Kier on track with debt reduction efforts

Aaron Morby 3 months ago
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Kier this morning revealed it was starting to make progress reducing its debt mountain.

In a statement for the construction group’s annual general meeting, Kier said it expected average monthly net debt to reduce from its £410m peak in the summer to around £390m in the current first half period to December.

Chief executive Haydn Mursell will also tell the agm that the future proofing Kier programme has made progress with respect to streamlining the business and improving cash generation.

Following the collapse of Carillion and Interserve’s financial troubles, Kier said that it recognised that net debt was now increasingly a key focus for stakeholders in the industry and it recognised the importance of a strong balance sheet to take advantage of opportunities to underpin its future performance.

The board said it remained confident it was on track to meet expectations for this financial year ending June 2019, but said results would be weighted towards the second half.

It added that the cost of delivering the FPK programme in the first half of the financial year is forecast to exceed savings by around £10m. Although at full-year this would become earnings and cashflow neutral.

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