Kier has said it expects underlying profit for 2019 to be around £25m below its expectations, as the cost of fixing the company’s issues also rises by £15m
In a trading statement today (3 June), Kier revealed that underlying profit for the year to 30 June 2019 would be £25m less than its predictions.
Kier continues to experience volume pressures within its Highways, Utilities and Housing Maintenance businesses.
A trading statement said: “In addition, whilst continuing to perform well with double-digit growth in its orderbook during FY2019, the Buildings business’ revenue growth for FY2019 will be lower than previously forecast.”
Kier now expects that FY2019 revenue will report a net debt position, which would have an adverse impact on its FY2019 average month-end net debt position.
The net costs associated with the FPK programme for FY2019 are now expected to be £15m higher than previously calculated. In part, this reflects an acceleration of the programme following the appointment of Andrew Davies as chief executive.
On 15 April 2019, Kier announced that Andrew Davies would lead a strategic review of the group to consider ways of further simplifying it, the allocation of capital resources across Kier and additional steps to improve cash generation and reduce leverage. Kier revealed that the conclusions of this review will be announced on 30 July 2019.