HAVELOCK Europa looks to have bought itself some space to make its turnaround plans work after arranging a multi-million funding package amid challenging market conditions.

Subject to legal completion, the company has secured £3m debt from a new funder for a six year term. Existing lenders have agreed to extend a £5m facility for two years. The trustees of the company pension scheme are minded to give the firm longer to close the deficit on it.

The commitments signal faith in Havelock and Shaun Ormrod, who took charge five months ago.

Around 300 employees in Scotland will also be hoping the strategy outlined by Mr Ormrod pays off.

He believes Havelock has the expertise in fitting out buildings such as schools and related services to achieve strong growth in future, if the company gets better at selling.

It can trace its roots to the McIntosh cabinetry business that was started in 1869.

The ambition is to grow sales from an expected £60m this year to £100m, with £20m booked overseas and a focus on higher margin trade

But the group is likely to face big challenges following a difficult 2017.

Barring a change in government policy, the key public sector market could remain difficult for years.

Mr Ormrod sees potential in the UK’s retail and corporate markets and the export trade.

However, amid uncertainty about the implications of Brexit, the outlook in all three areas is unclear.