Laing O’Rourke seals refinancing deal with banks

Aaron Morby 10 months ago
Share

Laing O’Rourke has struck a deal with its lenders to refinance the UK business with new banking facilities until 2022.

Ray O'Rourke warns financing and regulatory squeeze remain issue of critical national importance in 2019

The long-awaited refinancing means Laing O’Rourke can now sign off overdue accounts for last year, which should ease concerns among key credit insurers and invoice factoring providers.

The UK arrangements were agreed over the Christmas period, and are currently in the process of being taken through final credit approval protocols and documentation by each lender organisation.

Chief executive Ray O’Rourke told the Enquirer that the business had now completed its turnaround following two years of losses and was set to post a profit for both its UK operations, and globally.

Turbulence in the construction sector following the collapse of Carillion had delayed refinancing being fully signed off and set back publication of the firm’s March 2018 annual results.

O’Rourke said: “I am delighted to be able to update our stakeholders on the progress of the refinancing exercise.

“These agreements reflect an enormous amount of work by the banks, sureties, advisors and our people.

“Having achieved this important milestone as we enter the new calendar year, I want to take the opportunity to thank our clients and supply chain partners for their support and patience.

“As noted in October last year, and well publicised across the sector since, financing and regulatory processes in UK construction are not simple for any business at present. The entire sector has been impacted. This remains an issue of critical national importance and concern for 2019.”

He added: “For its part – Laing O’Rourke will be driving new levels of productivity through innovation, offsite manufacturing, data analysis and modern procurement practices; initiatives we believe will lead the way to a more sustainable UK construction sector.

“We urge Government and other bodies to support the modernisation and reform of the industry and the three million UK jobs it creates.

“Today’s announcement that financial heads of terms have been reached is a tribute to our loyal employees, without whom we could not have delivered the ground-breaking achievements of recent years.”

Latest news

Construction braced for freelance tax disruption

Self-employed professionals face major contractor move back to PAYE
24 mins ago

Rain halts BAM’s Carlisle flood defence job until Spring

Wet weather in August and September blamed for pause on £25m scheme
14 mins ago

Bristol student tower block trio approved

Work expected to start at Temple Island midway through next year
35 mins ago

Atkins names ex-HS2 ops boss as UK chief executive

Richard Robinson will lead Atkins UK's 10,000 strong team
17 hours ago

Procurement bodies team up for new consultants framework

North West and Southern framework groups call up multi-disciplinary consultants
26 mins ago

Materials giant sees brick and block sales weaken

Bison precast business hit by contract delays
27 mins ago

Wates kicks off York council house building programme

£27m Lowfield Green scheme will see 140 homes built
27 mins ago

L&G commits to £750m affordable homes investment

Affordable homes division hires former Capco director to deliver 3,500-home pipeline
17 hours ago

ISG names new UK construction chief

Zoe Price promoted to chief operating officer for construction
1 day ago

Interserve set for £36m Walsall hospital A&E upgrade

Work to start in April next year at Walsall Manor Hospital
24 hours ago

London council to overhaul £370m housing upkeep

Lambeth council to give residents say in policing delivery by contractors
1 day ago

Carpenter falls through gap in safety deck

Badly installed safety system did not cover whole work area
1 day ago

Fusion21 launches £250m energy efficiency framework race

Firms installing PV panels, cladding and LED lighting called up for new framework
1 day ago

Boost your online presence – join the Enquirer Directory

Site for suppliers and buyers showcases products, services and latest stories
1 year ago

Construction safety test cheats caught in police raids

Crooked test centres in answers for cash scandal
4 days ago

Demolition giants land places on £50m framework

Housing Association Notting Hill Genesis confirms eight winners
4 days ago

Green light for £79m “Mancunian” tower

Planners approve major city centre regeneration scheme
4 days ago

FEC starts £470m Isle of Dogs twin tower project

JRL starts piling work on 65 and 35-storey hotel and flats project
5 days ago

£200m Lancashire waste incinerator approved

Heysham Gateway energy recovery facility will create 350 construction jobs
4 days ago

Common prequal standard adopted for HS2 subcontract bids

Main works civils contractors adopt new PQQ system to cut supply chain costs
5 days ago

Westridge to restart stalled Brighton Dome revamp

Contractor wins race to replace Britain's oldest builder on £21m renovation job
5 days ago

Laing O’Rourke returns to profit

Britain's biggest private contractor returns a £33m profit after stemming losses in Canada
5 days ago

Vast Elizabeth House London scheme to start next year

HB Reavis gets planning go-ahead for 1.2m sq ft project beside Waterloo Station
6 days ago

Digger driver jailed after builder crushed by excavator bucket

Ten month sentence after worker killed in trench
5 days ago

Winvic margin falls as revenue jumps 29% to £628m

Pre-tax profit drops a third to £20m as shed builder boosts workforce for growth
4 days ago

Interserve signs off £13m Oldham cultural hub deal

Firm lands heritage and art centre project where Gilbert Ash held a pre-construction services agreement
6 days ago

William Birch lands York housing scheme from local charity

Construction to start later this year on apartments for visually impaired people
5 days ago

Winner picked for £250m ‘Harrods of Bayswater’ job

London's Whiteleys shopping centre to be redeveloped
6 days ago

No win no fee service launched for construction disputes

New service to create "level playing field" for smaller contractors considering adjudication claims
6 days ago

Alun Griffiths lands £85m Cornish link road

Construction could start next year on St Austell scheme
6 days ago

Contractor services