KNUTSFORD-based business Packaging Automation has secured a six-figure funding package from Barclays through the Government-backed Coronavirus Business Interruption Loan Scheme to maintain the ability to trade through the Covid-19 crisis.

Packaging Automation makes packaging machinery, with specialist knowledge of tray heat sealing technology and factory automation.

The business was established in 1963 by Arthur Penn and is still owned and managed by the Penn family.

With the effective shutdown of the industry because of Covid-19, many of the clients it serves were not able to continue with planned projects, presenting significant challenges on the business until normal trading resumed.

Thankfully, the manufacturer has now secured a six-figure sum from Barclays through the Coronavirus Business Interruption Loan Scheme (CBILS), which will help the business with the working capital it needs to see it through this disruptive period.

Neil Ashton, managing director, said: “A couple of months ago nobody could have predicted the challenge we were about to experience.

“We are thankful to be supplying equipment to the food industry, not just in the UK but globally.

“Having said that, we didn’t know whether investment in new capital equipment would dry up amidst the pandemic confusion.

“We had a strong order book but were experiencing some customers delaying deliveries and therefore final payments until a time of greater certainty and relaxed safety restrictions.

“We had to protect the company and the safety and welfare of our workforce, who are essential workers to the food industry.

“At the start of lockdown we were uncertain about the volume of new machinery orders we would receive during the next few months and for a period it seemed for many businesses capital investment was on hold.

“We had to plan for the worst-case scenario that we wouldn’t receive any orders until October, so we spoke to Barclays.

“From the initial conversations and the releasing of the formal paperwork, we found the whole CBILS experience was really easy.”

Robin Richards, Barclays Relationship Director, said: "It's been very rewarding working with Neil and the business to provide funds so they can sustain their business through the current crisis.”