Kier to sell Mouchel Consulting as group streamlines

Aaron Morby 7 years ago

Kier is preparing to sell its Mouchel Consulting business employing around 2,000 consultants and back office staff as its focuses on core construction, property and services activities.

Kier chief Haydn Mursell says business is resilient to any adverse impact from Brexit
Kier chief Haydn Mursell says business is resilient to any adverse impact from Brexit

The streamlining plan will also see Kier close down its Caribbean construction arm and book exceptional hits from two major contracts at its environmental services business for a total one-off cost of £53m.

Kier bought the Mouchel Group in April last year for £265m. The bulk of the group activities have been integrated into Kier’s highways and local authority maintenance business.

But chief Haydn Mursell has decided that Mouchel Consulting does not fit within Kier’s own in-house design business.

Mouchel Consulting is expected to make an £8m profit this year and has net book assets of around £25m.

In a trading statement this morning Kier said its expected that a profit would be realised on the sale.

Kier also is winding down its Caribbean construction business blaming a challenging trading environment for a one-off cost of £18m.

In the UK, the performance of separate waste contracts in Chester and in East Sussex are expected to be adversely hit by the low oil price and  lower returns on recycled waste.

As a result, Kier is taking a £35m in its full-year covering all future cash outflows on two environmental contracts of eight and ten years’ duration, respectively.

Mursell reported that  the firm is ramping up its Middle East construction business after winning a trio of contracts including a £49m residential job and £15m town square infrastructure project, both in Dubai.

Across the group Mursell reported strong trading in line with expectations and a strong performance on debt now standing at £140m, some £10m ahead of target.

He added that Kier’s breadth of activities and strong order books provided both visibility and resilience amid the uncertainty caused by Brexit.

Mursell said that the acquisitions of May Gurney and Mouchel had significantly increased the level of visible, long-term earnings from construction and services activities.

The property division boasted a healthy £1bn pipeline of projects, largely comprising non-speculative schemes, and the residential division’s mixed tenure business has a pipeline of over £600m.

Latest news

Bouygues/Murphy JV confirmed for £2.3bn Thames tunnel job

BMJV clinches 4.2km Lower Thames Crossing road tunnel job
2 days ago

Berkeley keeping close eye on subbies as market softens

Supply chain insolvency now bigger threat than build cost rises
1 day ago

Roofing firm fined £881,000 after double fall

Court hears of two falls on sites involving same contractor
2 days ago

Plans in for £450m Coventry city centre regeneration

Work is expected to start next summer on City Centre South scheme
1 day ago

Galliford Try to upgrade Red Arrows base

Contractor seals quartet of RAF base upgrades
1 day ago

Strabag tunnel drive in Yorkshire sets new world record

Woodsmith potash mine tunnelling project to be included in Guinness World Records
2 days ago

McLaren and Arlington to develop York Central site

Developer deal signed for one of the UK’s largest city centre regeneration schemes
2 days ago

Watkin Jones plans 36-storey Glasgow tower

The Ard student rooms scheme will be Glasgow's second tallest building
2 days ago

Balfour Beatty on track for solid set of results

Country's largest contractor on course to meet financial targets
2 days ago

Brymor Group Southern heads for CVA

Hampshire builder applies for Company Voluntary Arrangement with its creditors.
2 days ago

Former Costain transport chief joins Aecom

Sue Kershaw takes up US-based vice president job with consultant
3 days ago

Industry’s best construction managers revealed

More than 80 now in the running for delayed awards: Full list
3 days ago

Materials prices plummet as housing demand slumps

Buyers report biggest fall in purchasing costs for 14 years
3 days ago

Welsh contractor Andrew Scott targets £90m turnover

Profit and revenue up at Port Talbot-based civils and building firm
3 days ago

M-AR buyer starts round of redundancies

30 jobs at risk after modular firm bought out of administration
3 days ago

First HS2 viaduct completes deck beam installation

EKFB completes beams for first of project's 50 major viaducts
3 days ago

Fatal accident at Laing O’Rourke Oxford site

Work suspended on site after tragedy
4 days ago

Homes lead the way as Bancon Group boosts turnover

Homes and contracting group looking to further growth in 2024
3 days ago

L&G Modular Homes scheme replaced by traditional build

Wolverhampton council chooses new partner and build method for £150m project
3 days ago

£33m Plymouth city centre homes scheme approved

Spring start for Bath Street scheme in Millbay regeneration area
3 days ago

Balfour renews £330m Lincolnshire highways deal

Firm will use its new operational control hub to promptly address network issues
4 days ago

Three Caledonian Modular-built schools to be demolished

DfE confirms Essex, Somerset and Northampton schools will be bulldozed and rebuilt
4 days ago

Gilbert-Ash takes £30m Tate Liverpool revamp

Work to start in the New Year on remodelling of iconic 1846 warehouse
4 days ago

HS2 Solihull mass transit enabling works out to bid

Bidding for £60m main works to start early next year
4 days ago

Modular health specialist Vanguard rescues M-AR

Deal with administrators sees Vanguard add production capacity with 100,00 sq ft offsite factory
4 days ago

Torsion forms JV to build £90m Leeds resi tower

Construction to start in January on one of Leeds' tallest towers
4 days ago

Approved change to concrete ‘recipe’ to slash carbon emissions

New approved concrete mixes will be able to blend finely ground limestone and fly ash
5 days ago

Network Rail unveils Cardiff South Central masterplan

Plans being drawn up for major housing-led mixed-use scheme
5 days ago

McLaren Living to revamp Watford police station site

Developer to submit plans for a major mixed-use development
5 days ago

National Grid £12.8bn HV civils framework hits market

Firms needed for major power line links and high voltage direct current converter stations
5 days ago

Contractor services