Bibby Financial Services provides £5m to London’s Hotelcare
Bibby Financial Services (BFS) has provided a £5m invoice discounting facility to HC Facility Management Ltd (HCFM), a leading provider of outsourced hotel support services to the UK hospitality sector.
HCFM, which operates under the brand name Hotelcare, supplies the hospitality industry with a range of essential staff from room attendants to executive housekeepers, providing jobs for over 4,000 people. The business services over 200 hotels and apartments and holds long-standing relationships with leading hotel chains including Accor and Jury’s Inn, as well as privately owned franchises and stand-alone properties across the UK. An experienced player in the industry, the business has been running for over 30 years and directs its operations from Canary Wharf, London.
With the hospitality sector hit hard by Covid-19, HCFM required working capital to allow it to navigate the final stretch of lockdown restrictions and safeguard the employment of its team. Earlier this year, BFS was introduced to the senior leadership of HCFM by David Rutter of Turpin Barker Armstrong (TBA). Together with TBA, BFS was able to structure the funding deal during a critical time for the business.
BFS’ invoice discounting facility provided HCFM with the necessary cash flow to release cash against outstanding customer invoices. The business has subsequently been able to pivot towards growth and is now operating at a more profitable level as restrictions on the travel and hospitality sectors ease across the UK. The business is now targeting annual revenues of over £50 million.
Joel Moore, co-owner & CFO, HC Facility Management Ltd, commented: “The pandemic brought huge uncertainty and instability to our business and to the entire hospitality sector. We have been extremely impressed with BFS’ willingness and ability to support us at a time when other funders were not, during what was a challenging period.
“As a result, our business is now financially stable and, most importantly, we have prevented the need to lay off large proportions of our team. With restrictions easing, we are already seeing an increase in activity and are both excited and relieved to begin ramping up our operations.”
Maxine Hennessy, corporate manager, Bibby Financial Services, said: “Upon being introduced to HCFM by David Rutter at TBA, collectively we worked to quickly understand the business’s requirements. TBA’s invaluable support and expertise allowed us to structure the invoice discounting facility that helped the business service its immediate needs.
“In addition, Joel and his team’s clear post-lockdown strategy meant we were able to partner with the business in confidence, and we are looking forward to seeing the business rise to meet the opportunities that an easing of national restrictions brings.”
David Rutter, corporate finance manager, Turpin Barker Armstrong, said: “We were keen to introduce BFS to HCFM as we were confident that BFS would be a suitable, willing partner for the business.
“We are therefore very happy to have facilitated the deal which has allowed HCFM to secure the ideal funding facility that has safeguarded the business’ future and allowed it to look towards growth.”