Keltbray secures finance deal with leading UK bank to pursue growth in the civil engineering sector

Keltbray Group has secured a new finance agreement with a leading UK commercial bank to support the contractor’s continued growth aspirations within the construction and civil engineering sector. 

Metro Bank has agreed to offer Keltbray a £30 million working capital loan, comprising a £10 million overdraft and £20 million Revolving Credit Facility (RCF), over three years, to support its operational and strategic priorities. 

Related activity by the contractor includes in October last year when Keltbray’s Infrastructure Services division announced the acquisitionof Linbrooke Services’ rail business, which had been delivering end-to-end ‘design and build’ solutions across UK rail infrastructure since 2003.   

Keltbray diversified into infrastructure services in 2009 with the acquisition of Gamble Rail, followed by Aspire Rail in 2010. Then, in August last year, Keltbray sold its Infrastructure Services Limited (KISL) business to private equity firm EMK Capital. 

The contractor said the divestitures would allow it to focus more keenly on built environment and major civil engineering markets, which remain a “challenging environment” for construction businesses.  

Brendan Kerr, executive chairman at Keltbray, said: “We are looking forward to a good working relationship with the team at Metro Bank. They have spent a great deal of time getting to know the Keltbray business and what makes us tick and are keen to support our growth into more resilient markets and better margins.” 

In July last year, Keltbray reported turnover for the year ended 31 October 2023 of £689 million, a 30 per cent increase on the previous financial period, but generated a pre-tax loss of £1.2 million.  

Gross profit increased by 25 per cent to £72.5 million, while operating profit decreased slightly to £4.9 million.  

At the time then-group chief executive, Darren James, said the performance was down to infrastructure markets such as energy transition and decarbonised transport, where secured work exceeded £1 billion.