Spectrum Cleaning Solutions is targeting revenues of £5m as it diversifies into the online space following a £100,000 CBILS-backed loan from NPIF – BEF & FFE Microfinance, which is part of the Northern Powerhouse Investment Fund.
The Scarborough-based company is traditionally a B2B cleaning and hygiene product distributor. The family-run business has supplied cleaning products over the last 25 years and specialises in hygiene consultancy services for hotels, restaurants and hospitals. It employs 13 staff and has turnover of £1m – with forecasts to grow revenues to £5m over the next five years.
Over the last 18 months the business has considered entering the online space – and with the onset of Covid-19 forcing businesses to shut their doors it provided the perfect opportunity to shift its business model.
Spectrum has used some of the loan to launch its new ecommerce platform (www.thecleaningcollective.co.uk) and ramp up its marketing efforts. It has seen increased demand from Flash branded products, along with The Pink Stuff and Minky, which are regularly promoted by social media influencer Mrs Hinch.
Spectrum Cleaning has also used this time to help its local hospice, by donating 5 per cent of its consumer profits to help the hospice continue its vital service.
The £100,000 is made up of a £50,000 NPIF loan backed by CBILS and £50,000 from BEF.
Jo Thompson, managing director of Spectrum Cleaning Solutions, said: “When Covid-19 hit, we either had the option to turn the tap off or diversify our model and enter a new market. I am really pleased with our decision as there has been significant demand and we’re already supplying many homes and businesses across the UK.
“It has been a pleasure working with BEF through the entire NPIF & CBILS process. We filled out the application form, provided a business reforecast and the loan was in our bank within ten days.”
Andy Clough, Investment Manager at BEF said: “It was a pleasure to deliver much needed NPIF & CBILS support to Spectrum Cleaning Solutions, a family-run business with ambitious growth plans and a passion for the local community. Together, our funding and their creativity will enable the business to go from strength to strength.”
Mark Wilcockson, Senior Manager at the British Business Bank said: “Spectrum Cleaning Solutions has shown strength and resilience by changing their business model in the face of the crisis. NPIF continues to be open for business, working with our fund managers to deploy both NPIF and CBILS-backed loans.”
The Northern Powerhouse Investment Fund project is supported financially by the European Union using funding from the European Regional Development Fund (ERDF) as part of the European Structural and Investment Funds Growth Programme 2014-2020 and the European Investment Bank.
CBILS provides facilities of up to £5m for smaller businesses who are experiencing lost or deferred revenues, leading to disruptions to their cashflow. Delivered by the British Business Bank, through accredited lenders and partners, CBILS will support the continued provision of finance to UK smaller businesses during the COVID-19 outbreak.