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Gloucestershire Business News

Kier launches programme to cut costs

Construction company Kier is cutting costs to help reduce the company's debts.

Kier, which has been involved in some of the county's most important projects including the new Gloucester bus station, will announce details of the Future Proofing Kier programme when final year-end results are reported in September.

In a trading update the company said year-end net debt is expected to be in the range of £170m - £190m as forecast, with average month-end net debt of c.£375m reflecting reduced volumes due to bad weather affecting the construction business over the winter.

But the construction business has since returned to levels in line with management's expectations, with increased construction and services order books of more than £10bn.

In a statement Kier said: "Following the repositioning of the group to focus on three key market positions, infrastructure services, buildings and developments & housing, in June 2018 the group launched a new efficiency and streamlining programme, entitled 'Future Proofing Kier'.

Facilitated by significant investment in new systems over the past two years, this programme will improve productivity, include the disposal of non-core operations and deliver an improvement in operating margins and cash generation.

"It is anticipated that material benefits will be realised in the financial year ending 30 June 2020 and beyond. Further details about the 'Future Proofing Kier' programme will be announced in due course and at the full year results in September."

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