Laing O’Rourke seals refinancing deal with banks

Aaron Morby 1 year 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

Summer start for 350-flat Nottingham scheme

9-storey block to be built next to Nottingham station
3 hours ago

Fusion21 names decarbonising framework winners

Sixty eight firms secure places on £250m energy efficiency franework
5 hours ago

Bardsley crashed owing £45m to trade creditors

Manchester builder hit by toxic mix of contractual disputes and project delays
13 hours ago

Bardsley hit sends Anders Glass under

Manchester glass merchant and glazing contractor crashes
14 hours ago

Speller Metcalfe wins £14m Devon leisure centre deal

New Tarka Leisure Centre to offer ‘endless ski slope’
9 hours ago

Green light for UK’s first ‘super slender’ resi tower

Broad Street tower in Birmingham will be less than 10m wide but rise to 37 storeys
1 day ago

Higgins bags £44m job at Shredded Wheat Factory site

Over 200 homes planned for Welwyn Garden City site
1 day ago

Jackson gets go-ahead to start £22m road upgrade

Construction to start this spring after funding agreed for A2300 improvemnets
14 hours ago

Berkeley buys former Civil Service College site

New homes and a retirement village to be built after £50m sale
1 day ago

Bilfinger wins £58m pipework deal at Hinkley Point C

Latest award from EDF at giant nuclear site
1 day ago

£1bn South West Wales framework winners

Andrew Scott and Interserve secure major projects lot for first time
2 days ago

Japanese to build UK’s biggest offsite village

Sekisui House and Urban Splash get green light to build 400-home scheme
2 days ago

Part of Clacton Pier collapses during concrete pour

Part of existing deck falls into sea during structural refurbishment work
2 days ago

Race to start for Government’s first £500m hospital

Bidders Day next month for Leeds General Infirmary expansion
2 days ago

Morrison set for £50m Stirling women’s prison

Galliford Try arm in line for redevelopment of Cornton Vale women’s prison
2 days ago

Pipe fitter hit by 700kg water pump

Worker suffers multiple fractures during accident at east London site
2 days ago

Costain cuts in to take £290m A30 upgrade

Contractor set to build bypass after Taylor Woodrow fails to agree price with Highways England
5 days ago

Aerial platforms collide on rail maintenance site

Investigation launched after accident on tracks in Essex
4 days ago

JCB cuts UK production as coronavirus hits supply chain

A quarter of JCB's component suppliers in China are on shutdown
5 days ago

Manchester Mayfield phase 1 gets green light

Work to start this autumn on new park, two office buildings and major car park
5 days ago

Boost your online presence – join the Enquirer Directory

Site for suppliers and buyers showcases products, services and latest stories
2 years ago

Sisk appoints new northern MD

Alan Rodger replaces Guy Fowler as head of the northern operation
5 days ago

Plan for £100m revamp of Manchester CIS tower

Landmark 31-storey tower refit plan as facade reaches end of design life
5 days ago

Willmott Dixon tipped for £120m Stockport Interchange

Work to start this spring on bus station scheme
5 days ago

Mace to build laser centre

Latest contract win on £81m research complex
5 days ago

Skanska scoops £240m London office job

Work set to start on 420,000 sq ft City office scheme at 20 Ropemaker Street
6 days ago

Chancellor resigns just weeks before the Budget

Sajid Javid quits with Budget due on March 11
5 days ago

Cheaper adjudication to resolve smaller dispute claims

Claims of £50,000 or less will now be worth pursuing
6 days ago

GPE revs up for £600m trio of office projects

Developer preparing to deliver 820,000 sq ft of London projects
6 days ago

Plans unveiled for £260m Digbeth cultural quarter

Over 1,000 flats and a 120-bed hotel planned at Upper Trinity Street scheme
6 days ago

Contractor services