Stewart Milne Group has secured a £185 million banking facility to pursue its long-term strategy of focussed growth and geographical expansion.
The funding package with Bank of Scotland has been put in place as the group embarks on a number of new residential developments, increasing its presence across Scotland and the North West of England.
The locations are aligned to the company’s geographical expansion plans and underpinned by the strength of the overall housing market.
The group is also ramping up its timber frame systems business Stewart Milne Timber Systemsamid rising demand from housebuilders and contractors for offsite construction.
Glenn Allison, chief executive of Stewart Milne Group, said: “This new facility, which provides us with funding through to December 2019, enables the delivery of our longer-term strategy and gives us the scope to plan ahead and continue to grow in our existing core markets.”
By taking a longer-term view and prudent approach, Stewart Milne Group says it has been able to react to different market conditions in each of its geographical areas and increase opportunities to grow.
Mr Allison added: “With this new bank facility and a strong balance sheet, we are able to realise our expansion plans. We have recently launched six new developments across Scotland and North West England, with further new developments in the pipeline.
“The government help to buy schemes in England and Scotland have played an important role in helping consumers to buy affordably and will continue to play a role in the coming year as we build on our strong working relationships with mortgage lenders.
“Our timber systems business is benefitting from growth in the housing market with a significant number of national house builders and contractors adopting timber frame and offsite construction to deliver their needs in a streamlined and cost-effective manner.
“We believe that the overall outlook for the group is positive and that we are well placed to deliver in both our market sectors. Our strategy of growth and targeted geographical expansion is building on our reputation for delivering the homes and the environments our customers want to live in.
“We are delighted that Bank of Scotland has once again demonstrated their commitment to us and the housing sector. We have had a long relationship with the bank, which has played a strong part in the success of Stewart Milne Group.”
Established in 1975, Stewart Milne Group has a current annual turnover of around £220m with 850 employees.
News source: Scottish Construction Now