Kier to retain highways business in restructure plan

17/06/2019
Dominic Browne

Kier Group is to cut around 1,200 jobs and make savings of £55m over the next two years amid a planned sell-off of many of its commercial interests, but its highways business looks safe from the axe.

Kier Living, Property, Facilities Management and Environmental Services are all set to be sold off or dramatically reduced due to debt and financing concerns.

Regional Building, Infrastructure, Utilities and Highways businesses are all expected to survive the chop however.

'Together these businesses are expected to deliver long-term, sustainable revenues and margins and, with a renewed focus on their inherently cash generative characteristics, will be the core activities of the Group in the future,' Kier said.

”Local
A Kier LIving devlopment

In a statement to the market, the infrastructure company said that under the accelerated programme around 650 full time employees will have left by 30 June 2019 and an additional 550 are expected to leave during the financial year 2020.

'Following the completion of the programme, Kier expects to deliver annual sustainable cost savings of c.£55m from FY2021. The costs of delivering the programme are expected to be c.£28m during FY2019 and c.£28m during FY2020,' the firm said.

A strategic review, accelerated amid recent debilitating market speculation, concluded that there had been insufficient focus on cash generation and the group has debt levels that are too high.

Kier said reported net debt at 30 June 2019 will be higher than current market expectations with an increase in this year's average month-end net debt to £420m-£450m.

'The Group has committed debt facilities of £920m, with its bank debt not maturing until June 2022 and the majority of its private placement debt maturing between 2021 and 2024.'

Newly appointed chief executive Andrew Davies said: 'Kier has a number of high-quality, market-leading businesses, in particular Regional Building, Infrastructure, Utilities and Highways. I believe that these businesses will deliver long-term, sustainable revenues and margins and are inherently cash generative.

'As previously announced, I have been leading a strategic review which has resulted in the actions being announced today. These actions are focused on resetting the operational structure of Kier, simplifying the portfolio, and emphasising cash generation in order to structurally reduce debt. By making these changes, we will reinforce the foundations from which our core activities can flourish in the future, to the benefit of all of our stakeholders.'

The Housing business is valued at £120m, while the Group's shares briefly rallied last week only to fall again in early trading.

 

 

Also see

 

Highways jobs

Senior Clerk of Works

Bedford Borough Council
£27,905 - £30,507 + market rate supplement £2,630 per annum
Bedford is growing at a fast pace and we are investing heavily in our highways infrastructure. Bedford, Bedfordshire
Recuriter: Bedford Borough Council

Service Manager – Network Management

Somerset County Council
£46,122 per annum
A number of exciting permanent opportunities have arisen to drive forward further improvements to our traffic related services. Somerset
Recuriter: Somerset County Council

Principal Traffic Control Engineer

Somerset County Council
£33,799 to £37,849 per annum
A number of exciting permanent opportunities have arisen to drive forward further improvements to our traffic related services. Somerset
Recuriter: Somerset County Council

Assistant Engineer

Bedford Borough Council
£31,371 - £32,878 per annum
Bedford is growing at a fast pace and we are investing heavily in our highways infrastructure. Bedford, Bedfordshire
Recuriter: Bedford Borough Council

Senior Technician

Bedford Borough Council
£27,905 - £30,507 per annum
Bedford is growing at a fast pace and we are investing heavily in our highways infrastructure. Bedford, Bedfordshire
Recuriter: Bedford Borough Council

Engineering Technician

Bedford Borough Council
£24,313 - £26,999 per annum
Bedford is growing at a fast pace and we are investing heavily in our highways infrastructure. Bedford, Bedfordshire
Recuriter: Bedford Borough Council

Engineer – Multiple disciplines

Bedford Borough Council
£33,799 - £36,876 per annum
Bedford is growing at a fast pace and we are investing heavily in our highways infrastructure.  Bedford, Bedfordshire
Recuriter: Bedford Borough Council

Trainee Engineering Technician

Bedford Borough Council
£21,589 - £23,836 per annum
Bedford is growing at a fast pace and we are investing heavily in our highways infrastructure. Bedford, Bedfordshire
Recuriter: Bedford Borough Council

Senior Asset Engineer

Isle of Man Government
£47,064 - £54,805
The Isle of Man is a special place to live and work! Isle of Man (GB) (IM)
Recuriter: Isle of Man Government

Commercial Services Officer - Funerals

Brent Council
£33,291 - £35,724 p.a. inc. plus Standby Allowance
The post will be involved in all aspects of the funeral service Brent, London (Greater)
Recuriter: Brent Council

Transportation Planning Officer x2

Sandwell Metropolitan Borough Council
Band F, SCP 26-31 (£29,636 – £33,799 per annum) (£15.36 - £17.52 per hour)
The post holders will be part of a team developing transport policy encompassing all modes of travel Sandwell, West Midlands
Recuriter: Sandwell Metropolitan Borough Council

Highway Asset Engineer

Lambeth Council
£38,403 pa rising in annual increments to £41,466 pa incl LW
Lambeth is a vibrant place with a diverse population and an exciting cultural scene. Lambeth, London (Greater)
Recuriter: Lambeth Council

Senior Traffic Engineer

East Riding of Yorkshire Council
£32.029 - £34.788 career grade
We need an enthusiastic and experienced traffic engineer to manage our Traffic Team. East Riding of Yorkshire
Recuriter: East Riding of Yorkshire Council

Senior Community Infrastructure Levy Administration Officer

London Borough of Richmond upon Thames and London Borough of Wandsworth
£32,643 - £44,373
The successful candidate will play a key role in ensuring Richmond and Wandsworth Councils mitigate the... London (Greater)
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

Principal Information and Monitoring Officer

London Borough of Richmond upon Thames and London Borough of Wandsworth
£40,183-£47,274 (Grade PO5)
Opportunity has arisen within the Spatial and Transport Planning service for a team leader with demonstrable practical experience of... London (Greater)
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

Senior Community Infrastructure Levy Administration Officer

London Borough of Richmond upon Thames and London Borough of Wandsworth
£32,643-£44,373 (Linked Grade PO2- PO4)
There has never been a more challenging – or rewarding – time to work for Richmond and Wandsworth.  London (Greater)
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

Senior Engineer – Highways Development Service (HDS)

North Yorkshire County Council
£38,813 - £42,683 pa
We are looking for someone to join the Development Management Team in a new post. Northallerton, North Yorkshire
Recuriter: North Yorkshire County Council

Senior Development Management Engineer – Section 38

Warwickshire County Council
£37,849 - £39,782
Due to the nature of the role the ability to travel effectively throughout Warwickshire is essential. Warwick, Warwickshire
Recuriter: Warwickshire County Council

Partnerships & Activities Manager

London Borough of Bexley
£31,353 - £36,876
Currently seeking an experienced manager to work in the Parks and Open Spaces Team of Bexley Council’s Communities Department. Bexley (City/Town), London (Greater)
Recuriter: London Borough of Bexley

Chartered Environmental Health Traineeships– 3 Jobs

Kirklees Metropolitan Council
National Minimum Wage (Age appropriate) plus enhancements for night time working
This traineeship opportunity is for graduates to undertake the new Chartered Institute of Environmental Health (CIEH)... Kirklees, West Yorkshire
Recuriter: Kirklees Metropolitan Council

Highways on Fridays

Latest Issue

latest magazine issue

Zero carbon roads?

Modelling the future

A breath of fresh air

View the latest issue

Latest Video