The language of finance in construction – Keltbray


What is a credit facility? What is liquidity? We use Keltbray’s 2023 trading update as a case study in the language of finance in construction.

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by Rory ButlerJanuary 12, 2023

Keltbray Holdings has agreed a new three-year £33 million credit facility with Santander UK, its principal bank. 

The facility underpins Keltbray’s 2022 year-end liquidity* position of £44.1 million and will support its continued growth strategy, said the firm. 

What is a credit facility? 

A credit facility is a formal financial assistance program. A type of pre-approved loan. 

A lending institution, in this case Santander, offers the borrower (Keltbray) money to use as operating capital. 

It enables borrowing on an ongoing basis over an extended period, rather than applying for a new loan each time. 

*What is liquidity? 

In this scenario, liquidity is Keltbray’s ability to convert its assets to cash or to acquire cash (a loan or money in the bank) to meet its short-term obligations (or liabilities). 

Solvency, on the other hand, is its ability to pay long-term obligations. 

Operational and financial performance 

Keltbray maintains a strong operational performance, resulting in annual increases in revenue, profit before tax and order book. 

Orders carried forward into 2023 FY: £526.4 million 

“The Group continues to de-risk the sales order pipeline across its business portfolio by focusing on robust selection governance, targeting projects with acceptable terms, conditions and financial margins, which benefit from our integrated, self-delivery approach,” said the firm. 

Despite prevailing external headwinds around costs, supply and labour, the Group said it is confident of growth in “addressable markets”. 

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