Kier to review further cost saving options
Kier Group expects to complete its shedding of around 1,200 staff by the end of June and is “reviewing further cost optimisation opportunities”, the firm said today.
In June last year, the contractor revealed the conclusions of its strategic review which outlined a “significant refocusing” of the business to concentrate on its traditional core business of construction and civil engineering.
Issuing an update to shareholders today, Kier said it continues to make good progress on this refocus with respect to its office closures, the outsourcing of certain functions and the reduction in headcount.
“The group expects to deliver a headcount reduction of c.1,200 by 30 June 2020 and annual cost savings of at least £60 million in the financial year ending 30 June 2021 and is reviewing further cost optimisation opportunities,” the board said today.
“The group continues to progress the disposal of Kier Living, its housebuilding business, and to evaluate the options for its Property business.”
Trading for the period from 15 November 2019 to 31 December 2019 was in line with the board’s expectations, and Kier continues to be awarded new contracts across the markets in which it operates, the board added.
Kier said it continued to manage its net debt closely during the period. The firm’s average month-end net debt for the six-month period to 31 December 2019 was in line with the board’s expectations.
Chief executive Andrew Davies said: “The work to re-shape the group continues through the careful execution of our strategic priorities and efforts to significantly reduce the group’s cost base. The group is performing in line with our expectations and we continue to win work from our customers.”
Kier said will bring forward the date on which it announces its results for the six-month period ended 31 December 2019 from 19 March 2020 to 5 March 2020.