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Gloucestershire Business News

Shares crash in the major firm that built Gloucester's transport hub

Shares in leading outsourcing company Kier Group have plummeted this morning after the company issued a profit warning.

Within 90 minutes of the markets opening, shares in the company that built Gloucester's Transport Hub and redeveloped Shire Hall had fallen by more than 40 per cent.

Kier reported half-year losses of £34.3million for the six months to December 31, 2018 but said when releasing those figures that they were expecting an upturn in the second half of the year.

But in a statement released to the London Stock Exchange this morning the group said "the group's underlying operating profit for FY 2019 will be £25 million lower than previous expectations."

The statement said: As highlighted in Kier's FY2019 interim results, the Group continues to experience volume pressures within its Highways, Utilities and Housing Maintenance businesses.

"In addition, whilst continuing to perform well with double digit growth in its orderbook during FY2019, the Buildings business' revenue growth for FY2019 will be lower than previously forecast.

"As a result, Kier now expects that FY2019 revenue will be broadly in line with the Group's reported revenue for the 2018 financial year and currently expects that the Group's underlying operating profit for FY2019 will be c. £25 million lower than previous expectations and that the Group is likely to report a net debt position as at 30 June 2019, which would have an adverse impact on its FY2019 average month-end net debt position."

Kier appointed Andrew Davies as its new chief executive and he started a strategic review into the company that will look into how to get back on a firmer footing.

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