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Highland Industrial Supplies secures backing after Covid-19 hit


By Lorna Thompson

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AN INDUSTRIAL supplies firm which has a branch in Elgin has secured long-term bank support after Covid-19 hit all of the sectors it caters for.

Highland Industrial Supplies (HIS) – which provides tools, equipment, materials, fencing and PPE for agriculture, construction, civil engineering, health and hospitality – saw its income significantly drop in the 72 hours after lockdown measures were announced.

The business, headquartered in Inverness, has depots in Elgin, Orkney, Fort William, Turriff, Perth and Dundee, all of which were forced to close when the government advised people to stay home.

To ensure consumers could still access essential items during lockdown – including cleaning supplies, PPE and vital products for the farming and construction industries – the business set up "click and collect" options and an "essentials only" delivery service.

To safeguard cashflow during the pandemic and place the business in the best financial position to protect itself, HIS approached Bank of Scotland (BoS), agreeing a seven-figure funding package.

The package was designed to support the long-term future of the business, and included term-loan finance, increased working capital and funding via the Coronavirus Business Interruption Loan Scheme (CBILS).

Highland Industrial Supplies in Inverness. Picture: Andrew Smith.
Highland Industrial Supplies in Inverness. Picture: Andrew Smith.

Garry Mackintosh, director of HIS, said: "Our customers come from a variety of sectors, many of which have been hit hard by the pandemic. For example, the goods we provide for the hospitality sector were no longer required as most hotels and restaurants had to shut their doors when lockdown was announced.

"The lack of orders resulted in an almost immediate halt to most of our expected income from that sector from the end of March onwards.

"Thanks to our long-term support with BoS, we have the comfort of the cashflow needed for us to continue progressing with our long-term plans.

"We’re now starting to see sales in some sectors returning to normal levels, and we look forward to decades longer in business."

Graeme Keen, relationship director at BoS, said: "HIS is a prominent Scottish business that’s been operating for more than 35 years, and one of our long-term clients.

"It plays a key role in the supply chain of hundreds of businesses and relies on many of Scotland’s key sectors that have been impacted most by the pandemic.

"It’s an extremely challenging time for businesses across the country, but we will continue to support firms as they adapt and adjust to the changing needs of consumers."

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