jobs created through the supply chain in the local area.”

“Without the Acorn Fund quite honestly we wouldn’t have got the business operational. They gave us invaluable support at a time when it was very stressful for employees , and the business was uncertain. The input was absolutely critical to ensure the business could move forward and continue to grow in the future.

Helping businesses grow

The Acorn Fund, also known as the Hull Business Development Fund, is a CDFI which delivers business finance in the Hull area. Peter Sykes is Fund Manager, and is well known in the local community. He has helped many businesses to start-up and grow, and explains,

“We promote, encourage and support enterprise in every shape and form to build the local economy. It’s very rewarding when you’ve given a loan to a business and see it grow, secure jobs and prove successful. And there have been quite a few successes.”

But delivering success isn’t always easy. Peter says,

“We have limited resources, but lots of work and demand. Managing the work and supporting clients is a challenge.”

Improving access to finance

The Acorn Fund was supported by the local council for its first six years. Since then it has looked elsewhere for capital to lend. New funding came from Unity Trust Bank in the form of a£500,000 seven year loan.

Unity Trust Bank portraitsNigel Price is National Lending Manager at Unity Trust Bank, and recalls meeting Peter at a conference.

“We had detailed discussions with Peter and sourced all the information to ensure they met our criteria and had the appropriate personnel, management and governance in place.”

Unity has invested in 25 CDFIs since 2002. Nigel explains why it is a major supporter of the sector,

“CDFIs provide a route to meeting some of our aims. They improve access to finance for small businesses and social enterprises, and they invest in job creation and regeneration. Unity is also keen to help CDFIs scale up and become sustainable.”

“Unity wants to help CDFIs stick to their mission, reach the clients they set out to reach, and fill the gap in finance.”

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