Laing O’Rourke agrees long-awaited refinancing terms with lenders

Contractor Laing O’Rourke has finally agreed refinancing terms with its lenders after delays forced the company to postpone the publishing of its accounts for the last financial year by three months.

The company said the terms, which were agreed over the Christmas period, delivered new banking facilities until 2022.

The arrangements are currently in the process of being taken through final credit approval protocols by lenders, but the company said it would file its accounts for the last financial year “as soon as possible”.

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.”

Laing O’Rourke’s update follows last week’s news that growth in the UK construction sector eased to its slowest rate in three months in December.

The company lost £66.9m in its last full-year accounts published for year ending 31 March 2017.