Struggling contractor, Kier has reported a full-year loss of £245m, as it pushes ahead with restructuring despite uncertainty over its financial health
Kier said it had “experienced a difficult year” after it launched a £250m rights issue in December 2018 to boost its balance sheet.
Today (19 September), Kier has reported a pre-tax loss of £245m, a stark difference from its profit of £106m the previous year.
Largely related to the restructuring, the contractor reported charges of £341m. Revenue fell from £4.24bn to £4.12bn, while its net debt was £167m, compared with £186m the year previously.
Commenting on the results, Andrew Davies, chief executive, said: “Kier experienced a difficult year, resulting in a disappointing financial performance.
“However, we are building firm foundations for the future: we have a new management team in place, we have defined our strategic priorities and we are taking decisive actions to deliver them.
“We have a strong order book, reflecting the strength of the underlying business, the quality of our people and the Group’s capabilities.
“The sale of Kier Living is progressing well and we are exploring options to accelerate the release of capital from our Property business.
“The re-shaping of the group is designed to reduce its overall indebtedness during FY2020 and to restore Kier to robust financial health.”
In its full-year statement, Kier added that it does not expect revenues to increase in its next financial year, as the broader market environment including Brexit may lead to delays in decision making by clients.
“Brexit has the potential to disrupt the group’s operations, particularly in relation to materials, people and the supply-chain.
“The group has established a ‘Brexit task force’ and has in place business continuity plans to mitigate the risks associated with Brexit,” it said.
Kier also announced that chairman Philip Cox would be stepping down after just over two years in his position.
“The search process for Mr Cox’s successor as chairman has commenced,” it said.