Svella Plc Statement on Cubby Construction Investment Discussions

Svella Plc (“Svella”) wishes to update its employees, customers and all its stakeholders on its recent investment discussions with Cubby Construction Limited.

Over the past several months, Svella has engaged in extensive and constructive negotiations regarding a proposed £12 million investment in Cubby Construction to provide financial support and expertise.

Since January 2025, Svella has provided short-term debt funding to support Cubby Construction’s ongoing operations while both parties worked prudently towards finalising the necessary due diligence, funding structure and legal documentation. It was initially anticipated that this process would conclude by the end of March at the latest.

During this period, Svella’s funding has provided working capital and enabled important transactions within Cubby Construction to support its future growth and stability.

Despite best efforts and open dialogue, the parties have not yet reached a final agreement on the proposed investment. As a result, and in accordance with the terms of the facility agreements, Svella is taking prudent steps to safeguard the interests of its stakeholders, including the employees, customers, suppliers and creditors of Cubby Construction and its subsidiaries.

Discussions with Cubby Construction remain ongoing and Svella’s commitment to a positive outcome, including the potential £12 million investment, remains unchanged even if a restructuring process becomes necessary.

From the outset, Svella’s primary objective has been to secure a solvent, long-term solution for Cubby Construction to protect jobs, support creditors and ensure continuity across live and future customer contracts.

The investment has the potential to support Cubby Construction’s expansion into new markets, such as energy, rail and infrastructure, while also enabling targeted acquisitions to accelerate growth.

Svella brings not only financial resources but also operational expertise and a shared goal of supporting sustainable growth and long-term success.

While a final agreement has not yet been approved with the current director and shareholder of Cubby Construction, Svella has acted transparently and in good faith throughout, always prioritising the interests of employees, creditors and the wider community.

Svella remains committed to working collaboratively with all parties, including any appointed administrators, if this becomes necessary, to find solutions that protect the Cubby Construction workforce and support customers in the delivery of ongoing and future contracts.

We also wish to reassure all stakeholders that, should the proposed £12 million investment not be accepted or alternative refinancing not be secured in the near term, and the appointment of administrators becomes necessary, Svella remains committed to providing the £12 million investment to support a positive long-term outcome for the business and its stakeholders.

Andrew Tinkler, Chairman of Svella Plc, said: “We remain committed to supporting Cubby Construction, its subsidiaries, employees and all stakeholders. Our focus is on securing the best possible outcome for everyone involved, and we will continue to work collaboratively to deliver a positive future for the business, its people and customer base.”

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For any further details contact Glenn Patterson on 07872 470115 or email info@svella.com.