HOMEBUILDER Stewart Milne Group has secured a £185 million banking facility with Bank of Scotland, a key move in its plans for long-term growth.
The Aberdeen-based group, which has an annual turnover of about £220m and employs 850 people, is pursuing a strategy of focused growth and geographical expansion to meet the needs of a strong housing market.
The funding package 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.
Meanwhile, Stewart Milne Timber Systems continues to increase market share as offsite construction is increasingly recognised as the best way to meet the rising housing demand as both house builders and contractors seek to find alternative means to complete projects cost effectively and without constraints.
Stewart Milne Group chief executive Glenn Allison 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.
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 benefiting from growth in the housing market with a significant number of national housebuilders and contractors adopting timber frame and offsite construction to deliver their needs in a streamlined and cost-effective manner.
“We believe 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 its 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.”
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