Two Magpies story of post-lockdown growth
Our story
Two Magpies is an independent artisan bakery. Founded in 2012 by Rebecca and Jim Bishop, it operated a single retail site before Steve Magnall joined the business in 2018 and bought 50% equity.
The business has experienced substantial growth following Steve’s investment, allowing it to open another ten sites. Despite serious challenges during the pandemic – one site went from taking £16k a week to just £35 – Steve has managed to keep the business growing.
The challenge
The business experiences enormous seasonal peaks and troughs. This was underscored in 2020 when August sales were three times higher than January. Consequently, there were periods when, without additional funds, the business could not maintain its base of highly trained staff.
The cost to let go, then re-hire and re-train staff is unaffordable, while the damage to their reputation as a fair business with integrity is hard to repair. So, in December 2021, when they needed funds quickly to retain their valued employees during the quieter winter months, Steve contacted Liberis.
I could have borrowed money from other sources, potentially cheaper, but this would have taken longer, and I would have had to do more personal guarantees, so the process was much simpler.
Two MagpiesSteve- The solution
Two Magpies took out a £220,000 Revenue Finance funding with Liberis. Following a simple application process, Steve worked with Liberis to decide how long he needed to pay the funds, allowing him to plan his cash flow for the year ahead. He describes the Liberis funding as a “comfort blanket”, reassuring him that amid ebbs and flows in trade, he can rely on fast, simple funding when he needs it.
“I know if I was struggling next year 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. I could have borrowed money from other sources, potentially cheaper, but this would have taken longer, and I would have had to do more personal guarantees, so the process was much simpler, and I don’t think the cost was too expensive for short-term cash”
The initial funds proved invaluable, allowing the business to keep staff fully employed during quiet periods and maintain growth before a further injection of funding was invested in opening two new town sites – a shift away from relying on coastal sites that helped level up the gap between winter and summer trade and increase revenue.
Increased staff retention coupled with the new sites shifted the growth trajectory of the business, which was accelerated by a third and fourth round of funding worth £250k and £500k respectively. This allowed Two Magpies to invest in a further large site and upgrade its production facilities – and the results have been transformative.
- Job creation: increased from 60 staff in 2021 to 171 in 2023
- Revenue growth: increased from £450k in 2013 to £8 million in 2023