A family-run holiday resort in Somerset is set to take turnover to over £10 million this year after expanding its accommodation using an asset based lending (ABL) package from Lloyds TSB Commercial Finance.
Based near Burnham-on-Sea, Holiday Resort Unity (HRU) is spread across a 228-acre site and includes a caravan park, golf course, large entertainment complex, private beach and swimming pool complex, as well as family amusement attraction, Brean Leisure Park.
Originally a dairy farm purchased by the House family in 1947, sustained investment since the 1980s has transformed the site into one of the largest independent holiday resorts in the UK.
This year the firm boosted capacity to accommodate the increasing number of Britons opting for ‘staycations’ as they tightened their purse strings and avoided unfavourable exchange rates abroad.
To secure funding for the investment, HRU approached Lloyds TSB Commercial Finance, which has worked closely with management over a number of years to provide flexible funding that supports the company’s long-term expansion strategy.
The asset finance provided by Lloyds TSB Commercial Finance helped the business to buy 18 luxury caravans and lodges to replace some of its 140-strong fleet and provide extra capacity - a move that is set to take turnover to over £10 million.
This form of lending enables the firm to spread the cost of purchasing the mobile homes over a number of regular payments, ensuring it does not need to tie up lump sums of cash and put pressure on cash flow.
Lloyds TSB Commercial has also provided HRU with day-to-day banking for over 50 years.
As part of its ongoing expansion strategy, the company is also planning to overhaul its swimming pool complex and construct an ice rink within the next two years.
Alan House, Director of HRU, said: “It is important to regularly invest in high-spec accommodation and update our facilities to maintain the standards our customers expect, especially as we had a busy summer season this year due to an increase in advance bookings.
“We operate in a very competitive market but with the help of Lloyds TSB we have been able to establish one of the largest family-run independent resorts in Britain.
“Lloyds TSB Commercial Finance has provided us with flexible finance solutions for 10 years, scaling the facilities up or down to meet the exact needs of the company at that time, ensuring we can continue to grow the business and secure our long-term future in the UK tourism industry.
Stuart Williams, Regional Manager for Lloyds TSB Commercial Finance, said: “The continuing expansion of HRU is great news for the local economy, drawing a growing number of tourists to the area, boosting the number of jobs available and helping to establish the region as a top destination for British holidaymakers.
“By utilising asset finance packages from Lloyds TSB Commercial Finance, the company has been able to invest in its facilities year after year without tying up working capital.”
David Snart, Relationship Manager for Lloyds TSB Commercial, said: “Our close working relationship with HRU means we understand the firm’s ambitions and are able to identify the most suitable lending package for its needs.
“In this case, ABL was the best option as it enabled the firm to invest during the low season whilst maintaining cash flow levels.”
September 2009