Esh Construction is set to put its regional growth plans into action after sealing a £6m financing facility with Bibby Financial Services (BFS).

The company – the main trading arm of Durham based Esh Group, said it will use the facility will be used to support its ambitious investment and growth plans across the North East, Yorkshire and Humber regions. The group, established more than 50 years ago, is one of the North’s largest privately-owned construction businesses, with civil engineering, affordable housing, commercial build and private housebuilding divisions.

BFS provided a £6m asset based funding package, and Esh said it selected BFS as its funding partner due to the financier’s speed of decision making and ability to deliver a tailored solution which met the group’s specific funding needs. Andy Radcliffe, Esh Group’s chief executive officer said: “We are very proud of the business we have built and the reputation we have earned in over half a century of operation. Securing the right funding partner was vital to us achieving the next stage of our growth ambitions. Flexibility, a deep understanding of our industry, and recognition of our solid financial footing were essential components of our selection process, and this is what we have found in BFS.

“The team went above and beyond to create a custom package in line with our requirements, and we look forward to working with BFS in delivering our ambitious investment and future growth plans.”

The deal was led by David McIntyre, corporate manager at BFS, who said: “We are delighted to have been able to provide Esh Construction with a facility that fits its needs, and to be its chosen funding partner. The North East construction sector has suffered some high-profile business failures in recent months, however this opportunity confirms our commitment to the sector both regionally and nationally. Esh is very well placed to capitalise on a plethora of regional opportunities and we are excited to welcome them as a long-term client of BFS.”

Chris Lloyd, director at KPMG LLP, which introduced Esh and BFS’s corporate teams, added: “Having worked closely with the business for almost a decade we are delighted to have supported Esh on its refinancing. The BFS facility will support its continued growth and we are proud to have facilitated this partnership. Whilst financing for the construction sector can be challenging, this transaction is proof that support is available to strong businesses with a clear and well articulated plan.”

The deal comes weeks after Esh Group posted annual accounts for 2022 in which turnover increased by £6m to £261m, and operating profit dropped by £1m to £3m. The group hailed its healthy profits levels despite seeing considerable industry headwinds. Esh Construction, which had 625 employees in the year, brought in the lion’s share of turnover, having seen a rise from £230.6m to £239.7m in the year, while operating profit rose from £2.4m to £2.5m.

The BFS transaction was supported by Chris Duffill and Tracy Gardner of Gateley Vinden, Ben Slack of Clarion, Zoe Ditch and Claire Naughten of Muckle LLP, and Ed Jeffery of Hilco Global.