Nursery group secures £1.6m loan to support business during pandemic

One of the largest nursery groups in the UK, Children 1st currently has 14 of its 24 sites open across the Midlands and South Yorkshire, while some sites have temporarily merged with others.

The group has faced a significant fall in revenue since the lockdown, with just 15 per cent of the around 4,000 children it usually provides care for currently attending nursery. Some staff have been put on furlough.

The business secured the £1.6m finance agreement from Lloyds Bank, brokered by Goodman Corporate Finance, and was also offered a 12-month capital repayment holiday on its existing borrowing.

It has continued to provide care for children whose parents are key workers, and for the most vulnerable, since the Government’s shutdown of schools and nurseries more than two weeks ago.

The nursery group has also suspended nursery fees for parents whose children are not able to attend nursery during the pandemic.

Adrian Mason, managing director at Children 1^st, said, ‘It’s really important that we keep our nurseries open so key workers can continue with the vital work that’s keeping the country safe and working, but a huge drop in attendance numbers after the lockdown was announced meant that cashflow was becoming a problem. 

‘Not only will this new funding mean we can carry on supporting key workers and vulnerable children, it also means that we can retain our amazing team of employees and ensure the long-term future of the company. It’s all been possible thanks to the fast response of Lloyds Bank and Goodman Corporate Finance.’

Jon Saltinsall, senior healthcare banking consultant at Lloyds Bank, said, ‘The finance secured by Children 1st will act as a much-needed buffer to the company as it, like many other firms, overcomes unprecedented challenges in the weeks and months ahead.

‘It’s a fantastic example of a strong-willed firm that’s fighting through the crisis so it can continue to play support the UK’s essential workforce.’