Kier puts Scottish mining division up for sale
In a trading update this morning, the group said the move is part of its “ongoing approach to capital discipline” and follows “significant year-on-year organic growth” in its construction division.
The division’s margins remain in line with management’s expectations at approximately 2 per cent and the order book of secured or probable work represents more than 80 per cent of anticipated revenue for the year ending 30 June 2016.
The statement read: “As a result of our ongoing approach to capital discipline, our mining operations at Greenburn in Scotland have been prepared for sale and discussions are ongoing with a potential buyer. As a consequence, it is our intention to classify its operations and assets as held for sale at 30 June 2015. This will result in a non-underlying impairment charge in the current financial year, but will have no impact on the group’s cash position.”
Underlying trading performance for all four of the group’s divisions for the year to 30 June 2015 has remained in line with management’s expectations.
Following the completion of the acquisition of Mouchel last month, and as a result of continued underlying organic growth, the total order book for the enlarged group has been maintained at £9.3 billion at 31 May 2015.
Kier added that the integration of Mouchel’s operations is progressing well with the smooth transition of operational management and with synergies on track.