Case Study

Barhale lay the foundations for growth with new £11m ABL facility

Barhale Holdings plc

Walsall-based infrastructure firm Barhale has secured a £11m asset based lending (ABL) facility from Independent Growth Finance (IGF) to fund its future growth plans.

The £140 million turnover civil engineering specialist, which boasts a customer base including Anglian Water, Network Rail, National Grid and Yorkshire Water, has agreed a new three-year revolving credit facility with ABL specialist Independent Growth Finance (IGF).

The deal more than doubles the working capital available to Barhale from its previous lender as it moves to invest for growth and build upon its existing order book.

The contractor employs more than 700 people and has more than 40 years’ experience working in the water, transport, built environment and energy sectors, with a particular specialism in tunnelling.

Recent high-profile projects include works on the HS2 utility diversions, the Thames Tideway Tunnel and upgrades to London’s Finsbury Park tube station.

Julian Ripley, CFO at Barhale, said: “It is hard to overstate the significance of securing this funding for our future growth potential. Alongside our direct delivery model and extensive track record delivering some of the UK’s largest civil projects, we now have a solid platform and additional capacity to fuel sustainable growth. There is more than £650 billion of private and public infrastructure investment planned in the UK over the next decade, which presents a huge opportunity for Barhale.”

The deal was led by FRP’s debt advisory team, including partners and asset-based lending specialists Dave Edwards and Andy Dimmock.

Dave Edwards, Debt Advisory Partner at FRP, added: “Barhale is a well-established force in the sector with the scale and expertise to deliver the kind of large civil projects that will help serve communities across the country. This transaction proves the growing appetite for innovative and alternative lending models like ABL in sectors such as construction, where they have not traditionally played but are now offering significant value.”

“We know the marketplace in great detail and have access to a very broad and deep network of trusted lenders with whom we’ve worked many times before.”

Jon Hughes, Director at IGF, commented: “We are delighted to be able to support the Barhale Group as it continues to grow its business, across many important UK infrastructure projects.  The facility demonstrates IGF capabilities to structure and deliver creative ABL solutions to support a wide range of mid-market businesses.”

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