Banks willing to fund nurseries' plans to grow

Child First Nurseries has secured a funding package and switched its business banking to HSBC to open a second nursery in Aylesbury at the end of the month. The group which runs six nurseries throughout the Midlands now has 700 children on its books and the new nursery will employ 20 people.

Part of the funding will be used to refurbish existing sites and install children's play furniture by specialist company Dragonswood.

Child First's director, Tom Shea said, 'We aim to create stimulating and creative nurseries where the child develops and learns through play and enjoyment. This funding will enable us to improve the quality of resource we offer, as well as expanding the number of nurseries in our portfolio.'

Steve Davies, HSBC's Northamptonshire, Milton Keynes and North Beds deputy area commercial director, added, 'Tom Shea's pedigree in childcare is second to none, developed over 40 years of experience in the sector. He has built, managed and sold highly successful nursery chains in the past, so has all the acumen and knowledge to make this investment work. He puts the child first and that leads to successful and profitable nurseries. We are pleased to be able to support this growing business.'

Magic Nurseries, which owns nine nurseries across the Midlands and Hertfordshire, has also refinanced, with a five-year £3.25m loan from Barclays.

Tom Reed, managing director of the group, said that it was still possible for nursery operators to borrow money from the banks on good terms 'despite all the recent doom and gloom. We found Barclays to be very keen to lend to nursery businesses.'

A group of friends who set up a nursery in 2004 are opening their second Jeffrey's Corner nursery in Springhead, Oldham, in response to demand at their existing setting. The new nursery will cater for 55 babies and children.

Deputy manager and co-owner Eileen Smith said, 'The nursery has gone from strength to strength based on word of mouth. We have talked about expanding for eight years but we were so busy we didn't have time. Then we found out that this building was available and we knew there was a need for us here as some of our Dukinfield nursery children live in Springhead.

'We were with another bank, but we got a better reception when we approached The Co-operative Bank and a better deal.'

In the latest issue of Nursery Chains, the directory of groups in the UK and Ireland found that more than 20 of the nursery chains listed had imminent plans to open more settings within the next 12 months.