Builder says support from bank, along with restructuring, will help it pursue plans for growth
York-based builder Shepherd Group has signed a £90m refinancing deal with bank HSBC which it says will enable it to continue to pursue its growth plans.
Shepherd, founded in York in 1890, said the financing package would see an “increase in committed lines from the bank” to support its growth.
The firm, which emerged this year as a creditor of £15.5m from the collapse of the Trinity Walk shopping centre in Wakefield, has also cut staff and restructured as the recession has deepened, but made a £22.9m pre-tax profit last year.
Terry Smith, group finance director at Shepherd Building Group, said: “This extensive facility provides us with the flexibility to invest in our business over the coming years. Despite challenging market conditions, we remain well capitalised, and as such we are delighted to be in a position to pursue growth plans.
"As a result of our 40-plus year relationship, HSBC understands our business and our ambitions, and has the unrivalled credentials to support our aspirations. We appreciate their ongoing support.”
David Gregson, HSBC senior corporate banking manager for Yorkshire & North East, said: “HSBC is delighted to be able to provide further support to our long standing customer.
"The facilities – which recognise the group’s financial strength and standing - will allow the management team to pursue their business plans from a sound base and enable them to capitalise on opportunities across their diverse operations.”