Kier Group PLC, a UK construction, services and property group active in building and civil engineering, has reported a loss of £245m before tax. The dip can be attributed to the cost associated with restructuring the business. However, Kier’s annual revenue has remained unchanged at £4.49bn but charges related to restructuring, preparing businesses for sale and even loss-making contracts have shown an adverse effect on the bottom line.
The infrastructure services like highways, utilities have sunk to £1,671m (2018: £1,733m) and operating margins have shrunk to 3.4% as against 5.5%.
The operating profit of the company has seen a dip of 33%. Kier’s new Chief Executive Officer has already announced to sell Kier Living, their house-building business, quitting property development and also exiting from the environmental services and facilities management sphere. These developments are currently underway and will save Kier £55m every year by 2021.
Andrew Davies confirmed that Kier has experienced a difficult year that resulted in a very dismal financial performance. However, the reshaping of the group is being done to restore Kier’s robust financial health.