Laing O’Rourke secures refinancing deal
Laing O’Rourke chairman Ray O’Rourke has warned that the difficulty construction firms face securing funding is a matter of “critical national importance”, as his own company announced that it has agreed terms with its financial partners for a refinancing deal.
The new deal for the UK business will deliver banking facilities until 2022.
Arrangements were agreed over the Christmas period and are in the process of being taken through final credit approval protocols and documentation by each lender organisation, the company said.
Laing O’Rourke is now finalising its FY18 year-end accounts, which are overdue, and will file them “as soon as possible”.
The deal came after the company completed what it terms a “successful turnaround”, and follows the refinance of its Australian business in mid-2018.
Founder and croup chief executive Ray 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.
“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.”