A SUPPLIER of specialist building materials has secured a £54 million refinancing deal as it positions itself to benefit from an upturn in the construction sector.

Wetherby-based Encon Group is looking to continue building its market share in the UK off the back of the funding, which comprises facilities provided by funds and accounts advised by Farallon Capital Europe and Lloyds Bank Commercial Finance.

The Encon Group started trading in Halifax in 1981 as a distributor of insulation products. It now has branches in 24 locations across the UK, employs more than 500 people and has an annual turnover of £200 million.

In 2011, the business underwent a management buyout, which was led by the current chief executive, Stuart Moore, and financed by Lloyds Bank.

Commenting on the refinancing deal, Mr Moore said: "This funding transaction provides Encon with a stable financing base committed for the next five years and incorporates facilities both ample and flexible to provide for future growth and further enhancement of customer services.

"I am pleased to be extending our existing relationship with Lloyds Bank Commercial Finance and to be entering into a new association with Farallon Capital Europe.”

The Encon Group was advised by law firm Irwin Mitchell’s Leeds and Sheffield offices led by partners Paul Johnson and Dean Gormley.

Mr Johnson said: "The Encon Group has performed strongly despite tough trading conditions and it is ideally placed to take advantage of the current upturn within the sector. "