Kier promises action as debt spirals

By Hamish Champ2018-09-20T07:17:00

Contractor puts faith in ‘future-proofing’ programme to streamline business as net debt hits £375m

Kier’s management has promised to address the contractor’s spiralling debt after reporting a 17% increase in net debt in its latest results.

With speculation rife around its debt position and investors shorting its shares amid concerns about its future, the contractor said average net debt had risen to around £375m, which it said was the result of the timing of investment in property and residential assets throughout the 12 months to the end of June, the acquisition of McNicholas and the creation of its joint venture with Homes England.

It also blamed weak construction volumes in the first half followed by a strong recovery late in the second six months.

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