Updated: SHEPHERD, the York-based building group, is to get a £90 million cash injection from its bank.

The money will be used to take advantage of any new opportunities for growth that arise as the UK pulls out of recession.

Shepherd, which in May announced the loss of about 60 posts in its construction division, is careful not to link the facility to immediate growth in jobs, but concedes that any growth could ultimately have a long-term effect.

HSBC Corporate Banking has agreed the massive finance package by increasing committed lines to support the group’s strategy and growth plans.

The deal is seen by the bank as an act of huge confidence in the 119-year-old private family business, whose domestic and international operations have massively expanded.

They now incorporate companies specialising in construction across the private and public sectors; mechanical and electrical engineering; air conditioning and process services engineering; the manufacture of modular building systems, park and leisure homes, integrated equipment housings and bulk solids; material handling systems; modular building hire; house building and commercial property development.

Terry Smith, finance director of the Shepherd Building Group, said: “This extensive facility provides us with the flexibility to invest in our business over the coming years.

“Despite challenging marketing conditions, we remain well-capitalised and as such we are delighted to be in a position to pursue growth plans.

“As a result of our 40-year plus relationship, HSBC understands our business and our ambitions and has the unrivalled credentials to support our aspirations. We appreciate their ongoing support.”

Dave Gregson, the HSBC senior corporate banking manager for Yorkshire and the North East, said his bank was “delighted” to be able to further support a long-standing customer.

He said: “The facilities – which recognise the group’s financial strength and standing – will allow the management team to pursue their business plans from a sound base and enable them to capitalise on opportunities across their diverse operations.

“The deal highlights HSBC’s ongoing commitment to support quality businesses with strong management teams and a clear strategy across all sectors.”

The financing package was arranged by Mr Gregson and his corporate real estate manager Chris Kosmirak, with Eversheds legally advising.