Arbuthnot Latham helping specialist childcare provider expand in Lancashire

Just two years into their relationship, the teams at Bay View Childcare and Arbuthnot Latham have developed a very close working relationship. It’s personal.

Bay View, founded in 2011, is run by Paul Johnson and Martin Horner. They currently operate five care homes looking after vulnerable young people in Lancashire.

Their recent expansion has only come to fruition because of the collaborative relationship between the bank and the business owners.

Paul Johnson, Director of Care explains: “Two years ago, we had two homes and a vision. Many of those we look after have troubled backgrounds, they need specialist emotional support. With the right care, however, we can offer them the chance of a brighter, more prosperous future.

“There is lots of demand for these services, but you have to make sure you provide the right care; you can’t just build one massive facility. The care should be personal, the homes should have space and cater for people in their local area. From our perspective, the only answer was to open more homes; for us, as a business, to expand.”

Bay View hit a brick wall with their previous bank; the funding process was cumbersome, and ultimately, they were told the bank wouldn’t lend based on the tangible elements of their business case.

Paul and Martin were then introduced to Shaun Smyth, Senior Commercial Banker from Arbuthnot Latham’s Manchester Office: “It became clear to me very quickly that this was not just a sound business that was being overlooked, but also that it was run by two people with the commitment, passion and expertise to make a continued success of it.”

Shaun, along with colleagues from the Arbuthnot Latham Manchester office, took the time to get to know the business, the potential it had for growth, as well as the challenges they faced. Just two years on and Arbuthnot have been able to provide not just the finance for an additional three homes (five in total), but the working capital to ensure smooth running, and even funding for a potential sixth facility.

Paul Johnson: “When you’re working with vulnerable kids and running a business, you don’t want money to be a worry – we’ve completed this expansion during a pandemic when everyone has been stretched and working in new ways. To do that is an incredible achievement by all involved.”

Getting planning permission and building homes for vulnerable young people brings its own challenges: “It can cause a lot of consternation among residents when they hear there is a planning application for a care home for young people,” said Paul. “There are many misconceptions about care homes for young people. I always say: ‘Anybody’s child could end up in care, and how would you like your child to be looked after?’ You need care providers, businesses, committed to giving young people the best quality of care possible.

“I’m also really proud of how we positively impact the local community. Recently, we donated 100 easter eggs to schools in Morecambe. We also had a special thank you from Ofsted for a recent charity event where we raised £1,500 for charity on a series of sponsored walks.”

Operating childcare facilities is extremely complex. It’s not just about running a business, but also ensuring the needs of some of society’s most vulnerable people are met, as well as dealing with local authorities and regulatory bodies. Bay View, as a provider, have consistently been awarded ‘good’ or ‘outstanding’ by Ofsted.