Hospitality

Two Magpies story of post-lockdown growth

The business has been a roaring success with a substantial period of growth following investment and involvement from Steve since 2018.

Summary

About Two Magpies Bakery

Two Magpies Bakery is an Independent Artisan Bakery, producing bread, pastries and savory products by hand to 7 retail sites, 7 days a week. Steve and Rebecca have taken the company on an incredible journey since 2012 – from opening at the back of a small gift shop on the High Street in Southwold, to running 10 sites around East Anglia.

The business has been a roaring success with a substantial period of growth following investment and involvement from Steve since 2018. Despite a serious hit during the covid pandemic (one site went from taking £16k a week to just £35!), the pair managed to keep the business not only going but expanding, with an amazing bounce-back last year.

1x

£1,000,000

£1,000,000

in potential revenue by realising their potential through new site opening

“Liberis funding allowed Two Magpies Bakery to keep all staff fully employed, which not only positively affected the local community, but in turn actually saved them more money - meaning they were able to open another shop early this year that has the potential to earn revenues in excess of £1m.”

Steve Clerck, Two Magpies
Challenge

Seasonal sales pose cashflow challenges

In a business where all products are handmade and quality is of utmost importance – employees are highly trained professionals, and are at the heart of what makes the Bakery so successful. Not only this, but Two Magpies Bakery is a huge part of the local community, with 204 staff across 10 sites in the region.

However, this type of business sees enormous seasonal peaks and troughs. August sales are 3x that of January, meaning there are significant periods whereby, without additional funds, the business would not be able to maintain its vital staff base. The cost to let go, then re-hire and re-train staff is exponentially high, as well as the cost to the wider community and their company reputation as a fair, honest business with integrity. So in December 2021 Steve & Rebecca needed funds quickly in order to retain their employees during the upcoming, quieter winter months.

Outcome

Surviving lockdown conditions

Two Magpies took out a Liberis BCA of £220,000, which allowed them to keep staff fully employed during their less busy months – these funds have been invaluable in keeping the growth momentum of the business.

Steve was able to work with the Liberis team following a simple application process, to decide how long he needed to pay the funds so he could plan his cash flow effectively for the year ahead.

Steve describes the Liberis funding as a “comfort blanket”, reassuring him that in his business that’s characterized by ebs and flows, he can rely on fast, simple funding when he needs it.

“I know if I was struggling next year that I could go to Liberis and it would work.. if I’m in that situation I’ve got a solution that makes the business survivable”

Liberis funding allowed Two Magpies Bakery to keep all staff fully employed, which not only positively affected the local community, but in turn actually saved them more money – meaning they were able to open another shop early this year that has the potential to earn revenues in excess of £1m.

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