Laing O’Rourke seals refinancing deal with banks

Aaron Morby 5 years 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
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

McAlpine pulls out of £55m Carlisle Citadels project

University of Cumbria starts hunt for replacement contractor
3 hours ago

McLaren Living appoints HG Construction for £69m scheme

Build to Rent scheme will transform former vacant car park site in Leeds city centre
2 hours ago

Squibb liquidator probes £2m of “missing” plant

Machinery, cars and scrap metal have disappeared at demolition specialist
8 hours ago

Galliford Try to re-enter affordable homes market

Contractor sets out new five-year plan to build margin to 4%
7 hours ago

Former Sellar chief to lead civils contractor Kilnbridge

Owen Dannatt joins as new CEO as founder Dermot McDermott becomes Chairman
7 hours ago

Hunt starts for nuclear fusion plant construction partner

Fusion energy plant to be built at West Burton coal power station site.
7 hours ago

National Grid raises £7bn for big infrastructure upgrade

Rights issue to fund a major round of capital investment in energy infrastructure
7 hours ago

Grenfell police probe to last at least until end of 2025

19 companies and 58 individuals could eventually face charges
17 hours ago

Mace confirmed on £100m London office retrofit

Work underway on Helical's 100 New Bridge Street job near Ludgate Circus
1 day ago

Wylfa chosen for next big nuclear power station build

Government names Anglesey site for a large-scale gigawatt nuclear power plant.
1 day ago

Bowmer & Kirkland trading profit halves

Contractor buys HVAC specialist Adcock despite challenging market
1 day ago

Piling specialist Van Elle plans further job cuts

Piling specialist plans further cost savings in face of lower demand
1 day ago

Civils contractor A Catlow files administration notice

High voltage cable specialist lodges court notice
1 day ago

Green light for ARC Oxford lab campus

Work to start later this year on £40m Ascent building job
1 day ago

Stonehenge tunnel hit by another legal delay

Court upholds latest appeal against £1.7bn scheme by campaigners
2 days ago

Plans go in for huge Olympic Park construction hub

Bow Goods Yard could deliver 3.5m tonnes of materials a year to sites across London
2 days ago

40% affordable homes target for Labour’s new towns

Labour pledges to select new town sites by end of first year
2 days ago

Plan for £100m Liverpool Baltic station

Construction work could begin next year
2 days ago

Surgo Construction went down owing £4.5m

Biggest creditor is Bellway Homes after dispute on housing job
2 days ago

Vistry seals £157m West London housing deal

Around 575 homes to be built at Merrick Place scheme in Ealing
2 days ago

Streamlined Watkin Jones returns to profit in first half

Multi-room specialist sees secured work pipeline hit £1.4bn
2 days ago

Bellway hires ex-brickie as group construction chief

James Griffin to oversee move to the Future Homes Standard and timber frame.
2 days ago

Persimmon under fire for delays to £10m relief road

West Suffolk Council serves Breach of Condition Notices after timetable slips again
2 days ago

BAM wins £33m Kent secondary school job

Replacement Swanley academy to be built at live school site
2 days ago

Aluminium cladding specialist collapses

Melton Mowbray-based firm worked for several main contractors
3 days ago

Brickwork contractor Lee Marley returns to profit

Affordable and rental homes demand lifts brickwork contractor
3 days ago

Housing contractor Durkan suffers second year of losses

More fire safety provisions tip firm into £3.9m loss
3 days ago

Farrans makes breakthrough on tricky tunnel job

Tunnel under Tees latest part of new £155m water pipeline job
3 days ago

Heidelberg buys aggregates and earthworks specialist B&A

Latest deal follows acquisition of Mick George
3 days ago

Flagship biodiversity net gain scheme flawed

NAO warns Government's flagship green development scheme at risk of failure
6 days ago

Contractor services