New Kier chief sets out to streamline £4bn group

Aaron Morby 2 months ago
Share

New Kier chief executive Andrew Davies has launched a strategic review of the debt-laden £4bn revenue group.

Davies started the job today announcing that the top-to-bottom review would consider further ways of simplifying Kier to create a more focused group.

He said the review would build on work that has been undertaken by the board in recent months and was additional to the previously announced Future Proofing Kier programme, initiated by former chief executive Haydn Mursell.

Davies said that the review would explore ways to further simplify Kier, the allocation of capital resources across the group and additional steps to improve cash generation and reduce leverage.

Last month Kier revealed a pre-tax loss of £35.5m in the second half of 2018 after it was hit by problem contracts and mounting debts.

Kier was hit by a £25m provision on its problem Broadmoor Hospital job and £26m on a disputed waste collection contract which has been cut short.

Integrating the McNicholas business also cost £5.4m .

The Future Proofing Kier restructuring programme cost another £10m during the period, but was expected to be “earnings and cash flow neutral” this year before delivering £20m of savings in 2020.

Kier also flagged-up “volume pressures” at its highways, utilities and housing maintenance markets.

The outcome of the fresh business review will be announced in July just after its June year end.

Meanwhile, interim chief executive Philip Cox now returns to his role of non-executive chairman.


 

Latest news

Shaylor owners sold majority stake months before collapse

Deal to set up Employee Ownership Trust funded by bank loan
3 hours ago

Crossrail station boss becomes Balfour aviation chief

Airport expert Steve O'Sullivan continues 39-year rise through ranks at Balfour
6 mins ago

Plans submitted for £2bn Midlands rail upgrade

Next PM urged to back major expansion of Moor Street station, faster services to Nottingham, Leicester, Hereford and Worcester
3 hours ago

Trio to share £1.4bn London highways upkeep

Framework extended from eight to 12 years to allow firms to invest in staff for efficiency gains
3 hours ago

Inland Homes gets green light to start £620m “urban village”

Major mixed-use scheme to be built at Cheshunt in Hertfordshire
3 hours ago

Rydon clinches £30m Bath Uni car R&D facility

Institute for Advanced Automotive Propulsion Systems will research next generation engines
10 hours ago

Size of construction disputes drops by half

Contractors shifting from adjudication towards negotiation to resolve rows
10 hours ago

Funding for £350m Wimbledon stadium and housing scheme

£350m Galliard Homes scheme will include 600 homes and new stadium
1 day ago

HS2 managing director to step down

HS2 starts search for successor to Jim Crawford
19 hours ago

Construction slavery victims exploited on sites across London

28 years in jail for crime gang who kept £1.2m in wages owed to workers
1 day ago

Costain scoops United Utilities’ first asset upkeep deal

Deal to maintain water and waste water treatment assets worth £175m over five years
1 day ago

Sureserve sets aside cash after Lakehouse sale

Provisions of £5.4m contained in latest results
1 day ago

Green light for Scotland’s largest regeneration site

Masterplan for Ravenscraig former steelworks redevelopment approved
1 day ago

Fit-out firm BW hires ISG director for third MD role

Max Steward has taken up third MD role in leadership rejig
1 day ago

Winners named for £700m South Wales Metro ECI deals

Balfour Beatty, Alun Griffiths and Siemens Mobility secure first work packages
2 days ago

Utility contractor Fastflow merges with United Living

Merger of utility group and housing maintenance firm creates £400m revenue business
2 days ago

Boost your online presence – join the Enquirer Directory

Site for suppliers and buyers showcases products, services and latest stories
1 year ago

‘Brexodus’ sees site engineer pay rates soar 19%

Salaries surging for site professionals as shortages bite
2 days ago

Welsh contractor Jistcourt goes into administration

Firm goes under just weeks after opening new Bristol office and major contract win
2 days ago

DfE starts bid race for £3bn offsite schools framework

Department for Education will deliver 30 projects a year using MMC
2 days ago

Design unveiled for Commonwealth Games stadium

Birmingham City Council reveals first images of new-look Alexander Stadium
2 days ago

Mayor backs big West London hotel scheme

New landmark Kensington building will deliver 750-bed hotel, 340 serviced flats and 62 affordable homes
2 days ago

Thames tilting bridge shelved over soaring cost

TfL warns bridge linking Canary Wharf to Rotherhithe could have cost £600m
5 days ago

Subcontractors wanted across south east projects

Big names offering work at Newmarket Meet the Buyer event: Register now
2 days ago

Building safety specialist snapped-up for £265m

Banking giant Macquarie Group swoops on Premier Technical Services Group
5 days ago

Balfour Beatty wins £50m Kent substation build

Work to start shortly on high-voltage substation at Littlebrook Power Station
5 days ago

Detailed plans in for £300m Chester shopping scheme

Vinci expected to get go-ahead for enabling works in October
5 days ago

Masterplan for largest area of Ebbsfleet garden city approved

Design codes set out for 4,600-home double village plan
5 days ago

Industry steps-in to save stranded Shaylor trainees

Former rivals pledge to pay university fees for undergrads left with tuition bills by Shaylor
6 days ago

Former Mitie boss joins Thames Tideway board

Baroness Ruby McGregor-Smith joins Super Sewer board as non-exec director
5 days ago

Contractor services