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Gloucestershire Business News

Company who built Gloucester's Transport Hub reports £35million loss

Construction company Kier have reported losses for the first half of their financial year.

The company, who built the new Gloucester Transport Hub and who are responsible for the overhaul of Shire Hall, reported a loss of £35.5million for the six months to December 31, 2018.

Kier were in charge of the redevelopment of Shire Hall

The move into the red comes after reporting profits of £34.3million for the same six-month period last year.

Executive chairman Phillip Cox said that full-year results were still on track to reach expectations due to being "weighted towards the second-half of the financial year."

Revenue grew by two per cent to £2.2billion, but non-underlying charges of £59.9million hit during the six-month period.

Last week, Kier announced that its debt levels had risen to £180.5million from the £130million reported in their last trading update, due to an accounting error.

Mr Cox said: "Our regional building and property development businesses continue to operate well, although we are experiencing some volume pressures in the highways, utilities and housing maintenance markets.

"The Group has a significantly strengthened balance sheet following the completion of the rights issue in December 2018.

"The Board continues to focus on simplifying the Group, improving cash flow generation and net debt reduction, and forecasts a net cash position at 30 June 2019.

"Whilst the Board notes the current political and economic uncertainty in the UK, and the implications for third party investment, the Group is maintaining its underlying FY19 expectations, with the full-year results being weighted towards the second-half of the financial year, as expected."

Kier have been operating without a chief executive since January after Haydn Mursell left his post following a poorly-subscribed rights issue.

Andrew Davies will join the group on April 15 from Wates Group, where he has been CEO for the past five years.

Cox, added: "Andrew brings a strong track record of business leadership and operational experience and, on behalf of the Board, I would like to welcome Andrew to the Group."

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