Laing O’Rourke has agreed terms with its lenders to secure new financing until 2022.
Its accounts for the last financial year are now more than three months overdue but will be published once new financing for its UK business has been finalised, the company said.
Refinancing for Laing O’Rourke’s Australian business was completed in mid-2018.
Chief executive Ray O’Rourke (pictured) told Construction News in October that the lending market was moving “slowly” and that auditors would not sign off the company’s accounts until the new financing had been agreed.
In today’s update he reiterated that the difficulty of securing new finance remained a serious threat to the sector.
“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,” Mr O’Rourke said.
“This remains an issue of critical national importance and concern for 2019.”
In November, Kier announced a £264m rights issue to raise capital for the business as UK lenders walked away from contractors.
Kier chief executive Haydn Mursell told CN it would affect the whole industry and that four other contractors in particular were being avoided by banks.
Analysis by CN towards the end of last year found lending to the construction sector had fallen more than £4bn between 2015 and the middle of last year.
In its last published accounts for the year ending 31 March 2017, Laing O’Rourke made a £66.9m pre-tax loss.
Mr O’Rourke told CN in October that results for its most recent financial year would show the company as profitable on a non-underlying basis.
It has forecast EBITDA for the financial year ending 31 March 2019 will be around £70m.