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Kier post-close update warns of £100m shortfall in turnover

Kier Group has provided an update on net debt, trading and strategic initiatives, following the close of its 2019 financial year.

As at 30 June 2019, the Group’s net debt was £167 million. Its average month-end net debt for the 2019 financial year was £422 million, at the lower end of previous guidance of £420-450 million.

The Group reported average payment days to its supply chain partners of 41 for the second half of the 2019 financial year, a significant reduction from 57 days for the first half of the year, whilst maintaining significant liquidity headroom.

Trading in the Group’s Infrastructure Services and Buildings divisions has remained resilient. However, the Group’s turnover for the 2019 financial year is anticipated to be approximately £100 million lower than for the 2018 financial year, principally as a result of property and land-led transactions which did not complete in June 2019, which will have an impact on the Group’s profitability broadly in line with its historic gross margins.

The Group says it continues to make progress against the strategic initiatives announced on 17 June 2019. The Group has received significant interest in Kier Living, its housebuilding division, and has commenced the sale process for this business.

Kier will publish the results for its 2019 financial year on 19 September 2019.

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