Kier makes first half loss of £35m

 

Kier has announced a pre-tax loss of £35.5m for the first six months of this financial year.

It made an operating loss of £20.9m, while its underlying revenue was up by 2% on the first half results for last year, rising to £2.2bn.

However the underlying profit from operations slumped by 15% and its margin fell from 2.8% to 2.4% on the previous year's half-way results.

”Local

Kier is currently going through a transformation programme - Future Proofing Kier - which cost £10m in the last financial year. It is also involved in a 'loss-making waste collection contract' - thought to be with Cheshire West and Chester Council - although it is in advanced negotiations to exit the deal.

After raising £250m in an under-subscribed rights issue in December, Kier’s net debt position as at 31 December 2018 fell to £180.5m from £238.5m in December.

The group forecast the full financial year 'to be earnings and cash flow neutral', with net savings of £20m predicted next year.

Philip Cox, executive chairman, said: 'Our regional building and property development businesses continue to operate well, although we are experiencing some volume pressures in the highways, utilities and housing maintenance markets.

'The Group has a significantly strengthened balance sheet following the completion of the rights issue in December 2018.

'The Board continues to focus on simplifying the Group, improving cash flow generation and net debt reduction, and forecasts a net cash position at 30 June 2019.

'While the Board notes the current political and economic uncertainty in the UK, and the implications for third party investment, the Group is maintaining its underlying FY19 expectations, with the full-year results being weighted towards the second-half of the financial year, as expected.'

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