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.”
