Laing O’Rourke seals extra bank funding to 2018

Aaron Morby 7 years ago
Share

Laing O’Rourke has secured extra funding from its banks on the strength of a new five-year business plan for the country’s biggest private contractor.

Chairman Ray O'Rourke set to sanction next phase of advanced manufacturing plan
Chairman Ray O'Rourke set to sanction next phase of advanced manufacturing plan

The new plan setting out the future direction of the business comes as Laing O’Rourke enters into the final phase of talks to sell its Australian business and plans to reshape the company.

Next month chairman Ray O’Rourke will set out major organisational changes at the group, including further details of up to 200 planned redundancies, which are presently out to consultation.

The plan comes after several senior level director changes at the firm in recent months.

In a new financial year trading update sent to senior managers, he reveals that the firm started a sweeping review of the business in September as it prepared to close out remaining legacy projects.

A copy seen by the Enquirer reveals the contractor’s bankers and other stakeholders have backed the plan and agreed extra funding to create a strong and stable platform to meet the market opportunities ahead.

“These stakeholders have shown significant support for our business plan by agreeing additional medium term facilities through to October 2018, reflecting their confidence in the direction of the business,” said O’Rourke.

He also confirmed that the planned sale of Laing O’Rourke’s profitable Australian operations was progressing in line with expectations. 

The contractor is rumoured to be looking at a deal of around £400m. Proceeds will be used to further strengthen its balance sheet and provide extra working capital, and funds to invest in the group’s advanced manufacturing plans.

This will include building a new modular assembly factory next to Laing O’Rourke’s Explore Industrial Park factory in Steetley, where work could start as early as June.

O’Rourke said: “There are a number of organisational changes that have been made to align the business behind these plans and underpin our vision and strategy en route to becoming the delivery partner of choice through early engagement as an engineering and manufacturing enterprise.

“The key drivers remain a clear focus on securing major projects and strategic frameworks, improved productivity on our projects, all of which is supported by an efficient overhead cost base.

“I will return to the organisational structure at the beginning of May when we will have more definition on the progress regarding the divestment of the Australia Hub.”

Latest news

CITB told to improve by Ofsted inspectors

Number of in-house apprentices drops as training body changes business model
35 mins ago

£9.3bn race starts for National Grid construction partners

Plan for Great Grid Upgrade Partnership to be set out at bidders day in early June
15 hours ago

Plan approved to redevelop major Glasgow shopping mall

Outline plan backed for demolition of St Enoch centre for over 900 homes, shops and leisure space
16 hours ago

Banned demolition boss wins appeal to remain a director

Paul Cluskey wins Court appeal to remain director of Cantillon but steps down as MD
1 day ago

B&K confirms £140m Leeds build to rent project

Work to start on Whitehall Riverside twin blocks for client Glenbrook
1 day ago

McLaren Property to revamp Liverpool roller skating site

242-bed student scheme unveiled for sensitive site
16 hours ago

Wates names Midlands construction chief

Matt Johnson promoted after just 10 months at family-owned builder
1 day ago

Glencar lands £28m Peel Ports Liverpool shed job

240,000 sq ft Alexandra Docks warehouse will be five football pitches long
1 day ago

Private equity giant buys United Living

US based investment group Apollo makes latest swoop on UK construction market
2 days ago

Quartet secure Thirteen Group £500m new homes deal

Esh, Morris & Spottiswood, ReGen and Henry Boot secure spots on new build framework
2 days ago

Luton Town FC to start new stadium before end of 2023

Talks already underway with contractors ahead of submission for detailed planning this summer
2 days ago

Plans for renovation of historic Cardiff Market

Subject to planning and final funding work could start next year
2 days ago

£53m race to cut Magnox reactor buildings down to size

Trawsfynydd reactor buildings to be reduced in height by a third
2 days ago

Cyclist dies in lorry collision outside Keltbray site

Work shut down after fatal collision with truck delivering to central London site
5 days ago

Another demolition director banned after bid rigging probe

Brown and Mason boss becomes fourth director disqualified after cartel investigation
6 days ago

Five hospitals at risk of collapse added to new build programme

Weak concrete crisis and soaring costs force £20bn hospital programme rethink
6 days ago

Scottish South West Hub names new partners

Balfour Beatty joins construction partners for first time
6 days ago

RC frame specialist Getjar revenue tops £100m again

Profit margins nearly halved in face of labour and material price rises
6 days ago

London’s Camden Council advances £470m King’s Cross scheme

Camley Street scheme to consist of 350 homes and 200,000 sq ft of offices
6 days ago

Vinci issues fraud alert to suppliers

Subcontractors targeted by scammers posing as main contractor
7 days ago

Solar panels set to cover commercial buildings

Latest government taskforce targets power potential of non-residential roofs
6 days ago

Quantum Construction collapse costs suppliers £4.3m

Liquidator reveals scale of debts at Staffordshire contractor
7 days ago

Jaguar Land Rover set to build huge gigafactory in Somerset

The vast battery plant would be one of the biggest buildings in the UK
7 days ago

Tender race starts for £95m Victoria Tower repair job

Up to five firms will be invited to bid with work set to start by end of next year
1 week ago

Go-ahead for Brum iconic curved truss HS2 bridge

Balfour Beatty Vinci will carry out one of the largest bridge launches in the UK
7 days ago

Green light for Trafford Waters 85-bed care home

Montpelier Estate advances specialist dementia nursing home at major regeneration site
7 days ago

Fusion21 awards £300m building and refurb framework

Over 60 firms secure places on national building and refurb deals
1 week ago

Supply chain owed £3.8m after collapse of London builder

ME Construction went into administration in March
1 week ago

Ferrovial Construction UK plunges to £30m loss

£54m provisions for Silvertown Tunnel fixed-price contract tip firm into the red
1 week ago

HG Construction hits record revenue but profit slides

Material and labour inflation halves operating margin
1 week ago

Contractor services