Tolent secures £12m in ABL funding from IGF to bolster future growth
North East-based construction company, Tolent, has secured a £12m asset based lending (ABL) facility from Independent Growth Finance (IGF) to help strengthen its position after a challenging year.
The asset-based funding was delivered at pace by IGF to provide the working capital and the flexibility needed to support the business as it overcomes the commercial challenges it faced due to the effects of the pandemic and the closure of its southern business in the same period.
The business, which is expecting to end 2021 with a turnover in excess of £200m, needed the right type of funding that matched its needs and ambitions.
Andy McLeod, CEO of Tolent, reflected on the business’s experience securing funding and the opportunities it unlocks. “There’s no denying that 2020 was a challenging year for us and many more within the industry. We have dealt with the reality of the pandemic bringing reduced site profitability across our portfolio and at the same time, feeling the strain of closing our southern operations which has been a difficult transition.
“However, with the last year now behind us, securing this funding is a hugely positive step and allows us to look forward and reshape the business accordingly over the next few years. I would like to thank all of my colleagues, our clients and supply chain partners for their commitment and support during this time and to the team at IGF for their expertise and assistance in putting this funding in place.”
One of the largest construction companies in the North East, Tolent has weathered COVID lockdowns whilst delivering a number of landmark projects including the NHS Nightingale Hospital in Sunderland. The project, which was completed in just over three weeks and is now used as a large vaccination centre, has led to a string of wins in the healthcare sector and strengthened relationships with a number of NHS trusts in the North East.
Tolent has also recently won new contracts in the education, industrial, residential and housing sectors. Among its 53 live projects is the £85.5m Milburngate mixed-use development in Durham, and a £26m Leisure Centre in Berwick, while it recently delivered Hadrian’s Tower in Newcastle valued at £25m.
Its housing arm also continues its expansion into Yorkshire with four new projects worth £25m starting this year in the region and with work already completed last year, the business will deliver over 3,000 homes in the North East and Yorkshire over the next three years.
Richard Spielbichler, ABL Director at IGF, commented: “We are proud to support Tolent, enabling the business to continue to grow and deliver the type of projects that matters so much to a great many people. Unlike options offered by big banks, where access to funding is becoming increasingly difficult, asset-based lending will afford Tolent the necessary flexibility to navigate its next growth chapter and the challenges that come with it. It also provides the business with an opportunity to take full advantage of its current momentum and secure its future.”
Chris Lloyd, KPMG’s debt advisory team lead in Yorkshire and the North East, said: “We were delighted to advise Tolent on this. Securing an appropriate facility from a lender who understands their sector was an important consideration for Tolent and by working closely together, we able to help them get the funding they needed, supporting their strategic ambitions.”