Kier starts construction arm cost-cutting review

Aaron Morby 10 years ago

Kier has put its construction operations under review in a bid to cut costs in the face of falling UK orders.

The moves come hot on the heels of sweeping cost-saving measures at rivals Balfour Beatty and Morgan Sindall who have closed down offices and laid off hundreds of staff in the face of the deepening UK construction downturn.

In a trading statement this morning Kier said: “We are experiencing a good level of bidding activity across the group, however today’s trading environment remains difficult with little sign of improvement in the UK construction market.

“In light of this we are conducting a further review of our construction operations to ensure we remain as efficient as possible.”

Despite looming measures to rescale, Kier said its construction arm had managed to secure £400m worth of orders since July.

The firm’s order book of secured and probable work now stands at £2.1bn, representing 98% of forecast construction revenue for the year to June 2013 and half of work forecast for the year to 30 June 2014.

But Kier warned that the working capital environment in construction would continue to remain challenging.

Kier said it remained focused on the development of mixed-tenure affordable homes and boasted a £300m pipeline of work.

This includes a £20m order from Birmingham City Council for 100 new homes, 235 new homes in Sandwell (£31m), 64 homes in Lydney, Gloucestershire (£8m) and a mixed-tenure scheme of 100 homes in Sheffield through the HCA panel (£11m).

Its private housing business remains on track to deliver in excess of 500 completions this year.

The services division traded in line with expectations and secured £200m of new work so far this financial year, underpinning its £2.1bn order book.

It has secured major local authority maintenance contracts for Hampshire (£19m), North West Leicestershire (£12m) and Surrey (£9m). It was also named preferred bidder for £45m of planned maintenance work for the City of Lincoln.


Latest news

Government pays £700m for 50% stake in Sizewell C

New body, Great British Nuclear, will be set up to develop pipeline of nuclear projects
4 hours ago

Demolition worker crushed by excavator

Court hears 20-year-old woman was left with "life changing injuries"
9 hours ago

Costain wins Heathrow Airport asset renewal deal

Firm takes early contractor involvement role in Terminal 2 baggage handling upgrade
11 hours ago

Worker killed on £683m waste power plant site

Fatal collision involving heavy goods vehicle on giant north London site
21 hours ago

HS2 JV shifts four Wembley Stadiums of earth in record time

EKFB team digs and hauls 15 million cu m of muck in 20 months
12 hours ago

Milestone wins £300m Wiltshire highways upkeep

Ringway will hand over to Milestone in March next year
11 hours ago

Low-risk business model helps Renew post record results

Renew reveals latest acquisition with £15.6m purchase of water specialist Enisca
12 hours ago

London Albert Embankment hotel towers approved

Two separate hotels rising to 26 and 29 storeys approved
12 hours ago

Keltbray names new director of strategic engineering

Tim Lohmann takes up newly-formed role to drive innovative engineering solutions
12 hours ago

Go-ahead for £200m lithium refinery on Teesside

Work to start next year on Europe's first lithium hydroxide processing plant
1 day ago

HS2 agency workers paid the wrong wages

Payroll software problems leave workers out of pocket
1 day ago

Electric car whizz joins O’Rourke

Contractor looking to learn tech lessons from other sectors
1 day ago

Electrical contractors still confident despite staff shortages

Order books healthy but worries grow over margins
1 day ago

BAM to deliver £44m Yeovil College campus build

BAM will submit a planning application next month to start work later next year
2 days ago

Bouygues starts London 700-home council estate rebuild

Developer Linkcity seals financial close on Old Kent Road Tustin Estate job
2 days ago

Construction’s “Leading Lights” recognised

Full details of latest winners of Considerate Constructor Scheme's latest awards
2 days ago

ISG wins £600m Hertfordshire Hollywood film studio job

Holywood studio Sunset awards pre-construction contract for 90-acre studio complex in Broxbourne
4 days ago

NAO calls for road programme cuts as costs soar

Public spending watchdog calls for roads programme review amid project delays and cost overruns
5 days ago

Kier hires Laing O’Rourke veteran for London office push

Gus Wright takes up new London regional director role in January
5 days ago

VolkerFitzpatrick lands starring role on £174m film studios

Contractor to start main works on Eastbrook Studios in Dagenham
5 days ago

Wates poaches Balfour director to lead North West operation

Sarah Cooke to lead Wates Construction in the North West
5 days ago

£3.4bn Sellafield infrastructure race delayed to New Year

Contest to start in January for four partners in infrastructure delivery shake-up
4 days ago

Rebuilt TBM launches into second HS2 tunnel drive

Balfour Beatty Vinci TBM Dorothy starts second Long Itchingwood HS2 drive
5 days ago

Materials lead times back to pre-pandemic levels

Pinch points around gas boilers to persist until mid-2023 because of shortages of semiconductors
5 days ago

Bond strength helps TClarke towards £500m turnover target

Building services giant predicting a record year in 2023
5 days ago

All-clear for £125m Guildford Debenhams redevelopment

Native Land's St. Mary’s Wharf will comprise 185 homes
6 days ago

Thompsons brings down historic Redcar blast furnace – video

Redcar demolition clears the way for new net zero future
6 days ago

Wolverhampton picks McLaughlin & Harvey for £50m learning campus

Main construction to start next spring on City Learning Quarter
6 days ago

Michelmersh buys offsite brick cladding and chimney maker

Pre-built brick products producer Fabspeed sold for over £6m
6 days ago

Pagabo acquires mental health monitoring business

Framework giant makes move after Moodbeam goes into liquidation
6 days ago

Contractor services