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

Asset Management Technical Officer

Camden London Borough Council
£33,122 - £38,423
You will be responsible for providing technical support, including user support, identifying and implementing improvements and... Camden, London (Greater)
Recruiter: Camden London Borough Council

Environmental Improvement Officer

Sandwell Metropolitan Borough Council
£29,636 - £33,799 per annum
We have an exciting opportunity to recruit to the position of Environmental Improvement Officer within Regulatory Services. Sandwell, West Midlands
Recruiter: Sandwell Metropolitan Borough Council

Legal Officer - Planning and Highways

Kirklees Metropolitan Council
£26,999 - £29,636
Kirklees Legal Services is one of the largest legal practices in the area and carries out and commissions legal work required by the Council Kirklees, West Yorkshire
Recruiter: Kirklees Metropolitan Council

Environmental Cleansing Operative

Royal Borough of Greenwich
£20.466 - £20.835
This is an exciting opportunity to be part of a dynamic team of staff responsible for the cleanliness and general maintenance of a wide range of... Greenwich, London (Greater)
Recruiter: Royal Borough of Greenwich

Road Safety Engineer / Road Safety Auditor (all levels of experience)

TMS Consultancy
By negotiation
Purpose of the Job Depending on individual experience, candidates will be involved in a range of road safety engineering and traffic management pro... Coventry
Recruiter: TMS Consultancy

Senior Technical Officer

Newport City Council
£30,507 - £33,799
We are pleased to be seeking individuals to fill a new Senior Technical Officer post within Highways.    Newport (Casnewydd)
Recruiter: Newport City Council

Senior Technical Officer

Kirklees Metropolitan Council
£24,799 - £29,636
The successful candidate will feed into the planning process, assessing applications in accordance with the... Kirklees, West Yorkshire
Recruiter: Kirklees Metropolitan Council

Technical Support Officer

Royal Borough of Greenwich
£21.591 - £25.809
Using your administrative and communication skills to the full, you’ll provide invaluable support across our busy Directorate.  Greenwich, London (Greater)
Recruiter: Royal Borough of Greenwich

Assistant Tree Officer

Camden London Borough Council
£25,880 - £27,904
Looking for an assistant tree officer to join a busy Tree Section working with the most up to date arboriculture equipment’s and IT resources.   Camden, London (Greater)
Recruiter: Camden London Borough Council

Green Space Partnership Officer

Camden London Borough Council
£30,066 - £34,538
You will have excellent written and presentation skills including experience of preparation of reports, briefings, minutes of meetings and... Camden, London (Greater)
Recruiter: Camden London Borough Council

Parking Projects Manager

Brent Council
£45,585 - £48,482 p.a. inc.
As Parking Projects Manager, you will be responsible for leading the delivery, to time and budget, of key parking projects... Wembley, London (Greater)
Recruiter: Brent Council

Parking Operations Officer

Kirklees Metropolitan Council
£19,554 - £21,166
Are you a hard-working individual, who enjoys working outdoors in all weather conditions? Kirklees, West Yorkshire
Recruiter: Kirklees Metropolitan Council

Team Leader (Local Plan)

City of Bradford MDC
£40,760 - £43,662 pa
The post requires a degree and eligible to be a corporate member of Royal Town Planning Institute and NVQ Level 5 in Management or... Bradford, West Yorkshire
Recruiter: City of Bradford MDC

Team Leader (Infrastructure & Local Plan Implementation)

City of Bradford MDC
£42,683 pa - £45,591 pa
The Post provides an exciting opportunity to manage a multidisciplinary team of professionals leading on Transport planning and Local Plan Bradford, West Yorkshire
Recruiter: City of Bradford MDC

Environmental Health Officer

Camden London Borough Council
£32,473 - £42,490
Seeking Environmental Health Officers to contribute towards delivering the project objectives of addressing rogue landlords and... Camden, London (Greater)
Recruiter: Camden London Borough Council

Road Safety and Sustainable Transport Assistant

Telford & Wrekin Council
SCP 13-17 - £11.41 - £12.35
Exciting opportunity to join Telford & Wrekin Council’s Highways, Transport & Engineering, Road Safety & Sustainable Transport Team. Telford, Shropshire
Recruiter: Telford & Wrekin Council

Principal Road Safety Officer

Royal Borough of Greenwich
£42684 - £45585 per annum
We are looking a fantastic new road safety expert to lead our high performing and innovative Road Safety Team.The Royal Borough of Greenwich is commit England, London, Woolwich
Recruiter: Royal Borough of Greenwich

Principal Development Co-ordinator

Gloucestershire County Council
£33,799.00 - £38,813.00 plus 12% supplement*
Looking for those who will quickly understand the Gloucestershire context and can display their expertise and... Gloucestershire
Recruiter: Gloucestershire County Council

Team Leaders

Gloucestershire County Council
£43,662.00 - £45,591.00 plus 12% supplement*
Looking for those who will quickly understand the Gloucestershire context and can display their expertise and solid professional experience in... Gloucestershire
Recruiter: Gloucestershire County Council

Highways Project Manager  

Gloucestershire County Council
£43,662.00 - £45,591.00 plus 12% supplement*
Looking for those who will quickly understand the Gloucestershire context and can display their expertise and... Gloucestershire
Recruiter: Gloucestershire County Council

Highways on Fridays

Register now!

Latest Issue

latest magazine issue
  • Highways England at Westminster
  • Traffex Scotland and Bridges Scotland guide
  • Highways Awards winners
View the latest issue

Latest Video