Shepherd Group secures £50M funding deal

The deal sees HSBC's Corporate Banking team in Yorkshire join with Lloyds Bank's Wholesale Banking & and Markets team to co-arrange a £50 million revolving credit facility to provide additional facilities in a new club led by David Gregson, Senior Corporate Banking Manager in HSBC's Yorkshire team and Andrew Aisthorpe, Relationship Director at Lloyds. In addition, HSBC has provided a £20 million working capital facility.

The facility was secured following a period of significant financial success during which the York-based Group posted a rise in turnover of 15 per cent to £607m (FYE 2011) with underlying pre-tax profits growing to £24m (FYE 2011).

Shepherd Group Chairman Alan Fletcher said: "This facility strengthens our financial position and demonstrates significant confidence in the potential of the Group, providing us with additional flexibility and capacity for growth."

Martin Lunt, HSBC's Head of Corporate Banking in Yorkshire, commented: "While some businesses operating in the construction sector have experienced challenges in achieving growth through the recession, Shepherd Group has continued to thrive, demonstrating that a forward thinking, proactive approach can overcome barriers presented by market conditions.

"We look forward to our ongoing support of this longstanding and valued client."

Steve Harris, Area Director for Lloyds Bank Wholesale Banking & Markets in North and West Yorkshire, said: "Shepherd is one of the strongest and longest established corporates in the sector with a talented and highly-respected management team that has continued to drive growth and profitability in tough market conditions.

"The business epitomizes the very best in British construction services and manufacturing expertise with a diverse offering and growing overseas operations. It typifies the type of company which will drive our economic recovery and the kind which we're committed to supporting."

Shepherd, one of the UK's leading family-owned businesses, first started trading in 1890 and operates a range of companies. In addition to Portakabin, these include the major national contracting business Shepherd Construction, building services firm Shepherd Engineering Services, facilities management provider Shepherd FM, Shepherd Homes, worldwide bulk handling systems manufacturer and supplier Portasilo and Portastor, a specialist in the manufacture of integrated equipment housings.